Daily Newsletter
NSE Intra-day chart (03 March 2020)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
DII Investments(Rs. Cr)
DateBuy ValueSale ValueNet Value
 
Market Commentary 04 March 2020
Benchmarks to get cautious start amid mixed cues from Asian peers

 

Indian equity markets snapped seven days losing streak on Tuesday, with Sensex and Nifty ending higher, after the Reserve Bank of India (RBI) said it is closely monitoring global as well as domestic situation regarding the impact of deadly coronavirus and ready to take necessary action to ensure orderly functioning of financial markets. After a fabulous start, indices remained in green, aided with Union Finance Minister Nirmala Sitharaman's statement that the direct tax dispute resolution scheme announced in Budget will be of great help to people as they will be able to save time and money spent in fighting cases. However, volatility hit over the markets during the afternoon deals, after the Organisation for Economic Cooperation and Development (OECD) lowered India's GDP growth forecast to 5.1%, from its earlier projection of 6.2%, for FY21 on concerns over the impact of deadly coronavirus on the domestic as well as the global economy. But, key benchmarks again gained the traction in the last hours of the trading session, after the Finance Ministry said that women account for over 81 per cent of the total beneficiaries under the Stand Up India scheme with loans worth Rs 16,712 crore sanctioned for them in nearly 4 years time. Finally, the BSE Sensex gained 479.68 points or 1.26% to 38,623.70, while the CNX Nifty was up by 170.55 points or 1.53% to 11,303.30.

 

The US markets ended deeply in red on Tuesday, after a volatile trading session, as the Federal Reserve announced a surprise decision to cut interest rates by 50 basis points to 1 to 1-1/4 percent. The Fed was widely expected to wait until its next monetary policy meeting later this month to announce the rate cut. The move was partly seen as an effort to calm the markets in the wake of the coronavirus outbreak but may have served to raise concerns about how severely the central bank expects the epidemic to impact the economy. In an accompanying statement, the Fed said the fundamentals of the US economy remain strong but noted the coronavirus poses evolving risks to economic activity. The central bank added that it is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy. However, Fed Chairman Jerome Powell indicated that additional stimulus would come in the form of further rate cuts rather than tools like quantitative easing. The surprise move by the Fed came shortly after finance chiefs from the world's largest economies released a statement pledging to use all appropriate policy tools to address the economic fallout from the deadly coronavirus outbreak. The emergency rate cut, the first since the financial crisis, also came after President Donald Trump ramped up pressure on the Fed to lower rates. In addition to the US, a number of countries have already acted independently, including the Reserve Bank of Australia and Malaysia's central bank, which both reduced their benchmark interest rates Monday, citing coronavirus as the reason. Meanwhile, the European Central Bank is working on measures to provide liquidity to businesses harmed by the outbreak. 

 

Crude oil futures ended higher on Tuesday and off the day's best levels, while Brent crude settled lower on the surprise move by the Federal Reserve to cut rates by as much as 50 basis points, and more importantly, nearly two weeks ahead of the scheduled monetary policy meeting, has raised fears about the magnitude of the impact of the coronavirus outbreak on the global economy. Oil prices had traded sharply higher earlier in the session amid expectations the Organization of the Petroleum Exporting Countries (OPEC) and allies will decide to deepen production cuts during their meeting this week. The OPEC and its allies are scheduled to meet this Thursday and Friday in Vienna. Currently, the group is producing 1.7 million barrels less per day. Crude oil futures for April gained 43 cents or about 0.9 percent to settle at $47.18 a barrel on the New York Mercantile Exchange. However, May Brent crude declined 4 cents or 0.08 percent to settle at $51.86 a barrel on London's Intercontinental Exchange.

