Benchmark indices on February 24 posted massive losses amid rising concerns over the deadly impact of the coronavirus outbreak.
Sensex plunged 806.89 points or 1.96 percent, the biggest single day fall since February 1 this year to 40,363.23, while Nifty fell 251.50 points or 2.08 percent to 11,829.40.
The broader markets also fell in line with frontliners as the Nifty Midcap and Smallcap indices were down nearly 2 percent each.
All sectoral indices ended in the red with Nifty Metals (down 5.5 percent) and Auto (down 3.5 percent) falling the most, while the rest of indices declined 1-3 percent.
According to the pivot charts, the key support level for Nifty is placed at 11,757.7, followed by 11,686. If the index continues moving up, key resistance levels to watch out for are 11,956.8 and 12,084.2.
Nifty Bank closed at 30,455.10, down 1.58 percent. The important pivot level, which will act as crucial support for the index, is placed at 30,354.66, followed by 30,254.23. On the upside, key resistance levels are placed at 30,628.86 and 30,802.63.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
The S&P 500 and the Dow Jones Industrial Average on Monday suffered their biggest one-day percentage losses in two years after a surge in coronavirus cases outside China fanned worries about the global economic impact of a potential pandemic.
The Dow Jones Industrial Average fell 1,031.61 points, or 3.56%, to 27,960.8, the S&P 500 lost 111.86 points, or 3.35%, to 3,225.89 and the Nasdaq Composite dropped 355.31 points, or 3.71%, to 9,221.28.
Asian Markets
Asian shares extended losses on Tuesday amid fears the coronavirus was rapidly mutating into a pandemic that could cripple global supply chains and wreak far greater economic damage than first thought.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped another 0.2%, having already fallen 2.5% on Monday. Australia lost 1.8%, but South Korea's market was trying to stabilise.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 73 points gain or 0.62 percent. The Nifty futures were trading around 11,894-level on the Singaporean Exchange.
Rupee slides 34 paise to over 3-month low of 71.98 against US dollar
The rupee on Monday fell by 34 paise to close at more than three-month low of 71.98 (provisional) against the US dollar, tracking heavy selling in domestic equities and strengthening of the American currency in the overseas market. Forex traders said investor sentiment remained fragile amid concerns over the impact of coronavirus outbreak on global economy.
At the interbank foreign exchange market, the local currency opened on a negative note at 71.94. During the day, the domestic currency touched a high of 71.76 and a low of 72.01 and finally settled 34 paise lower at 71.98 against the US currency. This is the lowest closing level since November 13 when the rupee had settled at 72.09.
Markets bet Fed is pushed to cut rates in coronavirus response
Financial markets on Monday ratcheted up bets the US Federal Reserve will be pressed to cut interest rates to cushion a feared hit to economic growth from the spread of the coronavirus.
U.S. interest rates futures surged to their highest levels since last fall as evidence the virus was spreading further outside its original epicenter of China spurred a global sell-off in stocks and panicked buying of government bonds.
The federal funds futures contract tied to the Fed’s July policy meeting FFN0 reflected a greater than 85% probability the central bank’s benchmark overnight lending rate would be at least a quarter percentage point lower after that meeting’s conclusion, according to the CME FedWatch tool. A month ago that was seen as a roughly 50-50 prospect.
NITI Aayog official says $5 trillion economy target too idealistic
The government's target of achieving a $5 trillion economy by 2024-25 sounds "too idealistic", a Niti Aayog committee official said on Monday. The target has been so set to raise the bar of India's economic performance, she said.
"For now, the ambitious $5 trillion economy target is a statement of intent, which sounds too idealistic," said Bindu Dalmia, chairperson of the National Committee on Financial Inclusion and Literacy at Niti Aayog. Dalmia said to get to a $5 trillion or $10 trillion economy by 2030 from the current levels of $2.9 trillion, India needs to grow at 11.5 percent annually in nominal terms, or 7.5 per cent in real terms over the next 10 years.
Oil slides 4% on demand concerns as coronavirus spreads
Oil prices slumped by 4% on Monday as the rapid spread of the coronavirus in countries outside China added to investor concerns over the impact on demand for crude. Global equities also extended losses as worries about the impact of the virus grew, with the number of cases jumping in Iran, Italy and South Korea.
Brent crude was down $2.42, or 4.1%, at $56.08 barrel by 1316 GMT. U.S. crude futures fell by $2.11, or 4%, to $51.27.
SEBI reviews margin framework for cash, derivatives segments
Markets regulator Sebi on Monday reviewed the margin framework for cash and derivatives segments, in order to bring more efficiency in the risk management system. The move has been taken to keep pace with the changing market dynamics and to bring more efficiency in the risk management framework.
The framework, which has been prepared in consultation with the capital markets regulator's Risk Management Review Committee, will come into effect from May 1 this year, the Securities and Exchange Board of India (Sebi) said in a circular.
Gold surges to 7-year peak as pandemic fears spark safe-haven rush
Gold soared as much as 2.8% on Monday to its highest level in seven years, as investors worried about global economic growth in the face of sharply rising coronavirus cases outside China.
Spot gold was up 1.9% at $1,674.40 per ounce by 12:26 p.m. EST (1726 GMT). The session high, $1,688.66, was its highest since January 2013. US gold futures jumped 1.7% to $1,676.80 an ounce.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,160.9 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 516.21 crore in the Indian equity market on February 24 , provisional data available on the NSE showed.
Stock under F&O ban on NSE
Yes Bank is under the F&O ban for February 25. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies
