Markets end the day in Green:
In a sensational re-bound, Indian markets have corrected from what looked like a 10% rout at the start of the session.
Post end of trading hours, the barometer on the thirty scrip sensitive BSE Sensex read - 4.04% or 1,325.34 points up at 34,103.48. The broader NSE Nifty50 read 10,023.65, up by 4.52%.
At the end of trading hours, the market capitalisation on the BSE was reported at Rs 129.26 lakh crores, up by 3.56 lakh crores. The market capitalisation dipped to Rs 125.70 lakh crores on the BSE.
On the broader side, most indices traded to moderate green. Smallcap indices traded in a gain of 0.73 - 1.8 percent. Telcom (up by 6.39%) and Metal stocks were among the pick of the sectoral specifics. 1,244 scrips advanced while 1,143 stocks declined. 13 stocks recorded their 52 week high while 1,340 recorded their 52 week lows.
The bearish trend and volatility exists with the India Vix reflecting an upward trend of 24.43 at 51.22 points. The India VIX attained its 52 week high of 59.4825 in the trading session on Friday.
Currency markets: By Rahul Gupta, Head of Research for Currency at Emkay Global Financial Services:
"Due to coronavirus pandemic, there is a lot of panic and fear in the market and no one knows how to respond. The best response in such a market is flight from riskier assets, that’s what we saw today in Nifty, it plunged sharply until it hit lower circuit. As there is no cure to this virus, there is a lot of disappointment in the equity market which is getting reflected in INR and it breached record low of 74.4850. If the coronavirus cases continue to increase in India and on the global front then we can see further appreciation in USD/INR spot towards 74.80 level. However, 74.50 will act as a crucial resistance, only a sustenance above it may take prices towards 74.80, otherwise we can see a reversal towards 73.20. Right now, the only respite to the market is RBI along with global central banks infusing liquidity."
The trends this week, by Sanjeev Zarbade, VP PCG Research, Kotak Securities
"This week will go down in history as one of the worst weeks for global markets. Consider this, the US market had declined 18% in just the first four days of trading. Sensex closed 9% lower for the week but not before being locked at the lower circuit on Friday. Markets have been battered by the potential economic impact on account of various preventive travel measures by major countries. ONGC, IndusInd Bank and State Bank of India were among the major losers in the BSE-30 Index. FPIs sold equities worth US$2.3 bn over the past five trading sessions while DIIs bought US$1.8 bn worth of equities in the same period."
On DIIs & Currency: By S Hariharan, Head - Sales Trading, Emkay Global Financial Services:
"When one parses the backdrop of foreign investors’ net sell flow for the last 2 sessions, it is seen that after adjusting for passive sell flows of $200 mn and arbitrage related sell flows of $500 mn, the net flow from active investors has been rather muted at $250 mn out of the total $ 1 bn worth selling. Domestic funds have been buyers worth $900 mn in the meantime. All considered, the tilt of actively managed funds has been to buy into this correction. From a domestic liquidity standpoint, we have had RBI adding $2 bn of liquidity via dollar swaps, and a return of $15 bn worth of funds locked up in SBI Card IPO ($10 bn for QIBs and $6 bn for non-institutional participants) in the last 2 days, hence, INR has been largely stable despite volatile market moves in equities. The prospect of concerted government and central bank action over the weekend to arrest a self-sustaining cycle of fear acted as a trigger for short covering this morning in global equities, while aggressive cash deployment by domestic funds has continued today. From a technical standpoint, 9000 was an important pivot point on Nifty, which has held on as support for now, and despite re-tests if this level were to hold over the coming month, it would represent a durable bottom for the medium-term."
Here's the trading session through the day:
Sensex back in green:
Domestic Indices pared gains after what appeared as a shock induced session. At 13:52 hours, Sensex was 4.63% or 1519.03 points higher at 34,297.17 in intra-day. The Nifty 50 is back to levels of 10,000. Nifty gained 4.41% to quote 10,013.05. The Nifty50 had slumped to 8,555.15 in the morning trade session.
The Sensex recorded its 52 week low of 29388.97 in the morning session.
The trend is still bearish though with only 11 scrips hitting 52 week highs as against 1,283 scrips recording a 52 week low. 1,173 stocks advanced on the BSE against 1,082 declines. All indices on the BSE were trading in the positive. All sector indices recovered the losses of the morning session. BSE Finance is up by 6.02 percent in the trading session so far. Telecom stocks are up by 5.92 percent.
Indian equities in Tik-Tok mode:
The Sensex has moved back from mild greens to a red. At 11:30 AM, the thirty scrip sensitive index posted a 222.14 point or 0.68% intra-day loss at 32,556.00. The Nifty50 is out of sub-9,000 danger levels- the barometer read 9,508.15 - 83.95 points or 0.98% down in trade so far.
Live: Rupee recovers by 50 paise
The Indian Rupee that traded to a high of 74.577 in pre-morning trade, recovered by 50 paise according to latest data. The previous low that the Rupee hit was at 74.48 levels during October'18.
