Stock Market Today LIVE Updates: Yes Bank shares jump nearly 100% in 3 days; private lender to hold press conference today

Coronavirus to have long-term impact on economy

Firms operating in the capital markets have business continuity programmes (BCP) that ensure they are well-prepared for any short-term and localised disruption to their operations. However, the potential long-term and cross-regional nature of a coronavirus pandemic would present some particularly tough challenges, said Will Packard, Managing Principal at Capco, the global technology and management consultancy.

“BCPs typically rely on staff in other regions to provide cover for issues in a specific location, so current plans will need to be revisited. Businesses may well not be able to resort to flying in additional staff to support a sustainable response. They will need to prioritise tasks and investigate solutions such as working from home, as well as mobilising resources with line experience who are not currently working within line functions," he said.

“Current market volatility will have helped trading revenues in the short term, but an overall and more sustained depression in global economic activity will significantly impact trading volumes and M&A activity in the longer term. Firms should focus on serving existing clients and  prioritising those who would suffer most harm if services are disrupted.”

Nifty Bank down 50 points

#CNBCTV18Market | Nifty Bank whipsawing between gains & losses, now down around 50 points pic.twitter.com/mLpeFyfJYw

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Virus-hit Gulf has little room to boost revenue after oil price shock

The coronavirus outbreak and plunging crude prices are a double blow that leaves Gulf Arab governments with few options to manage fiscal stability while trying to shield their economies and defend currency pegs.

Even the largest Arab economy, Saudi Arabia, which launched a war for market share with Russia following the March 6 collapse of an output deal between OPEC and its allies that has wiped 30 percent off oil prices, will face strains.

The last oil price rout in 2014 saw the region, which relies on energy exports, slash subsidies, introduce taxes to diversify revenue sources and try to shrink lavish cradle-to-grave welfare systems and bloated public sectors.

Now, a focus on stimulating economic activity and easing the impact on their populations of the spreading coronavirus makes it difficult for the six Gulf Cooperation Council (GCC) governments to hike taxes or cut subsidies.

Zee Entertainment clarifies on Yes Bank

Zee Ent says company has has no borrowings from Yes Bank whatsoever. And, request made by Enforcement Directorate to Subhash Chandra has no linkage to the company pic.twitter.com/vAh4yHujqT

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Asian stocks jittery after Wall Street plunge

Asian shares held their ground on Tuesday in a volatile session following one of Wall Street’s biggest one-day routs in history as headlines about the coronavirus outbreak and its global economic impact whiplashed investor sentiment.

Financial markets cratered on Monday with the S&P 500 tumbling 12 percent, its biggest drop since “Black Monday” three decades ago, as a series of emergency central bank rate cuts globally only added to the recent sense of investor panic.

Australian shares closed 5.9% higher, to record the biggest daily percentage gain since Oct 2008, following a nearly 10% plunge on Monday. But few investors are feeling confident and uncertainty prevails.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, as was Japan’s Nikkei stock index which traded either side of even through a bumpy day. South Korea’s KOSPI was down 2.4 percent.

Housing Finance Corporations to rebound in 2020-21

Housing Finance Companies (HFCs) are expected to rebound to double-digit figures in fiscal 2021 to 10-12 percent after a difficult fiscal 2020, wherein loan growth is estimated to be as low as 2 percent, said Brickwork Ratings.

Funding impairment and a slowdown in housing sales skewed demand for mortgage loans in the past 18 months.

The spurt in loan growth in the next fiscal will depend on HFCs successfully redefining their business model to include increased levels of co-lending with banks and continuing the steady pace of loan securitisation, while reducing reliance on short-term borrowings. However, asset quality and profitability will remain under pressure as the borrowing cost and credit costs rise on the back of increased delinquencies in the developer loan and loan against property (LAP) portfolios, the credit rating agency said.

Strong inflows; higher cash levels

A lot has changed in global and Indian equity markets over the last couple of weeks, rendering in large part the mutual funds holding data of Feb'20 outdated.

However, it still is worth taking stock of the industry positioning before the crash started. Inflows into equity funds picked up sharply in the month to Rs87bn, a 15-month high. This showed up as an increase in cash levels after four months of reduction in cash holding, said Emkay Global.

