Thank you, readers! Here are the main highlights from today’s trading session##Thank you, readers! Here are the main highlights from today’s trading session
- Sensex and Nifty Down For Third Day After A Volatile Session
- Indices Back At Over 2-week Lows After Recovering Almost All Losses Today
- Reliance Industries Falls For The Fouth Session, Contributes Most To Nifty’s Loss
- Only 9 Nifty Stocks End In The Green, Axis Bank Over 200-DMA
- ICICI Bank Ends At Lowest In A Month, Contributes 70 Percent To Nifty Bank’s Loss
- India Cements Extends Yesterday’s Rally, Ending At A Near 8-month High
- Fundraising Plans Fail To Keep Apollo Tyres In The Green; Stock Ends 5 Percent Off Highs
- Glenmark Ends Up 1.3 Percent After 0 Observations To Indore and Aurangabad Units
- Market Breadth In Favour Of Declines With Advance-Decline Ratio At 1:2
Closing Bell: Sensex, Nifty end lower for 4th session as coronavirus-led global selloff continues##Closing Bell: Sensex, Nifty end lower for 4th session as coronavirus-led global selloff continues
Indian shares extended losses for the fourth straight session on Wednesday as fears of a potential coronavirus pandemic rattled the markets. As the outbreak outside China escalated, global investors shunned riskier equities, with metal stocks tumbling the most. The BSE Sensex ended 392 points lower at 39,889, while the Nifty50 index settled 119 points lower at 11,678.
Asian shares also took a beating as the virus spread rapidly from its epicentre in China to other countries, leaving investors concerned about its impact to the economy. Back home, the broader markets were also in the red with the Nifty Midcap index and Nifty Smallcap index down 1 percent and 0.6 percent, respectively. Among stocks, Yes Bank, SBI, Bharti Infratel, HCL Tech, and HDFC Bank were the top gainers on the Nifty50 index, while GAIL, Tata Motors, Sun Pharma, Grasim, and Hindalco led the losses.
All sectoral indices were red for the day. Major selling was seen in Nifty Auto and Nifty Metal indices, down 2.1 percent and 1.7 percent, respectively. Nifty Realty, Nifty IT and Nifty Pharma also lost around 1.5 percent each, while, Nifty Bank shed 0.4 percent for the day.
Global recession likely if coronavirus becomes pandemic: Moody's Analytics##Global recession likely if coronavirus becomes pandemic: Moody's Analytics
A global recession is likely if coronavirus becomes a pandemic, and the odds of that are uncomfortably high and rising with infections surging in Italy and Korea, Moody's Analytics said on Wednesday. "The coronavirus has been a body blow to the Chinese economy, which now threatens to take out the entire global economy," Chief Economist at Moody's Analytics Mark Zandi said. The outbreak of the virus, officially called COVID-19, was first detected in Wuhan in China in December and has since affected thousands of people across the globe.
Coronavirus impact: Global markets may rebound going forward, says AMP Capital Investors##Coronavirus impact: Global markets may rebound going forward, says AMP Capital Investors
The big global story remains the coronavirus outbreak that is weighing-in on global equity markets. China has reported over 400 new cases, while cases outside of China are now increasing in countries like South Korea, Iran and European countries like Italy, Switzerland and Austria.
Shane Oliver of AMP Capital Investors said, “Initially the focus was on China and key to watch there was the number of new cases on a daily basis. But that has been falling steadily over the last month. In fact the total was around 2950 towards the beginning of the month and now it is 500. So, that is quite a big reduction in China.” “However, the problem is the spread of the virus elsewhere around the world and that is what is unnerving investors all around,” he said. READ MORE
LIC IPO may get delayed due to procedural glitches: Fitch##LIC IPO may get delayed due to procedural glitches: Fitch
The Indian government's proposed IPO of state-owned Life Insurance Corporation of India (LIC) will improve the accountability and transparency of the country's largest insurer but is unlikely to happen during the next fiscal, Fitch Ratings said on Wednesday.
"The procedural and legal bottlenecks in terms of amending certain sections of the LIC Act, conducting independent valuations as well as obtaining regulatory approvals may delay the execution beyond the government's target deadline of end-March 2021, " Fitch said. READ MORE
Tata Power hits 52-week low on Jefferies' downgrade##Tata Power hits 52-week low on Jefferies' downgrade
Tata Power share price touched a 52-week low of Rs 50.35, falling 2.6 percent in the early trade on February 26 after foreign research hosue downgraded the stock and cut the target price. Research house Jefferies downgraded the stock to hold from buy and also cut target price to Rs 55 from Rs 90 per share.
According to Jefferies, between a renewable energy acquisition & incremental capex, a material debt decline seems elusive, while lower coal prices led to a 15-20 percent decline in our FY20-21 EPS.
Fitch Revises Outlook on JSW Steel to Negative from Stable; Affirms at 'BB'##Fitch Revises Outlook on JSW Steel to Negative from Stable; Affirms at 'BB'
Fitch Ratings has revised the Outlook on JSW Steel Limited's (JSWS) Long-Term Issuer Default Rating (IDR) to Negative from Stable, and affirmed the IDR at 'BB'. The agency has also affirmed JSWS's senior unsecured rating at 'BB'.
The revision of the Outlook reflects the risks in JSWS's ability to deleverage and generate positive free cash flow (FCF) because of the various challenges in the Indian market. Apart from weak industry conditions, JSWS's deleveraging and improvement in its FCF profile can be delayed by an increase in its planned capex or inability to stabilise and improve performance at acquired assets. A deleveraging trajectory that is slower than our expectations and prolonged negative FCF will indicate a weaker financial profile and affect JSWS's ratings.
SBI Cards IPO: Expect credit card growth story to continue, says CEO Hardayal Prasad##SBI Cards IPO: Expect credit card growth story to continue, says CEO Hardayal Prasad
SBI Card IPO price band range has been fixed at Rs 750-755 per share. It opens for a subscription next week. CNBC-TV18 caught up with Hardayal Prasad, MD, and CEO of SBI Card to gauge the management's reading of the industry and his expectations from the well-anticipated IPO.
Speaking about the Merchant Discount Rates (MDR), Hardayal Prasad, MD, and CEO of SBI Card said, “On the MDR rates, the discussion has been going on since demonetisation. The first time if you recall, the government of India went ahead and started looking at the MDR and at that stage, the debit card and MDR on debit were taken into account and there were some changes that were made. Subsequently, if we go back in the finance bill, the finance minister announced that there is going to be a relook at the MDR and there may be zero MDR on a select debit card.” READ MORE
Bandhan Bank jumps 5% after RBI lifts regulatory restriction##Bandhan Bank jumps 5% after RBI lifts regulatory restriction
Bandhan Bank share price added 5 percent in the early trade on February 26 after the Reserve Bank of India (RBI) allowed the company to expand its branch network. Though the bank is still not in compliance with the licensing condition on dilution, considering the efforts made by the bank to comply with the said licensing condition, it has lifted the regulatory restriction on branch opening, as per press release.
However, it is subject to the condition that the bank ensures that at least 25 percent of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.