Selling pressure continued in the market amid consolidation on February 25 as investors assessed the economic impact of the deadly coronavirus that has so far claimed over 2,700 lives and infected over 80,000.
The BSE Sensex was down 82.03 points at 40,281.20, while the Nifty 50 fell 31.50 points to 11,797.90, forming a bearish candle on daily charts.
Market breadth was in favour of bears as about three shares declined for every two shares rising on the BSE.
According to the pivot charts, the key support level for Nifty is placed at 11,757.53, followed by 11,717.17. If the index continues moving up, key resistance levels to watch out for are 11,860.63 and 11,923.37.
Nifty Bank closed at 30,432.70, down 22.40 points. The important pivot level, which will act as crucial support for the index, is placed at 30,304.83, followed by 30,176.97. On the upside, key resistance levels are placed at 30,585.63 and 30,738.56.
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 Dow and the S&P 500 tumbled 3% on Tuesday in their fourth straight day of losses as the coronavirus spread further around the world and investors offloaded risky assets as they struggled to gauge the economic impact.
The Dow Jones Industrial Average ended down 879.44 points, or 3.15%, at 27,081.36 and the S&P 500 lost 97.68 points, or 3.03%, to finish at 3,128.21. The Nasdaq Composite dropped 255.67 points, or 2.77%, to 8,965.61.
Asian Markets
Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows.
That led MSCI's broadest index of Asia-Pacific shares outside Japan down 0.6%. Australian shares were down 1.77%, while Japan's Nikkei stock index slid 1.1%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 94 points loss or 0.8 percent. The Nifty futures were trading around 11,724-level on the Singaporean Exchange.
Oil falls for 3rd day as virus fears accelerate
Crude prices fell about 3% on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus grew after the US government warned Americans to prepare for the disease.
Brent crude fell $1.35, or 2.4%, to settle at $54.95 a barrel. US West Texas Intermediate crude dropped $1.53, or 3%, to settle at $49.90 a barrel.
Rupee settles 13 paise higher at 71.85 against USD
The rupee on Tuesday recovered 13 paise to close at 71.85 (provisional) against the US dollar amid easing crude oil prices and weakening of the American currency in the overseas market. Forex traders said while weak dollar and easing crude oil prices supported the rupee, losses in domestic stocks and foreign fund outflows weighed on the local unit restricting its upmove.
At the interbank foreign exchange market, the local currency opened on a positive note at 71.84. During the day, it saw a high of 71.78 and a low of 71.90.
Credit growth may improve to 8-9% in next fiscal: Crisil report
Increased demand for retail loans, strong growth in lending by private banks and pick-up in economic activity are likely to improve credit growth to 8-9 percent in the next financial year, says a report. So far this year, loan growth has slowed to around 7-7.5 percent.
"The prolonged slowdown in bank lending may be bottoming out this fiscal, with gross credit offtake set to rise 8-9 per cent on-year in FY21, a good 200-300 basis points (bps) over the likely growth of around 6 percent this fiscal," rating agency Crisil said in a report. During this fiscal, some growth momentum is expected in the fourth quarter, after subdued three quarters – due to traditional fiscal year ending growth.
RBI announces 2 long-term repo operations early next month
The Reserve Bank on Tuesday announced two long-term repo operations (LTROs) for three-year tenors worth Rs 25,000 crore each to be conducted on March 2 and March 9. The reversal date of LTRO on March 2, 2020 is March 1, 2023 while for LTRO to be conducted on March 9, 2020, it will be March 7, 2023, RBI said.
In the sixth bi-monthly policy, the RBI had announced term repurchase agreements (repos) of one-year and three-year tenors for a total amount of Rs 1 lakh crore at the policy repo rate, from the fortnight beginning on February 15. LTROs are aimed at helping banks to reduce their lending rates, thereby quickening the monetary policy transmission.
Microfinance sector grows at 26.5% in October-December quarter
The microfinance sector grew by 26.5 percent in the October-December quarter of 2019-20 with portfolio outstanding at Rs 2.12 lakh crore, says a report. The sector witnessed a growth of 8.5 percent on a sequential basis.
"Both rural and urban geographies witnessed steep growth as compared to the second quarter of FY20, with rural sector growing at a phenomenal 10 per cent as against 1.6 percent in the previous quarter and urban sector at 6.6 percent against 1 percent in the previous quarter," according to Crif Microlend, a quarterly report on the micro-lending industry in the country.
Sebi bans transfer of clients’ securities to broker accounts
Markets regulator Sebi on Tuesday banned transfer of clients' securities to demat accounts of trading and clearing members. Against the backdrop of Karvy Stock Broking Ltd (KSBL) incident, the watchdog has now put in place stringent norms to prevent misuse of clients' securities that are available with trading and clearing members, and depository participants.
The new framework has been devised after extensive consultations with stock exchanges, clearing corporations, depositories and industry representatives of trading and clearing members, and depository participants, according to a circular.
SBI Cards & Payment Services sets IPO price band at Rs 750-755
The second largest card issuer SBI Cards & Payment Services, which is hitting the primary market with a Rs 9,000-crore initial public offering, has set the price band for the share sale at Rs 750-755. The IPO, opening on March 2 and closing on 4, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares.
Promoters SBI and Carlyle Group will offload 3.73 crore shares and 9.32 shares respectively. SBI holds 74 percent in SBI Card and the rest by the Carlyle Group and they will pare their stakes by 4 percent and 10 percent respectively, SBI Managing Director Dinesh Khara told reporters kicking of the IPO roadshow.
Rossari Biotech receives SEBI nod for Rs 700cr IPO
Speciality chemical manufacturer Rossari Biotech has received approval from the capital market regulator SEBI for an initial public offering. Market sources said the issue size could be approximately Rs 700 crore. The IPO comprises a fresh issue of Rs 150 crore and an offer for sale of up to 1.05 crore equity shares, as per the DRHP filed with SEBI.
ADB lists Rs 850 cr masala bonds on India INX
Asian Development Bank (ADB) has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX. The proceeds would be used to support local currency lending and investment in India, the BSE-owned exchange said in a release on Tuesday. India INX is the country's first international exchange, located at International Financial Services Centre, GIFT City in Gujarat.
"This is the first time a foreign issuer and a supranational is doing a primary listing with India INX and we are excited to welcome ADB as a marquee issuer on our platform. This will help further in making GIFT IFSC a global hub for fund raising by Indian and Foreign issuers," India INX MD and CEO V Balasubramaniam said.
Economic contagion spreads beyond China to other Asian economies - Reuters Poll
The effects of the coronavirus outbreak are likely to reverberate beyond China as most major economies in the region are expected to either slow down significantly, halt or shrink outright in the current quarter, Reuters polls found.
Many Asian economies, which were just limping back to growth from the spillover effects of the 18-month long U.S.-China trade dispute, were again dealt a blow by the outbreak, which has shut down businesses and cities.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 2,315.07 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,565.28 crore in the Indian equity market on February 25, provisional data available on the NSE showed.
Stocks under F&O ban on NSE
Yes Bank is under the F&O ban for February 26. 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