Corporate India fears coronavirus will pull down GDP by 50 bps in FY2020-21

Corporate India is expecting a 0.5 percent hit on economic growth in FY2020-21 if the coronavirus pandemic lasts longer, pushing up fiscal deficit and creating more bad loans for the bank, says an industry survey.  

Care Ratings has conducted a survey on the impact of the coronavirus pandemic on the economy among over 150 CEOs, CFOs, investors, analysts and other stakeholders from manufacturing, financial services, infra, realty and services between 5 and 12 March.

According to the survey, the economic impact will be significant and long-term if the virus continues for longer.

‘Decline in oil is not purely an oversupply problem’

The decline in oil is not purely an oversupply problem, but also reflects weak global demand. Risks are mounting to global growth, including the US, Europe and China, which pose considerable risk to the oil demand dynamic, said Radhika Rao, Economist, DBS Group Research

The COVID-19 spread and resultant social distancing needs, countries under lockdown, stern travel restrictions and market turmoil has triggered supply chain disruptions, hurt service industries and hit demand. International Energy Agency (IEA) forecasts a decline in oil demand to the tune of 0.1mn barrels per day in 2020 vs 0.8mn b/d growth in 2019 (see chart). This will coincide with a surge in supply amidst OPEC+ price war, boding poorly for prices.

Yes Bank shares jump nearly 100% in three days

Shares of Yes Bank on Tuesday further jumped nearly 35 percent after Moody’s upgraded the company’s ratings.
   

Rallying for the third consecutive day, the company’s scrip zoomed 34 percent to Rs 49.75 on the BSE. On the NSE, it spiked by 34.77 per cent to Rs 50. The scrip has jumped nearly 100 per cent in three days.

Yes Bank shares had on Monday also jumped sharply by over 45 percent after the announcement of a restructuring plan. The rating agency upgraded the company’s ratings and also changed its outlook to positive.

Demand, supply-side impact to be more in FY21

On the demand side, inoperability analysis for three sectors namely: transport, tourism and hotels show significant impact on demand and hence output. On an aggregate basis, we estimate that the impact of a 5 percent inoperability shock could be 90 basis point on GDP from trade, hotel and transport and transport, storage and communication segment, that could be spread over FY20 and FY21, with a larger impact in FY21.

On the supply side, China is an important source of critical inputs for many sectors. Supply shock is akin to higher price of inputs which in turn affects the price of all the commodities up the supply chain.

The impact of supply perturbations in the system in terms of cost-price increase in output due to increase in prices of value-added input brought about by shutdown in China or assumed price escalation of 5 percent is maximum for chemical and chemical products, electrical and non-electrical goods, metals and metal products, textiles and transport equipment (7-8 percent increase in prices), said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.

Covid-19 could adversely affect output, prices

Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, said India has till date responded quite well to the COVID-19 crisis, though the financial markets have been significantly impacted.

Though India has already taken plethora of steps to prevent the spread of coronavirus, all eyes are now on the rise in active cases in the current week and next, as global experience shows the jump in second week of active cases is around 7 times compared to first week.

We thus expect aggressive social distancing to be implemented by Government and States immediately.

Markets volatile; Nifty down

#CNBCTV18Market | Market remains volatile, Nifty Bank slips 300 points from highs pic.twitter.com/pU9XJtRykr

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

RBI announces steps for tackling virus impact on economy

The Reserve Bank of India on Monday announced steps to tackle the impact of the coronavirus outbreak on the economy, but left interest rates unchanged, adding that it stands ready to take any further measures as necessary.

While some analysts said the gains on Tuesday were just a blip and investors were still in panic mode, others sounded hopeful of more government support to reduce the severity of the virus outbreak, which has wreaked havoc on businesses and supply chains.

“There is potential that the RBI might do more, and there is hope,” said Anand James, chief marketing strategist at Geojit Financial Services Ltd in Kochi.