Trading Resumes: Greens back in action
Recovery is seen. At 10:50 AM, markets recover losses. S&P BSE Sensex is in green with a 6.60 point or 0.02% gain. Sensex recovers to 32,841.82. DIIs seem to be in action lifting-up from where FIIs are dropping. On the NSE Nifty, a 0.78% intra-day loss was recorded. The Nifty50 is trading at 9,514.90. Trading was halted on Indian equity markets within minutes of opening, after lower circuits were hit. The Sensex lost 3,000 points to trade at sub-30,000 levels while Nifty50 cracked a 10 percent loss to sub-9,000 levels. Dollar traded to 74.50 against the Indian Rupee.
Bears maul Sensex & Nifty50:
An investment harakiri of sorts panned up on Indian equity indices with benchmark Sensex and Nifty50 both tottering at unthinkable levels.
Within a few minutes of trading session, the thirty scrip Sensex barometer periliously read 3,090.62 points down or 9.43 percent down to 29,687.52. The mangled looks on the NSE Nifty were visible with a 966.10 points down or 10.07 percent to 8,624.05.
Trading was halted for 45 minutes, and soon resumed to recover losses.
Indian equities are likely to soak in from the negative cues observed across the world. The Dow Jones Industrial Average fell 2,352.60 points, or 9.99 per cent, to 21,200.62. The 30-stock index had its biggest one-day percentage drop since the 1987 Black Monday market crash, when it collapsed by more than 22 per cent.
The S&P 500 decreased 260.74 points, or 9.51 percent, to end at 2,480.64. The Nasdaq Composite Index shed 750.25 points, or 9.43 per cent, to 7,201.80. Overnight, the sell-off on Wall Street helped to wipe out most of Wall Street’s big gains since President Donald Trump took office.
The S&P 500 declined 7 per cent shortly after Thursday's opening bell, triggering a key circuit breaker that halted trading for 15 minutes. It was Wall Street's second 15-minute halt this week.
Sensing the bear zone, indices halted trading after DJIA and S&P500 slumped by over 7 percent. On resuming trade, the indices bled further.
The World Health Organization called the new coronavirus outbreak a pandemic, issuing a grim warning that the global spread and severity of the illness was due to "alarming levels of inaction". The slump continued in the global markets after a similar trend on Wednesday after the WHO declared coronavirus as a global pandemic.
European markets fell 12% in one of their worst days ever, even after the European Central Bank pledged to buy more bonds and offer more help for the economy.
US President Donald Trump has announced that travel from Europe will be suspended for 30 days as part of his government's response to the coronavirus outbreak. He added that his administration would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined.
However, the decision has not been sufficient to soothe global investor sentiments.
The markets have behaved in an eccentric manner in Asian markets. Losses in mainland China, where communities are recovering from the worst of the virus, were less severe, with the Shanghai Composite index down 3%. Most other regional markets had lost between 4% to 6% by midday Friday in Asia.
Wow. Just now on BSE! pic.twitter.com/1tQp2Fc7mX— R. Balakrishnan (@BalakrishnanR) March 13, 2020
To everyone who thinks that India can't reduce rates because oh the INR will fall. Currently India has very high rates, and the US has lowered them, and the INR is still falling. Let's not be silly, and cut rates already.— Deepak Shenoy (@deepakshenoy) March 13, 2020
Macquarie On SBI @TheOfficialSBI— Geetu Moza (@Geetu_Moza) March 13, 2020
Upgrade to OP after the recent sharp correction. No change to EPS/TP.
YES Bank acquisition risks adequately priced in; Subsidiaries are free.
Valuation at 0.7x FY22E consolidated P/BV is very cheap.
12-month price target: Rs 351 pic.twitter.com/UUvPquXjya
10 yr paper yield climbs to 6.34% after dropping below 5% briefly last week. Corporate bond yields rising. What's happening? Risk aversion? Heading towards total dislocation in market? How will govt borrowing programme start in April? @ananthng— Tamal Bandyopadhyay (@TamalBandyo) March 13, 2020
Remember @NYSE was closed for 4 days after World Trade Center attack in Manhattan on 11 Sept 2001, the single longest closure since 1933? It reopened on Sept 17 (holidays in between). The way things are panning out, #COVID19 may force market closure ...— Tamal Bandyopadhyay (@TamalBandyo) March 13, 2020
This really is the picture of the day— Nigel D'Souza (@Nigel__DSouza) March 13, 2020
When at lower circuit
*1 stock was advancing for more than 20 declining
*1 stock advances for 1 declining
Whatta a recovery
Advance decline ratio kiss before the weekend #nifty50 #StockMarket #CoronavirusPandemic pic.twitter.com/xj8fO0LR4h
India's 1st corona victim is from my hometown. She recovered fully in 5 days and told it was like normal flu. This could be the case for most Indians who are likely to be affected. No need for panic; World will be back to normal after a short break!— Porinju Veliyath (@porinju) March 13, 2020