Coronavirus pandemic continues to batter the global equity markets. The Indian market after trading in the green slipped into the red with Sensex down 815.32 points or 2.6 percent at 30574.75, and the Nifty tanked 232.80 points at 8964.60.
Bank Nifty shed over 2 percent dragged by IndusInd Bank and ICICI Bank which fell 5-6 percent followed by Federal Bank, HDFC Bank and IDFC First Bank. But YES Bank share price surged over 55 percent after Moody’s upgrade.
Going forward, a move below the level of 8,555 can lead to the next support of 8,458- 7,327 whereas if the index manages to close above 10,165 then the upside resistance is placed at 10,290 -11,095, said Amit Gupta, Co-Founder, and CEO, TradingBells.
The top gainers included Hindustan Unilever which jumped almost 6 percent after a significant drop in crude oil prices. Oil prices fell below USD 30 a barrel on March 16 as the worldwide coronavirus outbreak worsened over the weekend.
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Asian Paints share price also rose following slide in global oil prices.
Santosh Meena, Senior Analyst, TradingBells also said that fall in crude oil prices is always positive for the Indian economy but anecdotally market moves in the direction of crude oil prices because a sharp fall in crude oil prices always leads to worries of the global recession which is not good for the Indian market as well.
Hero MotoCorp share price was up 4 percent after Kota Institutional Equities upgraded the stock to an “add” from a “sell”. The brokerage firm has fixed the fair value of the stock at Rs 2,150, a 20 percent upside from the current market price.
“We upgrade the stock to ‘add’ from ‘sell’ on attractive valuations (11 times FY2022E core EPS). While the catalysts for near- term growth are absent due to impact on consumption because of Covid-19 and shift to BS-VI norms from April 2020, we believe growth will resume for the company from the second half of FY21 led by revival in rural demand,” Kotak said.
Share price of Power Grid was among the top Sensex gainers after the company approved the payment of interim dividend of Rs 5.96 per equity share of Rs 10 each at 59.6 percent of the paid up equity share capital for the financial year 2019-20.
Maruti Suzuki share price added over 2 percent after the company announced the expansion of its commercial network portfolio. The company said it has launched a BS-VI compliant CNG version of its multi-purpose van Eeco, priced between Rs 4.64 lakh and Rs 5.06 lakh.
“We think such panic bottoms are a great opportunity to buy quality stocks. The near term bounces will keep on happening, but eventually, volatility will subside and markets will give opportunities to “accumulate”. For investors, this is a buy on dips opportunity,” said Umesh Mehta, Head of Research, Samco Securities.
The top losers included IndusInd Bank, ICICI Bank and Bajaj Finance, each shedding over 4 percent followed by Tata Motors and HDFC.
Share price of IndusInd Bank was under pressure following the collapse of YES Bank. According to reports, the bank’s promoters, the Hinduja brothers, are fully backing the lender and attribute the latest decline in the stock to excessive speculative action.
After the Yes Bank write down of AT1 bonds, IndusInd Bank deferred a board meeting that was to discuss raising capital through these bonds, blaming the “current market conditions” for the deferral and said it was sufficiently capitalised.
Share price of Tata Motors shed 3 percent. The stock has been under pressure after it announced a drop in China sales due to coronavirus. The coronavirus significantly impacted China sales, with February retail down around 85 percent against the previous year, the company said in a release.
The volatility index is up 4.53 percent at 61.55 level.
The most active shares included Reliance Industries, YES Bank, State Bank of India, ICICI Bank and HDFC Bank.
As many as 465 stocks hit the lower circuit of BSE. These include Future Retail, Vakrangee, Indiabulls Ventures, IRCTC and Shilpa Medicare.
Over 526 stocks hit 52-week low on BSE. Among them were Zee Entertainment, Future Retail, Jubilant Life, Cyient, Mphasis, Mahindra CIE Automotive, Infosys, KPR Mills and L&T Finance Holdings among others.
Share price of Zee Entertainment tanked over 16 percent after ED summons promoters on loan from YES Bank. Enforcement Directorate asked Subhash Chandra of Essel Group to appear on March 18.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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