Sensex falls over 500 points in choppy trade, Nifty sub 9,200; Bajaj Fin tanks7 min read . Updated: 24 Apr 2020, 03:35 PM IST
- Most Nifty sectoral indices slip. Nifty Bank declines over 3%
- BSE MidCap, BSE SmallCap end down 1.4-1.7%
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India equity market ended the week on a negative note amid volatile trade. Bank and financial services stocks were hit the most today, where non-banking financial companies (NBFCs) suffered massive sell-off due to tepid response from banks to Reserve Bank of India's (RBI) targeted long-term repo operations, or TLTRO 2.0, for liquidity infusion.
Sensex and Nifty had opened in the red but trimmed losses intraday. However, both indices failed to hold the recovery and slipped back to opening levels at the end of the session.
While Sensex fell 535.86 points, or 1.7%, to end at 31,327.22, Nifty 50 settled 159.50 points, or 1.7%, lower at 9,154.40.
Britannia was the best performer on Nifty 50, rising nearly 4%, followed by Reliance Industries, Cipla, Larsen & Toubro and Hero MotoCorp, while shares of Bajaj Finance, Bharti Infratel, Zee Entertainment, Bajaj Finserv and Hindalco led the losses.
The Nifty 50 index slipped below the 9,200 mark, largely dragged by bank and financial services stocks such as Bajaj Finance, Bajaj Finance, ICICI Bank, IndusInd Bank and HDFC Bank. The scrip was at 9,158.30 points, down 1.7%.
The Indian rupee ended lower by 38 paise at 76.45 against the US dollar amid sell-off in the domestic equity market. The currency had settled at 76.07 per dollar on Thursday.
The long-stop deadline for the merger of Vodafone Idea-led Indus Towers with Airtel's Bharti Infratel has been extended to 24 June from 24 April. Shares of Vodafone plunged 6.9% to ₹4.03 on the BSE, while that of Bharti Infratel lost 9.5% to ₹150.35.
Major Asian stocks failed to hold early gains and ended in the red. While Japan's Nikkei 225 fell 0.9%, Hang Seng index in Hong Kong dropped 0.6%. Shanghai Composite in China and Korea's Kospi settled over 1% lower today.
L&T Finance Holdings said it has completed the sale of its subsidiary, L&T Capital Markets, to IIFL Wealth Finance. The transaction has been valued at ₹230 crore. Shares of L&T Finance tumbled 5.2% to ₹58.75 on the BSE.
Over 320 companies, including JSW Steel, Tata Power, and Piramal Enterprises, have sought moratorium on loan payment from banks and investors in their market instruments. Most of the companies which have availed of the relief are those with AA rating and below, according to the list published by the rating agency Icra.
European stocks slid in early deals, with EU leaders divided over the size of a financial rescue package to stimulate the bloc's economy left battered by the coronavirus pandemic. Around an hour after opening, London was down 1.3%, Frankfurt dropped 1.6%, Paris retreated 1.5% and Milan lost 1.4%. (AFP)
In the aftermath of Franklin Templeton India winding down six debt schemes, the Association of Mutual Funds in India (AMFI) rushed to assure investors that their money in debt schemes is safe. The mutual fund shut down six yield-oriented managed credit funds owing to severe liquidity crunch and redemption pressure due to the coronavirus outbreak.
The state-owned lender has redeemed $350 million senior notes listed on the Singapore Exchange Securities Trading and issued under its $5 billion medium term note (MTN) programme for $350 million. Shares of the bank was down 0.9% to ₹21.20 on the BSE.
Shares of HDFC Asset Management Company tanked 6% and Nippon Life India Asset Management tumbled 12.7% on Friday on fears of increased redemption pressure after Franklin Templeton Mutual Fund announced the winding up of six of its debt schemes.
Crude oil prices continued to rise on the back of increasing US-Iran tensions and on hopes of improvement in demand from the world's largest importer China. The US West Texas Intermediate (WTI) crude rose 3.8% to $17.12 a barrel.