Kotak Mahindra cuts lending rates

Kotak Mahindra Bank cuts lending rates by 5-10 bps across tenors w.e.f March 16 pic.twitter.com/4J2lrshEIz

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Coronavirus-hit markets brace for recession

The coronavirus shockwaves rippling through US stocks are forcing investors to contemplate outcomes more dire than a recession, including several quarters of declining economic activity, a credit crisis or even a depression.

The rising global toll from the pandemic and the uncertainty over how far it may spread has left investors and economists scrambling to gauge the financial fallout.

“This market looks like it has already priced in most of a garden variety recession,” said Frances Donald, global chief economist at Manulife Investment Management. “It is now on top of that having to price in some probability of a credit crisis.”

Yes Bank surges

#CNBCTV18Market | Yes Bank extends gains, up over 65% pic.twitter.com/GafsALlcSB

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Yes Bank continues to rally for 3rd day; shares jump nearly 35%

Shares of Yes Bank on Tuesday further jumped nearly 35 percent after Moody’s upgraded the company’s ratings. Rallying for the third consecutive day, the company’s scrip zoomed 34 per cent to Rs 49.75 on the BSE.  On the NSE, it spiked by 34.77 percent to Rs 50. The scrip has jumped nearly 100 percent in three days.
 

Yes Bank shares had on Monday also jumped sharply by over 45 percent after the announcement of a restructuring plan. The rating agency upgraded the company’s ratings and also changed its outlook to positive.

Nifty surges to touch 9,400-mark

#CNBCTV18Market | Sharp surge in market, #Nifty approaches 9400 pic.twitter.com/c5ucGGG6TH

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Sensex extends gains after weak start in opening session

#CNBCTV18Market | #Sensex extends gains, up more than 1,200 points from lows pic.twitter.com/5S6jZ0xUNa

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Sensex jumps nearly 500 points; Nifty tops 9,300-mark

Equity benchmark Sensex jumped nearly 500 points in early trade on Tuesday amid value-buying in recently-hammered stocks even as investors fretted over an impending economic global recession led by Covid-19 pandemic.

 On a net basis, foreign institutional investors sold equities worth Rs 3,809.93 crore on Monday, data available with stock exchanges showed.

 Tata Steel was the top gainer, followed by Maruti, Sun Pharma, HUL, ONGC and Reliance Industries, while HDFC twins, ICICI Bank, Kotak Bank and Titan were the top laggards

Nifty closed 6.4% lower month-on-month in February

The Nifty closed 6.4 percent lower MoM in Feb’ruary, mirroring the slide in the global markets on concerns about coronavirus spreading beyond China. Nevertheless, the MF space appeared to be relatively insulated with steady inflows and the contribution of systematic investment plans (SIPs) remaining stable at INR85.1b in the month (+5.2% YoY), according to Motilal Oswal Retail Research.

The month saw a notable change in the sector and stock allocation of funds. On an MoM basis, the weight of Utilities, Retail, Consumer, Healthcare and Telecom increased, while that of Capital Goods, Automobiles, Technology, Metals, PSU Banks Infrastructure and Oil & Gas moderated.

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Sun Pharma up 6%

#CNBCTV18Market | Sun Pharma up more than 6% ahead of board meet today; board was to mull a share buyback pic.twitter.com/xDNInAjjBH

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Rupee rises 25 paise to 74 against US dollar in early trade

The Indian rupee appreciated by 25 paise to 74 against the US dollar in early trade on Tuesday tracking positive opening in domestic equities and the Reserve Bank of India’s liquidity enhancing measures.

Forex traders said investor sentiments recovered after the Reserve Bank on Monday hinted at a rate cut at the next Monetary Policy Committee (MPC) meet on 3 April and announced more liquidity enhancing measures.

The RBI announced another round of $2 billion dollar-rupee swap on March 23 and up to Rs 1 lakh crore of long-term repo operations as and when required.

At the interbank foreign exchange the rupee opened at 74.16, then gained further ground and touched a high of 74.00 against the US dollar, registering a rise of 25 paise over its previous close.

Wall Street indices collapse

In overnight trade, Wall Street indices collapsed in their worst day since 1987, with the S&P 500 and Nasdaq dropping about 12 percent and the Dow sinking nearly 13 percent on new coronavirus (Covid-19) scare.