 

Indian rupee came under pressure for the third consecutive trading session and went below the 73 a dollar mark on Tuesday despite hopes that policymakers across the world would take measures to ease the economic fallout from the coronavirus outbreak. Finance ministers and central bank chiefs from G7 countries will hold talks later in the day to discuss ways to coordinate their responses to cushion the epidemic's impact on the global economy. The rupee sentiment got hit as the Organisation for Economic Cooperation and Development (OECD) lowered India's GDP growth forecast to 5.1%, from its earlier projection of 6.2%, for FY21 on concerns over the impact of deadly coronavirus on the domestic as well as the global economy. On the global front, safe-haven Japanese yen gained on the dollar on Tuesday, as the market tempered hopes for global monetary easing with worries about its scale and efficacy in combating the economic damage from the coronavirus outbreak. The last traded price of rupee was 73.30, 54 paise weaker from its previous close of 72.76 on Monday.

 

The FIIs as per Tuesday's data were net sellers in the both equity and debt segments. In equity segment, the gross buying was of Rs 9273.95 crore against gross selling of Rs 9574.56 crore, while in the debt segment, the gross purchase was of Rs 1957.45 crore with gross sales of Rs 3940.55 crore. Besides, in the hybrid segment, the gross buying was of Rs 13.72 crore against gross selling of Rs 10.17 crore.

 

The US markets ended lower on Tuesday after the Federal Reserve cut interest rates in an emergency move to shield the US economy from the impact of the coronavirus. Asian markets are trading mixed in early deals on Wednesday following sell-off on Wall Street overnight. Indian markets ended higher with gains of over a percent on Tuesday, amid hopes of policy easing by major central banks of the world to address the economic fallout from the spreading coronavirus. Today, the markets are likely to get a cautious start amid mixed cues from Asian peers and ahead of India Service PMI numbers for February to be released later in the day. Traders will be concerned with the government data showing that foreign direct investment (FDI) into India dipped marginally by 1.4% to $10.67 billion (about Rs 76,800 crore) during October-December period of 2019-20. Inflow of FDI during October-December of 2018-19 stood at $10.82 billion. Though, some encouragement may come later in the day as the Reserve Bank of India (RBI) said it stands ready to safeguard the country's banking system from financial and market risks stemming from the spread of Covid-19, citing expectations of coordinated policy action by central banks around the world amid threats to global demand and currency movements. Some support may also come as Minister of State for Agriculture Kailash Chaudhary expressed confidence of achieving the target of doubling farmers income by 2022. Traders may take note of report that the government has collected over Rs 7.52 lakh crore as direct taxes till January 31 of the current fiscal. Meanwhile, Finance minister Nirmala Sitharaman has introduced the Banking Regulation Amendment Bill in the Lok Sabha. There will be some buzz in the auto stocks as parliamentary panel suggested a lower GST rate for the automobile segment at least till the revival of the sector and uniform road tax across all states against the backdrop of negative growth in the automobile production since July 2018. Sugar stocks will be in limelight as the government said the country's total sugar production is estimated to decline by 18 percent to 27.3 MT in the ongoing 2019-20 season on fall in sugarcane output in key growing states. There will be some reaction in Cement stocks with ICRA's statement that the domestic cement industry's capacity utilisation is likely to moderate in FY20 to sub-70% levels. It added that the demand revival trend witnessed in recent months is likely to continue in the fourth quarter of FY20. 

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

11,303.30

11,189.82

11,379.52

BSE Sensex

38,623.70

38,259.25

38,871.19

                                                 

Nifty Top volumes

 

Stock

 

Volume

Previous close (Rs)

 

Support  (Rs)

 

Resistance (Rs)

 

(in Lacs)

Yes Bank

1,642.68

31.20

30.03

32.83

Tata Motors

867.66

130.35

126.60

132.75

SBI

619.49

289.85

285.30

294.40

Vedanta

369.75

119.55

115.13

122.48

ONGC

240.98

93.35

90.67

95.02

 

  • Infosys has collaborated with IBM to help enterprises accelerate their digital transformation journey using the IBM public cloud. 
  • NTPC including its joint venture and arms has achieved its annual commercial capacity addition target of 5,290 MW for 2019-20. 
  • Bharti Airtel has paid Rs 1,950 crore to DoT towards its deferred spectrum dues. 
  • Eicher Motors and Volvo Group's JV -- VECV has unveiled its entire BS-VI range of trucks and buses at its Pithampur manufacturing facility in Indore, ahead of the April 1 deadline of the implementation of the new emission norms.
News Analysis