The plastics company said it has partially re-commenced operations at 15 of its 25 manufacturing plants across the country, on the lines of the government's plan to lift the nationwide lockdown in a phased manner. Shares lost 2.4% to ₹1,045.95 on the BSE.
Shares of non-banking finance companies (NBFCs) traded lower after the Reserve Bank of India's (RBI) targeted long-term repo, or TLTRO 2.0, operations to infuse liquidity into NBFCs and micro-finance institutions (MFIs) failed to get banks' interest.
Bajaj Finance fell 4%, HDFC 2%, Manappuram Finance 4%, LIC Housing Finance 5%, Repco Home Finance 4%, Can Fin Homes 4%, Shriram Transport Finance 6%, Cholamandalam Finance Holding 6%, Edelweiss Financial Service 6% and L&T Finance Holdings 5%.
The pharmaceutical company said the US Food and Drug Administration (USFDA) has approved abbreviated new drug application (ANDA) filed by Granules Pharmaceuticals Inc (GPI), a wholly owned foreign subsidiary of Granules India, for Trospium Chloride Extended-Release Capsules. Shares of the firm rose 4.4% to ₹167.50 on the BSE.
HCL Technologies, Cipla, Sun Pharmaceutical, Larsen & Toubro and Britannia gained the most among Nifty 50 stocks, while Zee Entertainment, Bajaj Finance, ICICI Bank, IndusInd Bank and Axis Bank led the losses.
Indian equity market fell in opening deals, tracking Asian peers. The sell-off was also triggered due to the Franklin Templeton Mutual Fund episode. The benchmark Sensex declined 563.85 points, or 1.8%, to 31,299.23, while the Nifty 50 index slipped 164.15 points, or 1.8%, to 9,149.75 in early trade.
Franklin Templeton Mutual Fund on Thursday said it will shut down six yield-oriented, managed credit funds in India, effective April 23, due to severe market dislocation and liquidity crunch caused by the coronavirus-led 40-day national lockdown.
"The decision has been taken in order to protect value for investors via a managed sale of the portfolio," the Fund said in a statement.
The decision was limited to funds which have "material direct exposure to the higher yielding, lower-rated credit securities in India that have been most impacted by the ongoing liquidity crisis in the market," the statement said.
Mahindra & Mahindra's board approved raising funds through the issuance of unsecured and redeemable non-convertible debentures (NCDs) worth ₹1,000 crore on a private placement basis. ITC, Vodafone Idea, Ashok Leyland and JSW Energy are some other stocks that may be in focus.
Most Asian stocks were in the red in early trade, with Japan's Nikkei 225 falling 0.8%, while Hong Kong Hang Seng index down 0.2%. Kospi index in Korea and China's Shanghai Composite tumbled 0.5% each. SGX Nifty indicates negative opening for Indian shares.
Oil prices continued their rally on Thursday on rising US-Iran tensions, lending support to equity markets. Iran's Revolutionary Guards warned the US of a "decisive response" after President Donald Trump said Wednesday he ordered the US Navy to destroy Iranian boats that harass American ships in the Gulf. The US West Texas Intermediate (WTI) rose 20% to $16.50 per barrel, while Brent crude gained 4.7% to $21.33 per barrel.
The Dow Jones Industrial Average rose 0.17% to end at 23,515.26 points, while the S&P 500 lost 0.05% to finish at 2,797.8. The tech-rich Nasdaq Composite slipped 0.01% to 8,494.75.
The S&P 500 ended marginally lower on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomised clinical trial, denting optimism that the pandemic's impact on the labor market was nearing an end.
All three main US stock indexes fell back from gains of over 1% after the Financial Times reported that a Chinese trial showed that Gilead Science's remdesivir did not improve patients' condition or reduce the pathogen's presence in the bloodstream.