The number of deaths around the world linked to the virus has topped 7,000, after Italy announced a new surge in fatalities, with over 1,75,000 infections recorded globally so far.

In India, the number of infected cases stood at 125, as per the Union health ministry log.

Yes Bank surges 30% as Moody’s says outlook positive

Shares of Yes Bank climbed 30 percent in early trade on Tuesday after rating agency Moody’s upgraded the private lender’s outlook to positive (from negative) while also upgrading its rating by a notch.

Acting quickly on the fast evolving capital position under the RBI-mandated restructuring of Yes Bank, rating agency Moody’s on Monday upgraded its ratings with a positive outlook.

Sensex jumps over 400 points, Nifty above 9,300-mark in morning trade

Sensex returned to the green zone and is trading 473.50 points or 1.51 percent,  higher at 31,863.57 at around 10 am while the broader Nifty is up 150.30 points or 1.63 percent at 9,347.70, after gyrating over 1000 points in a highly volatile opening session.

In the previous session, the Sensex logged its second-biggest drop in absolute terms, plunging 2,713.41 points or 7.96 percent to finish at 31,390.07. Likewise, the Nifty slumped 757.80 points or 7.61 percent to end at 9,197.40.

Tata Steel was the top gainer, followed by Maruti, Sun Pharma, HUL, ONGC and Reliance Industries, while HDFC twins, ICICI Bank, Kotak Bank and Titan were the top laggards.

Philippines first country to suspend all financial markets

The Philippine Stock Exchange closed indefinitely on Tuesday while currency and bond trading were suspended, the first market shutdowns worldwide in response to the coronavirus, with authorities citing risks to the safety of traders.

The shutdown comes after some bourses around the world closed trading floors or paused trade after withering falls in market value, but it is the first blanket market halt.

New Zealand injects $7.3 billion stimulus in bid to save economy

New Zealand on Tuesday said it would pump $7.31 billion, or 4 percent of gross domestic product (GDP), into the economy to slow a contraction expected from business disruptions caused by the coronavirus outbreak.

The package was larger than that implemented in response to the global financial crisis and bigger as a proportion of GDP than those announced by countries like Australia and Singapore, Finance Minister Grant Robertson said in a news conference.

Pidilite surges more than 5%

#CNBCTV18Market | Pidilite surges more than 5% as crude slips to fresh 4-year low pic.twitter.com/BD56H0mS9A

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Rupee rises 23 paise to 74.02 against US dollar in early trade

The Indian rupee showed signs of recovery rising 23 paise to Rs 74.02 in opening trade. On Monday, it was on a downward spiral and plunged 50 paise to 74.25 against the US dollar as concern over the economic fallout from the coronavirus pandemic outweighed the US Fed’s emergency interest rate cut and the RBI’s liquidity enhancing measures.

Forex traders said the fall in the domestic unit was in line with other Asian peers amid mounting fears of a coronavirus-led economic slowdown. At the interbank foreign exchange market, the local currency opened at 74.10. During the day, it saw a high of 74.09 and a low of 74.35 against the American currency.

Indices up as market turns volatile

#CNBCTV18Market | Market moving higher in what seems to be an unpredictable & volatile session pic.twitter.com/7h221DnVqp

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Grasim Industries shares down 3%

Grasim Industries share price slipped 3 percent in the early trade on March 17 after CCI imposed a penalty on the company. At 09:23 hrs, Grasim Industries was quoting at Rs 561.30, down Rs 15.25, or 2.65 percent on the BSE.

The Competition Commission of India (CCI) has passed an order, imposing a penalty of Rs 301.61 crore on the company in respect of its domestic man-made fibre turnover.

Oil prices jump $1 as recent sharp falls draw investors

Oil prices rose more than $1 on Tuesday as the recent sharp falls due to the coronavirus pandemic encouraged bargain hunters to come forward, although the market remains volatile as the spread of the infection disrupts economies and hurts demand.

The United States has said it will take advantage of low oil prices to fill its Strategic Petroleum Reserve (SPR), and other countries and companies are planning similar measures to fill storage tanks.

