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Last Updated : Mar 12, 2020 07:44 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a negative opening for the index in India, down 371 points.


Benchmark indices witnessed a volatile day of trade on March 11 but managed to end the day in the green with the Sensex ending 62.45 points higher at 35,697.40 while Nifty was up 6.90 points to end at 10,458.40.

"Support is needed from the global markets for further bounce but it seems difficult at present due to rise in coronavirus cases," said Ajit Mishra, VP - Research at Religare Broking who advised limiting leveraged positions and preferring hedged bets.

Close

According to the pivot charts, the key support level for Nifty is placed at 10,346.57, followed by 10,234.73. If the index moves up, key resistance levels to watch out for are 10,557.67 and 10,656.93.

The Bank Nifty gained 0.10 percent to close at 26,487.80. The important pivot level, which will act as crucial support for the index, is placed at 26,217.46, followed by 25,947.13. On the upside, key resistance levels are placed at 26,774.76 and 27,061.73.

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

Wall Street stocks plunged on Wednesday, with the Dow confirming a bear market for the first time since the financial crisis after the World Health Organization called the coronavirus outbreak a pandemic.

The Dow Jones Industrial Average fell 1,464.94 points, or 5.86%, to 23,553.22, the S&P 500 lost 140.85 points, or 4.89%, to 2,741.38 and the Nasdaq Composite dropped 392.20 points, or 4.7%, to 7,952.05.

Asian Markets

Asia stocks fell sharply in morning trade on Thursday after the Dow Jones Industrial Average plunged into bear market territory overnight as the World Health Organization (WHO) declared the coronavirus outbreak a global pandemic.

Nikkei 225 declined 4.32% in morning trade while the Topix index fell 3.94%. South Korea’s Kospi also plummeted 4.99%. Shares in Australia dropped, with the S&P/ASX 200 down 4.79%. Hong Kong’s Hang Seng index also fell 2.88%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the index in India, down 371 points. The Nifty futures were trading lower at 10,045 on the Singaporean Exchange around 07:20 hours IST.

Coronavirus crisis: WHO says COVID-19 is a pandemic

Stating that it is concerned about its spread and severity, the World Health Organisation on March 11 said coronavirus 'can be characterised as a pandemic'.

"WHO has been assessing this outbreak around the clock and we are deeply concerned both by the alarming levels of spread and the severity, and by the alarming levels of inaction," Tedros Adhanom Ghebreyesus, the Director-General of WHO said in a media briefing.

Equity investors should be first to take brunt in case of YES Bank: AMFI

Equity investors should be the first to take the brunt in case of YES Bank's restructuring, followed by preference shareholders, and the additional tier-I bondholders should be the last to be touched, mutual fund industry body AMFI said on March 11. The asset management companies have made representations to both SEBI and RBI regarding the same, lobby grouping AMFI's chief executive N S Venkatesh said.

In the restructuring package proposed last week, the RBI had suggested that over Rs 8,000 crore of investments by MFs and bank treasuries in the AT-1 bonds should be written-off completely, leading to the voices of concern being expressed by fund managers.

RBI buys $10.27 bn dollars in January

The Reserve Bank of India (RBI) continued to be a net purchaser of the US dollar after it bought $10.27 billion in January on a net basis from the spot market, recent RBI data showed. In the reporting month, the RBI had bought $11.49 billion of the US currency and sold $1.22 billion in the spot market.

In December, the RBI had bought a net of $4.36 billion of the greenback. It had bought $5.37 billion while sold $1.01 billion of dollars, the data showed.

Gems, jewellery exports drop 20% to Rs 20,763cr in February

India's gems and jewellery exports declined by 20.26 percent to Rs 20,763.28 crore in February, hit by the global outbreak of Covid-19, credit crunch and customs issues, according to industry body GJEPC. Gems and jewellery exports stood at Rs 26,039.32 crore in February 2019, the Gem and Jewellery Export Promotion Council (GJEPC) said.

"The fall in gems and jewellery exports has been happening over some time due to the global economic slowdown coupled with the industry struggling with credit crunch and customs issues. Now the global outbreak of Covid-19 has added to the existing issues," said GJEPC Vice Chairman Colin Shah.

UK pledges $39 billion to protect economy from coronavirus

Britain launched a 30 billion-pound ($39 billion) economic stimulus plan just hours after the Bank of England slashed interest rates, a double-barrelled package aimed at warding off the risk of a coronavirus recession.

Prime Minister Boris Johnson's new finance minister, Rishi Sunak, said the economy faced a "significant impact" from the spread of the virus, even if it was likely to be temporary. "Up to a fifth of the working age population could need to be off work at any one time. And business supply chains are being disrupted around the globe," Sunak said in an annual budget speech to parliament on Wednesday.

NBFCs' challenges could intensify following YES Bank restructuring: Fitch Ratings

India's non-bank financial institutions (NBFI) will likely face renewed pressure on funding and liquidity following the RBI's takeover of YES Bank this month, Fitch Ratings said on March 11. "The consequences will compound the credit squeeze across the country's financial system, adding to current economic uncertainty," it said.

Indian economy to benefit from slump in international oil prices

The Indian economy will likely see significant benefits in the form of lower current account deficit, reduced inflation and higher GDP following a slump in international crude oil prices, Kotak Institutional Equities Research said on March 11. The collapse in cooperation between Saudi Arabia and Russia has triggered a plunge in oil prices that shows no signs of abating. Saudi Arabia has been cooperating with Russia to limit supply to the oil market and prop up prices.

Rupee recovers 56 paise, settles at 73.61 against US dollar

The rupee recovered 56 paise to settle at 73.61 (provisional) against the US dollar on Wednesday amid positive domestic equities and weakening of the American dollar in the overseas market. The rupee on March 9 had plunged to a 17-month low of 74.17 against the US dollar amid mounting fears of a coronavirus-led economic slowdown.

At the interbank foreign exchange market, the rupee opened higher at 73.88 gained further ground to touch a high of 73.55 in day trade. The local unit finally settled at 73.61 (provisional) against the US dollar, registering a rise of 56 paise over its previous close.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 3,515.38 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 2,835.46 crore in the Indian equity market on March 11, provisional data available on the NSE showed.

With inputs from Reuters & other agencies

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First Published on Mar 12, 2020 07:27 am
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