Market benchmarks fell for the fifth consecutive session on February 27 as investors continued selling riskier equities as concerns over coronavirus outbreak impacting global economic growth refused to fade away. Sensex shut shop at 39,745.66, down 143 points or 0.36 percent, while Nifty ended at 11,633.30 with a loss of 45 points or 0.39 percent.
The market will continue to react to news around coronavirus in the near-term while Q3 GDP numbers will also be on investors' radar, said experts.
According to the pivot charts, the key support level is placed at 11,558.73, followed by 11,484.17. If the index starts moving upward, key resistance levels to watch out for are 11,685.83 and 11,738.37.
The Nifty Bank index closed at 30,187, down 0.40 percent. The important pivot level, which will act as crucial support for the index, is placed at 29,976.83, followed by 29,766.67. On the upside, key resistance levels are placed at 30,334.54 and 30,482.07.
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’s main indexes plunged on Thursday for the sixth straight session, with the S&P 500 confirming its fastest correction in history as the rapid global spread of coronavirus intensified worries about economic growth.
The Dow Jones Industrial Average fell 1,190.95 points, or 4.42%, to 25,766.64, the S&P 500 lost 137.63 points, or 4.42%, to 2,978.76 and the Nasdaq Composite dropped 414.30 points, or 4.61%, to 8,566.48.
Asian Markets
Stocks in Asia declined in Friday morning trade as fears over the spread of the coronavirus globally drove investors to safety. Japanese stocks led losses among major markets regionally as the Nikkei 225 dropped 3.28% while the Topix index fell 3.03%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 176 points loss or 1.52 percent. The Nifty futures were trading around 11,432-level on the Singaporean Exchange.
Oil prices dive to lowest in over a year on coronavirus fears
Oil prices tumbled for a fifth day on Thursday to their lowest level in more than a year, as new reports of novel coronavirus cases outside China spurred investor fears that the rapidly spreading outbreak could slow the global economy.
Brent crude dropped $1.25, or 2.3%, to settle at $52.18 a barrel, off the session low of $50.97 a barrel, which was the lowest since December 2018. West Texas Intermediate (WTI) futures sank $1.64, or 3.4%, to $47.09, after hitting their lowest level since January 2019.
Fed seen cutting rates amid virus threat, low inflation
The Federal Reserve may need to move aggressively to cut borrowing costs to cushion the economy from the effects of the rapid spread of the new coronavirus, which sent global stocks tumbling this week.
Traders of futures contracts tied to the U.S. central bank’s policy rate are already betting on it. On Thursday they were pricing in about a 76% chance of the Fed starting to cut rates as soon as next month and trimming an extraordinary three-fourths of a percentage point by September, according to CME Group’s FedWatch.
Japan January factory output rises 0.8% month on month
Japan’s factory output rose 0.8% in January, government data showed on Friday, compared with the median market forecast for a 0.2% gain. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to grow 5.3% in February and drop 6.9% in March, the data showed.
Rupee settles 6 paise higher at 71.59 against US dollar
The Indian rupee finished 6 paise higher at 71.59 (provisional) against the US dollar on Thursday amid easing crude oil prices and weakening of the greenback overseas. Forex traders said the rupee consolidated in a narrow range as gains were restricted by sustained foreign fund outflows and robust selling in domestic equities.
At the interbank foreign exchange market, the local currency opened at 71.65 to the US dollar. During the day, it swung between a high of 71.55 and a low of 71.69. The domestic unit finally finished at 71.59, up 6 paise from its previous close.
MF houses should not mis-sell credit funds to investors: Sebi official
In the wake of mutual funds' ill-fated investments in companies like DHFL, capital markets regulator Sebi's whole-time member G Mahalingam on Thursday asked the industry not to mis-sell credit funds to investors by assuring higher returns and disclose the "hidden risks". He also exhorted the industry to manage liquidity such as to take care of any stressful times, calling out the watchdog's attempts to mandate overnight funds to hold liquidity buffers as an effort towards the same.
Mahalingam, a career central banker who joined Sebi, also went public with his disappointment at lack of interest among the mutual funds when it comes to voting on resolutions put forth by listed companies and specifically mentioned scams like Crompton Greaves, Fortis and Religare in the same context.
In the comments that come in the light of drastic erosion in value of investments on bets on DHFL following the IL&FS crisis, Mahalingam acknowledged that we have gone through "stressful times" and urged caution while selling products so that the retail investors' faith isn't dented.
Nearly a third of firms in China suffer shrinking revenues as coronavirus bites: survey
Nearly a third of companies operating in China have seen their revenues slashed as the coronavirus outbreak disrupts activity, a survey by the American Chamber of Commerce (AmCham) in China showed on Thursday.
The survey adds to evidence of economic strains that may mean more government measures are needed to relieve corporate financing difficulties and offset losses to prevent large scale relocation of supply and industrial chains.
“Nearly half of respondents hope the Chinese government will provide tax alleviation to help foreign business; additionally, over one-third are seeking clear, consistent policies, while 35%ask that transparency be prioritized,” the report said.
Morgan Stanley France SAS sells Titan Company shares worth over Rs 125 cr
Morgan Stanley France SAS on Thursday offloaded Titan Company's shares worth over Rs 125 crore through an open market transaction. According to block deal data on the NSE, Morgan Stanley France sold 10 lakh shares at an average price of Rs 1,255.1. This took the total deal value to more than Rs 125.5 crore.
Through separate transactions, Valiant Mauritius Partners Offshore Ltd and Valiant Mauritius Partners Ltd bought the shares at the same price, the block deal data showed.
Suryoday Small Finance Bank finalises merchant bankers, targets Diwali D-Street debut
Mumbai-headquartered Suryoday Small Finance Bank backed by the likes of International Finance Corporation (IFC) and HDFC has kicked off the process to raise around Rs 1,000 crore through an initial public offer (IPO) and has shortlisted four merchant bankers, sources with knowledge of the matter told Moneycontrol.
"Axis Capital, ICICI Securities, SBI Capital and IIFL (India Infoline) have been shortlisted for the IPO, which is primarily aimed at meeting RBI's regulatory norms for the niche segment," the source said. "The listing will be a mixture of primary and secondary issue of shares and the plan is to file the DRHP (draft red herring prospectus) before June-end 2020 and launch the IPO in October during the Diwali period."
FII & DII data
Foreign Institutional Investors (FIIs) sold shares worth net Rs 3,127.36 crore, while Domestic Institutional Investors (DIIs) bought net Rs 3,497.5 crore worth of shares in the Indian equity market on February 27, as per provisional data available on the NSE.
With inputs from Reuters & other agencies
