The Dow Jones Industrials shed 800 points on Monday as investors scurried to safer assets after a sharp rise in coronavirus cases outside China fueled fears of a bigger impact to global growth.
Gold rose to a seven-year high and the inversion between the 3-month and 10-year U.S. Treasury yields deepened as a rise in cases in Iran, Italy and South Korea over the weekend fanned fears of a pandemic. An inversion of the curve is a classic recession signal.
What's next for D-Street after Monday's 807-point fall?
Nifty formed a Bearish Marubozu candle on the daily chart, indicating complete dominance of the bears throughout the day. The index breached a major support at 11,900 level and closed below the 100 DEMA by declining 250 points intraday. Going forward, the ongoing correction may continue and take Nifty towards its next support at 200 EMA, which is placed around 11,700 level, while the resistance shifted lower to the 12,000 – 12,050 zone
The bears were on the top of the trade and hammered the market hard. Bears are having tailwinds as far as international cues are concerned. Market breadth was sharply negative. Near term, the market has strong momentum on the downside and recoveries are unlikely to sustain as and when they come. Traders should look to have a ‘sell on rise’ approach. The 11,800 level is the immediate downside support, which if broken Nifty is likely to test 11,600. Support: 11,800-11,600 & Resistance: 12,000-12,100
- Manav Chopra, Head Research - Equity, Indiabulls Ventures
The market plunged following jittery global cues amid fear of deepening adverse economic impact of coronavirus. We expect the market to be choppy in the near term as global sentiment continued to remain muted. In addition, F&O expiry could also induce some volatility during the week. On an optimistic note, any positive outcome from the US president’s India visit in terms of strategic partnership or trade deal could possibly cheer the market
- Ajit Mishra, VP - Research, Religare Broking
Demand for safe haven assets spiked as fresh coronavirus cases in South Korea and Italy indicated that business impact could be higher than thought earlier. The Trump-Modi meet is not providing clues to the market regarding trade deal, but the market is hoping for some cues
- Vinod Nair, Head of Research at Geojit Financial Services
CLOSING BELL: Sensex nosedives 807 pts as virus spread triggers global selloff, Nifty below 11,850; VIX spikes 26%
All Sensex constituents trade in the red as index falls 850 points
A jump in number of coronavirus cases outside China hit European shares on Monday, as investors feared the outbreak will take a bigger toll on global growth than anticipated.
The pan-European STOXX 600 tumbled 2.5 per cent by 0816 GMT, on pace for its biggest percentage loss since October, with all the major regional indexes down over 2 per cent.
GAIL to invest Rs 1.05 lakh crore to create infra for gas-based economy
Price as on 24 Feb, 2020 02:10 PM, Click on company names for their live prices.
Bharti Infratel extends deadline for merger with Indus Towers by 2 months
Bharti Infratel on Monday extended the deadline for its merger with Indus Towers by two more months to April 24, but cautioned that final call on scheme implementation will be taken by the board based on assessment of telecom crisis and its impact.
Oil prices slide on demand concerns as virus spreads globally
Oil prices tumbled by 3 per cent on Monday, as the rapid spread of a coronavirus in several countries outside China left investors fretting about a hit to demand, Reuters reported. Brent crude was down $1.78, or 3%, to $56.72 a barrel by 0755 GMT, after falling to an intraday low of $56.53 earlier. U.S. crude futures fell by $1.53, or 2.9%, to $51.85.
Upon listing, debutante SBI Cards & Payment Services (SBI Card) could command a market value higher than 16 Nifty stocks as of today.
The IPO is expected to be priced in the Rs 750-755 range. At the upper limit of this price band and including the fresh issue, SBI Cards may command a market capitalisation of just over Rs 70,000 crore on listing. Grey market is valuing the SBI subsidiary even higher at Rs 1 lakh crore.
GMR Infra shares soar over 12% on stake sale in airport business
Price as on 24 Feb, 2020 12:55 PM, Click on company names for their live prices.
Bata, Jubilant Food, Nippon India AMC in FTSE All-World, Global Equity Series list
Following a superlative performance by Bata India, Jubilant FoodWorks and Nippon Life India Asset Management, the FTSE in its latest March 2020 Semi-Annual review considered these companies for both FTSE All-World and FTSE Global Equity Series list.
Shares of Nippon Life India Asset Management soared 183 per cent to Rs 441.70 on February 20 this year against Rs 155.90 on the same day last year. Bata India and Jubilant FoodWorks gained 42 per cent and 45 per cent, respectively, during the same period. On the other hand, the benchmark BSE Sensex advanced 15 per cent.
The FTSE Global Equity Index Series covers securities in 49 different countries and is divided into developed, advanced emerging and secondary emerging segments.
Global shares drop, gold surges as investors scurry for safety
Global shares and oil slid on Monday while safe-haven gold surged as the spread of the coronavirus outside China darkened the outlook for world growth with infections and deaths rising in South Korea, Italy and the Middle East, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan was off 1.9% at its lowest since early February.
Gold prices jump 1% on worries spread of coronavirus
Gold futures for April delivery rose nearly 1 per cent in Monday’s trade amid concerns over the spread of coronavirus outside of China and its impact on the global economic growth.
At 9.07 am, April gold futures were trading 0.87 per cent higher at Rs 43,037 per 10 grams on MCX.
Silver futures for April delivery were ruling at Rs 48,615 per 1 kg on the exchange.
IRCTC retreats after logging new high in the previous session
Price as on 24 Feb, 2020 11:57 AM, Click on company names for their live prices.
JUST IN |US President Donald Trump arrives in India
84 stocks hit 52-week lows on NSE
Around 84 stocks fell to touch their 52-week lows on NSE in Monday's session.
