Indian equity bourses settled
with deep cuts on Monday's trading session. After a weak start, indices
remained under a grip of bears throughout the day, as think tank National
Council of Applied Economic Research (NCAER) pegged the India's economic growth
for the current fiscal at 4.9%, a tad down from 5% estimated by the National
Statistical Office (NSO). Market participants were seen taking note of the
retirement fund body, EPFO's latest Provisional Estimate of Net Payroll report
showing that India created 1008600 new jobs in the month of December 2019 as
against revised figure of 1009238 in November 2019. Losses got intensified over
the Dalal Street in the last leg of the trade, on the back of weak cues from
the global markets. Domestic sentiments remained pessimistic, as Former RBI
governor C Rangarajan said the Reserve Bank alone can not contain inflation as
supply-side shocks are needed to be managed by the government. The street paid
no heed towards the industry body Assocham's statement that Indian industry and
trade, including pharmaceuticals, are ready to manage the evolving coronavirus
situation without causing any major impact on the supply chain and no major
challenge is foreseen in the near term. Finally, the BSE Sensex slipped 806.89
points or 1.96% to 40,363.23, while the CNX Nifty was down by 251.45 points or
2.08% to 11,829.40.
The US markets ended deeply in
red on Monday, extending the notable pullback seen over previous session, as
the spread of the COVID-19 illness beyond China raised worries that the hit to
overseas economic growth could be more persistent than investors expected,
hampering the prospects for a global recovery in 2020. South Korea announced a
total of 231 new coronavirus cases, leading the government to raise the
coronavirus alert to its highest level. A jump in confirmed coronavirus cases
in Italy as well as new cases in Middle East countries like Iraq and
Afghanistan also added concerns about the outbreak escalating into a pandemic.
Meanwhile, the World Health Organization said it is worried about the growing
number of cases without any clear link to China. In the US, there are now 53
confirmed cases of COVID-19, as more passengers who returned from the Diamond
Princess cruise ship tested positive for the virus, according to an update from
the Centers for Disease Control and Prevention. Besides, the International
Monetary Fund warned the virus outbreak could reduce global economic growth by
0.1% this year, and drag China's annual growth 0.4 percentage points lower than
January estimates.
Crude oil futures ended lower
with cut of over three and half percent on Monday on rising concerns about the
outlook for energy demand due to the rapidly spreading coronavirus outside
China. The number of new cases of coronavirus infection is rising in South
Korea, Iran, Afghanistan and Italy. South Korea has raised its coronavirus
alert, following a rapid spike in cases over the weekend. Reports say the total
number of cases so far in South Korea has risen to 763. Italy became Europe's
epicenter for coronavirus cases over the weekend. Iran has confirmed an uptick
in infections. The virus has now killed 2,592 people in China, which has
reported 77,150 cases. The virus has now killed 2,592 people in China, which
has reported 77,150 cases. Crude oil futures for March dropped $1.95 or 3.7
percent to settle at $51.43 a barrel on the New York Mercantile Exchange. April
Brent crude fell $2.20 or 3.8 percent to settle at $56.30 a barrel on London's
Intercontinental Exchange.
Indian
rupee tumbled considerably against the US dollar on Monday, due to increased
demand of the greenback from the importers and the banks. Investor sentiments
remained fragile amid coronavirus fears. China's death toll from the new
coronavirus rose to 2,592 on Monday. Traders were also concerned as think tank
National Council of Applied Economic Research (NCAER) pegged the India's economic
growth for the current fiscal at 4.9%, a tad down from 5% estimated by the
National Statistical Office (NSO). Also, weak trend at Dalal Street coupled
with US dollar's gain against other currencies overseas weighed on the local
unit. On the global front, US dollar firmed against its major counterparts in
the Asian session on Monday, as a rise in the number of coronavirus cases in
the north of Italy raised the appeal of safe-haven assets. The last traded
price of rupee was 71.98, 34 paise weaker from its previous close of 71.64 on
Thursday.
The
FIIs as per Monday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
7346.06 crore against gross selling of Rs 6505.21 crore, while in the debt
segment, the gross purchase was of Rs 2119.03 crore with gross sales of Rs
3236.74 crore. Besides, in the hybrid segment, the gross buying was of Rs 5.26
crore against gross selling of Rs 7.61 crore.
The US markets settled lower on
Monday, with losses of over 3%, as investors worry that the spread of a viral
outbreak that began in China will weaken global economic growth. Asian markets
are trading mixed in early deals on Tuesday amid concerns authorities around
the world are struggling to keep the coronavirus from spreading. Indian markets
ended sharply lower on Monday, in line with global markets as world growth
outlook dampened following a surge in coronavirus cases outside China. Today,
the markets are likely to get slightly positive start amid sharp fall in crude
oil prices overnight. Sentiments will be getting some encouragement with the
Reserve Bank of India (RBI) Governor Shaktikanta Das' statement that there is
space for further rate cuts despite upside risks to the inflation outlook. Some
support will also come with chairperson of the National Committee on Financial
Inclusion and Literacy at Niti Aayog Bindu Dalmia's statement that the
government's target of achieving a $5 trillion economy by 2024-25 sounds too
idealistic. She added that the target has been so set to raise the bar of
India's economic performance. Though, there may be some cautiousness with mixed
cues from Asian peers and sell-off in the US markets overnight. Traders may
take note of RBI Governor Shaktikanta Das' statement that generalised loan
waiver is credit negative which undermines the credit culture in the system. He
asserted that the relief related to agriculture loans should be a targeted one.
Meanwhile, markets regulator SEBI has reviewed the margin framework for cash
and derivatives segments, in order to bring more efficiency in the risk
management system. Telecom stocks will be in focus amid report that the
government has asked telecom companies to submit AGR self-assessment documents
that form the basis of their statutory dues calculation. There will be some
reaction in power stocks with ratings agency ICRA's statement that the outbreak
of deadly coronavirus poses concern for domestic solar developers and original
equipment manufacturers (OEMs) due to disruption in supply chain for key
components used for manufacturing solar modules.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,829.40
|
11,757.68
|
11,956.83
|
BSE Sensex
|
40,363.23
|
40,100.72
|
40,831.37
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,058.52
|
34.95
|
34.10
|
35.85
|
SBI
|
452.74
|
322.95
|
319.43
|
328.88
|
Tata Motors
|
397.06
|
150.65
|
148.20
|
154.50
|
Vedanta
|
226.67
|
133.20
|
130.35
|
138.00
|
ONGC
|
201.68
|
98.05
|
96.00
|
101.30
|
Tech Mahindra has entered into a collaboration with Ahlstrom-Munksjo to enable digital transformation with SAP's S/4HANA.
TCS has sought government nod to set up special economic zones for IT sector in Uttar Pradesh.
Maruti Suzuki India has revealed the prices of the all new Vitara Brezza, starting from Rs 7.34 lakh (ex-showroom, Delhi), which was unveiled at the Auto Expo 2020.
Reliance Retail, the retail arm of Reliance Industries, has
topped the list of 50 fastest-growing retailers globally between FY2013-2018 in
the Deloitte's Global Powers of Retailing 2020 index.