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D-Street headed for Monday mayhem; Govt may unveil package for India Inc today & more

04:24 Min | March 23, 2020, 9:14 AM IST
Tune in! Your daily digest of market news, views and cues in today's session.
Hello There! Good Morning. Welcome to the ETMarkets Morning podcast. This is Saloni Goel from ETMarkets.com, and here is all the news you need to start your day

The Headlines:

>> D-Street looks headed for another Monday mayhem
>> Many stocks face F&O ban post Sebi curbs
>> Govt likely to unveil package for India Inc today
>> Tata Power strikes deal with states on Mundra power

And We have more. Stay with us.

Let’s first have a quick glance at how the markets are looking like...

Nifty futures on the Singapore Exchange traded over 1,000 points down at 7am (IST), signalling another major selloff on Dalal Street. Elsewhere in Asia, shares shares slid on Monday as more countries shut down in the fight against the coronavirus.

>> MSCI's broadest index of Asia-Pacific shares outside Japan lost 2 per cent, with South Korea badly hit. The commodity-heavy Australian market shed 5 per cent. But Japan's Nikkei added 0.8 per cent.

>> US stocks plunged 5% on Friday. Dow fell 913 points, or 4.55 per cent, to 19,173, the S&P500 index lost 104 points, or 4.34 per cent, and Nasdaq 271 points, or 3.79 per cent. Friday's drop left the Dow down 3 per cent from when President Trump took office in January 2017. This morning, e-Mini futures for the S&P500 dived 5 per cent at the open.


>> The rupee gave up its day's gains to settle 8 paise lower at a fresh life-time low of 75.20 against the US dollar on Friday as forex market continued to grapple with economic uncertainties due to fast-spreading coronavirus pandemic.

LET ME NOW quickly GO OVER the top news we are tracking this morning.

The decision by market regulator Sebi to lower position limits that can be taken in the futures and options market will result in several stocks moving into the ban period from Monday, said analysts. These include stocks such as Adani Enterprises, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, Just Dial, NCC, Yes Bank, PVR and Punjab National Bank, among others. Sebi has increased margin requirements and capped derivatives exposure in a bid to curb volatility and short-selling in the equity markets.

Large swathes of the country will be on lockdown from Monday amid alarm over Covid-19 cases rising to 396 on Sunday from 315 on Saturday — the biggest jump in a day — and the death toll going to seven from four. Delhi, Maharashtra, Andhra Pradesh, Telangana, Punjab, Rajasthan and Uttarakhand will be shut until March 31 — and more states could follow. West Bengal’s lockdown will last until March 27 while UP announced a closure in 16 districts until March 25. Chhattisgarh and Bihar announced a shutdown in all urban areas until March 31. Passenger trains, interstate buses and suburban and metro trains have been halted until March 31. State borders have been sealed.

Finance minister Nirmala Sitharaman could announce measures to deal with the economic impact of Covid-19 in her reply to the Finance Bill on Monday. She could also propose a threshold of Rs 15 lakh for the taxation of the income of nonresidents who don’t pay tax in other jurisdictions, taking the sting out of the contentious budget proposal. The government is also seeking to raise special additional excise duty on petrol to Rs 18 per litre and on diesel to Rs 12 per litre, raising revenue for relief measures

Mutual funds have approached RBI seeking liquidity support fearing sharp redemptions from bond funds — mainly liquid schemes — in the coming days as risk aversion due to the coronavirus fright has sparked the flight of money from these products to bank deposits. With several liquid funds posting losses following the spike in bond yields triggered by the selloff in the markets, several investors in this scheme category — mostly corporates who park their idle money there — have already begun pulling money out of these products, said industry officials.


LIC EXEMPTS PREMIUM DUES…LIC has exempted all premium dues for its customers until April 15 on account of the curbs placed by the government to contain the spread of Covid-19, with the disruptions affecting the finances — and the ability to transact — of thousands of policyholders across the country. The state-owned insurance behemoth that dominates three-fourths of the life insurance market said on Sunday that the decision was taken “in view of prevailing extraordinary circumstances in the country on account of Covid-19.”


>> Amid protests from the minority shareholders and a telling rout in stock prices, the Ashok Leyland board has decided to acquire a lower stake in its subsidiary, Hinduja Leyland Finance, slashing the investment to less than a third of the ?1,200 crore initially proposed.

>> Maruti Suzuki India (MSI), the country’s largest carmaker, said it was suspending production at its facilities in Haryana “till further notice”

>> Tata Power has reached a resolution on compensation with states buying electricity from the Mundra UMPP – a major breakthrough that ends the decade-long deadlock that threatened to shut down the imported coal fired 4,000-mw plant.

>> Godrej Consumer (GCPL) and ITC on Sunday slashed the price of their entry-level hand sanitizer packs under Godrej Protekt and Savlon, respectively, by nearly 66 per cent, in response to Hindustan Unilever (HUL) reducing its prices.

>> Mahindra & Mahindra (M&M) said it had suspended manufacturing at its Nagpur plant and would halt production at Chakan (Pune) and Kandivali (Mumbai) from Monday.

LASTLY a look at OIL,

>> Crude oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US. WTI traded 1.5 per cent lower at $22 a barrel, while Brent fell 4.9 per cent to $25

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