Nifty recovers sharply

#CNBCTV18Market | Sharp recovery seen in market, #Nifty back above 9,200 pic.twitter.com/BGGJNgU5eD

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Stock markets open weak

After a positive start, the benchmark indices gave up all its gains on 17 March with Nifty around 9,100 level. 

The Sensex is down 298.17 points or 0.95 percent at 31091.90, and the Nifty down 73.40 points or 0.80 percent at 9124. About 359 shares have advanced, 434 shares declined, and 32 shares are unchanged.

Gold likely to trade higher: Expert

Gold prices are likely to trade higher from current levels as the Fed slashed rates back to near zero, restarted bond-buying and joined with other central banks. This step will infuse liquidity into financial markets and availability of money at a lower interest rate could support prices of safe-haven assets such as gold, said  Abhishek Bansal, Chairman & Managing Director, Abans Group.

Robust oil supply is likely to remain intact in the market as Saudi Arabia promised to increase production capacity and the United Arab Emirates plans to pump as much as possible next month. Oil prices will fail to sustain any pullback rally as long as the supply side remains robust, Bansal said.

The US travel ban on EU after WHO declaring coronavirus a pandemic along with OPEC oil war to keep prices in negative territory for the short term. EIA and OPEC have already reduced their forecast significantly and increasing oil inventory in the US by 7.7 million barrels to keep the supply side on higher-end and demand at a lower level for this quarter and the next.

Oil prices jumped $1 

Oil prices rose more than $1 on Tuesday as the recent sharp falls due to the coronavirus pandemic encouraged bargain hunters to come forward, although the market remains volatile as the spread of the infection disrupts economies and hurts demand.

Brent crude LCOc1 was up by 1.5%, or 46 cents, to $30.51 a barrel by 0206 GMT, after hitting a high of $31.25. US West Texas Intermediate (WTI) crude CLc1 rose 3.2 percent, or 92 cents, to $29.62, having come off a high of $30.21.

“Presumably, the market is getting supported by physical bargain hunters and short covering,” said Stephen Innes, chief markets strategist at AxiCorp.

Investors poorer by Rs 7.62 lakh crore as Sensex plunges

Investors’ wealth eroded by Rs 7.62 lakh crore on Monday as markets witnessed yet another sharp fall, with the Sensex plunging 2,713.41 points as coronavirus scare continued to hit market sentiment. The market capitalisation of BSE-listed companies dropped by Rs 7,62,290.23 crore to Rs 1,21,63,952.59 crore at the close of trade.

The drop in investor wealth was led by extreme weak broader market sentiment, where the Sensex witnessed another sharp fall after staging a strong comeback on Friday. The key index plummeted 2,713.41 points or 7.96 percent to close at 31,390.07.

World catches economic ‘cold’

There are significant unknowns over how long the economic ‘cold’ will last and how severe the damages of the virus will be on the economy. The latest Fed rate cut is accepted as no more than a short-term remedy to boost consumer confidence and spending. “We do recognize a rate cut won’t reduce the rate of infection,” Federal Reserve Chairman Powell said. “It won’t fix a broken supply chain. We get that; we don’t think we have all the answers, “Powell said, adding he hoped the rate cut could stem financial-market disruptions and speed a recovery once the epidemic is under control.

In the short term, the economic outlook is uncertain simply because lower rates are not necessarily suited to address evolving risks and pains to economic activity such as delayed shipments of goods from overseas amid growing supply chain disruption. You cannot ignore warnings from a large company like Apple about the impact of supply and demand issues. The company recently told its technical support staff that some of the essential iPhone parts would be in short supply for as long as two to four weeks, according to anonymous employees.”

Rupee opens high in opening session

#Rupee opens higher Vs yesterday's close pic.twitter.com/wyCfY7ezXS

— CNBC-TV18 (@CNBCTV18Live) March 17, 2020

Gold extends gains as investors choose to sell

Gold, which is normally bought as a safe-haven, extended declines on Tuesday as some investors chose to sell whatever they could to keep their money in cash. Oil futures rebounded in Asia, but downside risks remain due to an expected slump in global energy demand and Saudi Arabia’s plans to increase crude output to expand its market share.