Among the stocks that touched their 52-week lows were Hero MotoCorp, CSB Bank, GIC Housing Finance, KDDL, Sterling And Wilson Solar and Rane Holdings.
Larsen & Toubro, NBCC, Sobha, DB Corp, Shemaroo Entertainment and BASF India also featured among the stocks that touched their 52-week lows on NSE.
Infra stocks slip; BHEL down nearly 2%
Shares of infrastructure companies were trading in the red in Monday's afternoon session.
Shares of CG Power & Industrial Solutions (down 3.59 per cent), NBCC (India) (down 2.09 per cent), IRB Infrastructure Developers (down 1.72 per cent), CESC (down 1.6 per cent), Bharat Heavy Electricals (down 1.57 per cent), Larsen & Toubro (down 1.39 per cent), Bharti Airtel (down 1.38 per cent), Power Grid Corporation of India (down 1.37 per cent), Vodafone Idea (down 1.14 per cent) were the top losers.
China says new coronavirus cases drop to 409 on Feb 23 but deaths jump
Mainland China had 409 new confirmed coronavirus cases on Sunday, the National Health Commission said on Monday, down from 648 reported a day earlier. The number of new deaths, however, rose to 150 from 97 over the same period, it said in a statement. (Source: Reuters)
Shares of Aurobindo Pharma dived nearly 18 per cent in Monday’s trade after the USFDA reopened its investigation on Unit-4 manufacturing facility, days after it granted Voluntary Action Initiated (VIA) for the same.
The revocation of VAI seems almost like a warning letter.
Kotak Institutional Equities The development is unprecedented, given that the rescindment was virtually within three days of the VAI grant, and we go back to our base assumption of an OAI status for Unit-IV. We expect the stock to react sharply, particularly, given the 20 per cent stock price rally on the back of the VAI announcement.
While we are not sure of the exact reasons for the rescindment, it can be a simple case of miscommunication/misinterpretation, among other reasons. At this point, it is unclear by when Unit IV will be reclassified, as the mandatory 90-day period already seems to be over (Inspection ended on November 13, 2019). This brokerage expects the stock to remain under pressure as it lowered its PE multiples for the stock to largely account for the heightened regulatory risk.
YES Bank drops 4%, recovers as Hinduja Group looks to pick up stake
Shares of YES Bank, which fell nearly 4 per cent in Monday's morning session due to weakness in the broader market, cut losses on reports that Hinduja Group is partnering with private equity firm Cerberus Capital Management LP to pick up a stake in the bank.
Pre-open session: Sensex drops 100 points, Nifty below 12,050 ; rupee at 71.87 against dollar
Singapore trading sets stage for gap-down start
Nifty futures on the Singapore Exchange traded 96 points, or 0.80 per cent, lower at 11,938, indicating a gap-down start for Dalal Street.
Tech view: Nifty struggles with 50-DMA
The index on Thursday faced selling pressure around 12,150 level, as it eventually formed a bearish candle on the daily chart. The index struggled to get past its 50-day moving average for two sessions. But it formed a higher high and low on the daily chart and showed encouraging signs on the weekly charts that made analysts believe that the bias may remain positive for the index.
Virus spread triggers selling in Asia
Global shares extended losses on Monday as the spread of the coronavirus outside China accelerated with infections jumping in South Korea, Italy and the Middle East, in a worrying new development in the outbreak. In a sign of panic, E-minis for the S&P500 dropped 1 per cent in early Asian trades while Nikkei futures slipped more than 1 per cent too. Australia's benchmark index slid 1.6 per cent while New Zealand was down about 1 per cent. South Korea's KOSPI index fell 2.2 per cent.
Wall Street stocks fall on renewed virus fears
Wall Street continued to tumble Friday amid renewed fears that the virus outbreak in China will have a real impact on companies that depend on goods from the Asian manufacturing hub. The benchmark Dow Jones Industrial Average fell 0.8 percent to close the week at 28,992.41. The broad-based S&P 500 lost 1.1 percent to end at 3,337.75, and the tech-rich Nasdaq dropped 1.8 percent to 9,576.59.
Gold prices jump to 7-year high
Gold prices rose more than 2 per cent to their highest in over seven years, as a spike in coronavirus cases beyond China pushed investors to take refuge in the safe-haven metal. Spot gold rose 1.2 per cent to $1,662.37 per ounce, having touched its highest since February 7, 2013 at $1,678.58 earlier in the session.
Crude oil prices fall on demand concerns
Oil prices tumbled more than 2 per cent as investors worried about a hit to demand from the coronavirus outbreak, which is spreading rapidly outside China, Reuters reported. Brent crude fell by $1.50 or 2.5 per cent to $57.00 a barrel. US crude futures fell by $1.26 or 2.3 per cent to $52.12.
G20 eyes impact of virus outbreak on growth
Finance chiefs of the world's top 20 economies vowed to monitor the impact of the coronavirus outbreak on global growth and act if needed, as they said loose monetary policy and easing trade tensions would prompt a pick-up in 2020 and 2021, Reuters reported.
US Prez Trump to visit India today
Ahead of his visit to India US President said the two countries could make a "tremendous" trade deal. This may build market expectations a bit. Trump and the First Lady Melania Trump will travel to Ahmedabad, Agra and New Delhi on February 24 and 25.
FIIs buy Rs 1,495 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,495.25 crore on Friday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 699.62 crore, data suggests.
Sensex, Nifty last week
This week gone by saw stock investors stay cautious about the spread of coronavirus, its impact on the global economy and crude oil prices, and the fluctuating rupee-dollar exchange rate. For the week, BSE Sensex declined 87.62 points, or 0.21 per cent, to 41,170, while NSE barometer Nifty dropped 32.60 points, or 0.27 per cent, to 12,080.
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