- Indices Fail To Hold Morning Recovery, Erase All Gains From Last 2 Sessions

Indian shares ended around 4.5 percent lower on Monday as the number of coronavirus infections in the country showed no signs of slowing in spite of a nationwide lockdown. The Sensex ended 1,375 points lower at 28,440, whereas the Nifty50 index lost 379 points to settle at 8,281. Positive coronavirus cases rose above 1,100 in India as of Sunday evening, government data showed, while the total number of deaths touched 27. Fresh cases were reported even as the country continued to be under a 21-day lockdown, which began on Tuesday last week.

Financials dragged the most during the day with Nifty Fin Services down over 7 percent and Nifty Bank declining 6 percent. Meanwhile, Nifty Auto also shed 5 percent, Nifty Metal fell nearly 3 percent, and Nifty IT lost 2 percent. However, Nifty Pharma and Nifty FMCG were in positive for the day, up 1.3 percent and 0.7 percent, respectively. On the Nifty50 index, Cipla, Tech Mahindra, Nestle India, Axis Bank, and Dr Reddy's were the top gainers while Bajaj Finance, HDFC, Kotak Bank, HDFC Bank, and Tata Steel led the losses.

In view of the lockdown, the rating agency has also revised the FY20 GDP forecast downward to 4.7 percent from the National Statistical Office’s advance estimate of 5.0 percent. It expects the GDP growth to come in at 3.6 percent in Q4FY20 and 2.3 percent in Q1FY21.

European Markets Update: Coronavirus pandemic remains focus, Stoxx 600 down 2%

The pan-European Stoxx 600 was down in early deals having initially opened in the black. Banking stocks tumbled 4.6 percent to lead losses as all sectors and major bourses slid into negative territory.

Global markets continue to take stock of the evolving coronavirus pandemic. Meanwhile in Europe, the number of deaths from coronavirus in Italy fell for the second consecutive day on Sunday. A national lockdown looks certain to continue beyond April 3.

U.S. President Donald Trump on Sunday extended the national social distancing guidelines to April 30, walking back his previous remarks that he wanted the country to reopen for business by Easter.

Indian arm of ABB Power Grid announces its listing on both BSE and NSE as ABB Power Products and Systems.

- Buy Hindustan Unilever with stop loss of Rs 2,050 and target of Rs 2,330

Maruti Suzuki's free services and warranty extended##Maruti Suzuki's free services and warranty extended

The share price of motorcycle and scooter manufacturing company Hero MotoCorp fell 5 percent after the company decided to halt operations till March 31, 2020, at all its manufacturing plants globally to maintain the health and well‐being of employees, due to escalating COVID‐19 situation.

Shares of SpiceJet hit its lower circuit of 5 percent at Rs 35.15 per share on BSE as domestic and international flights remain suspended amid COVID-19 outbreak.

As consumer goods companies grapple with supply chain challenges and shortage of labour at their manufacturing plants amid the ongoing coronavirus lockdown, there is yet another mounting concern. The short supply of packaging material could pose a big challenge for the FMCG companies. Although the government has allowed factories supplying essentials and packaging materials to be operational, some clarity is still needed on the units supplying raw material to these packaging facilities.

Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC is of the view that over the last couple of weeks, the market has corrected over 35 percent is providing an opportunity to buy good blue-chip and quality names at a reasonable valuation. According to him, this coronavirus outbreak is going to have a significant impact on the economy and there would be a significant slowdown in growth in the next few quarters, and a lot of the sectors will get impacted.

"It will have an impact across sectors whether it is consumption, whether it is the services sector, infrastructure and to that extent one would have to look at companies or sectors, which would get impacted temporarily and which would be able to bounce back once things normalize," he said, adding that there could be some medium-term impact in a few sectors because the recovery from the current slowdown would be slow and gradual.

Bank of Baroda reduces lending rates by 75 bps

India’s second largest public sector lender, has reduced its repo-linked-lending rate (BRLLR) by 75 basis points with effect from March 28, 2020. The lending rate linked to RBI's repo rate is revised downwards in line with the reduction on RBI's repo rate by 75 bps last week. Speaking on the reduction on BRLLR Vikramaditya Singh Khichi, Executive Director, said “We encourage customers to avail of the credit lines that have been opened and assure that the Bank is available at all times to meet all the credit requirements in the most convenient way.” The BRLLR for all new floating rate loans for all personal loans and retail loans of all asset classes and floating rate loans to Micro, Small and Medium Enterprises, shall be 7.25 percent w.e.f March 28, 2020.

The telecom companies have been asked to take necessary steps as they deem fit, including an extension of validity of period for prepaid users, as subscribers who wish to top up or extend the subscription to a prepaid tariff using offline channels may face issues.

Domestic pharma major Zydus Cadila, part of Cadila Healthcare group, on Monday said it has received tentative approval from the US health regulator for its generic version of Parkinson's disease treatment drug Carbidopa and Levodopa extended-release capsules. The group now has 282 approvals and has so far filed over 386 abbreviated new drug applications (ANDAs) since the commencement of the filing process in FY 2003-04.

Indian indices trimmed some opening losses but were still trading around 2 percent lower on Monday. The Sensex was down around 500 points down whereas the Nifty50 reclaimed 8,500 level. Axis Bank, Cipla, Tech Mahindra, GAIL, and Dr Reddy's were the top gainers on the Nifty50 index, while Bajaj Finance, Eicher Motors, M&M, Bajaj Finserv, and JSW Steel led the losses. Broader markets also recovered a bit and were now down around 1.5 percent each. Nifty FMCG, Nifty IT, and Nifty Pharma turned posiive while financial and auto indices continued declining.

The Reserve Bank of India on Saturday said it has approved the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Syndicate Bank into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India and Allahabad Bank into Indian Bank. The scheme will come into force with effect from April 1, 2020 and all the branches of Oriental Bank of Commerce and United Bank of India will function as branches of PNB branches; Syndicate Bank branches into Canara Bank branches; Andhra Bank and Corporation Bank branches into Union Bank of India branches and Allahabad Bank branches into Indian Bank branches. Following the consolidation, there will be seven large public sector banks and five smaller ones. There were as many as 27 PSBs in 2017.

Indian shares opened lower after 4 sessions of gains on Monday, following losses in Asian shares and as oil prices took another tumble. The sentiment was negative as fears mounted that the global shutdown for the coronavirus could last for months, doing untold harm to economies. At 9:18 am, the Sensex was trading 994 points lower at 28,821, while the Nifty was down 298 points at 8,361.

RBI, on Friday, announced a array of measures to help the economy as it deals with the economic impact of coronavirus. The Reserve Bank of India joined several other central banks across the world in slashing interest rates. It cut the repo rate by 75 basis points to 4.40 percent. It was the first time the MPC met outside its bi-monthly meeting calendar.

Broader markets also shed over 3 percent in early deals. All sectoral indices as well were in the red with financial sectors down the most. Nifty Bank and Nifty Fin Services lost 4 percent each, while Nifty Auto and Nifty Metal were down around 3.5 percent each. 

Ashwani Gujral - ashwanigujral.com

- Sell Bajaj Finance with a stop loss of Rs 2,600, target at Rs 2,450

- Sell Maruti Suzuki with a stop loss of Rs 4,700, target at Rs 4,550

- Buy Bharti Airtel with a stop loss of Rs 440, target at Rs 465

- Buy Cipla with a stop loss of Rs 400, target at Rs 415

Mitessh Thakkar - mitesshthakkar.com

- Sell GAIL with a stop loss of Rs 71, target at Rs 65

- Buy Cipla with a stop loss of Rs 400, target at Rs 422

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