Mayhem on Dalal Street, RBI's Press Conference, SBI Cards IPO Debut, and Top Cues in Focus Today

Tue, 17 Mar Pre-Open

   Previous Close   

   09:30 am   

   10:30 am   

   12:30 pm   

   Closing   

Editor's note: Dear reader, we are now on Telegram! Get our latest views on stock markets and more, instantly. Join our Telegram channel here!

---

The mayhem continued on Dalal Street yesterday as well as India share markets traded deep in the red with Sensex and Nifty witnessing sharp fall.

Losses were see tracking a sell-off in global markets as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors.

At the closing bell yesterday, the BSE Sensex stood lower by 2,713 points (down 7.9%) and the NSE Nifty stood down by 756 points (down 7.6%).

The BSE Mid Cap index ended the day down 5.9%, while the BSE Small Cap index stood down by 5.7%.

All sectoral indices ended deep in the red with stocks in the metal sector, banking sector and realty sector witnessing maximum selling pressure.

Our Views on the Ongoing Stock Market Crash

Speaking of the gloomy economy, coronavirus fears, falling markets and crude oil prices, Ajit Dayal has written an insightful piece, sharing his views in the latest edition of The Honest Truth.

Here's a snippet of what he wrote:

• Is the meltdown over?
  
  While the unravelling of the debt excess in the US and the developed world may have some more to play out, the question on an investor's mind in India is: Is the mayhem over and what should I do next?
  
  On the face of it, there is some interesting Upside Potential, or potential profit, if you were to buy the specific stocks now and assume, they get back to their past peak levels over, say, the next 2 to 3 years.
  
  With the help of either some jaadu mantar or some good policy.
  
  But there are some "bets" I would be very cautious about: Yes Bank, Reliance and the INR, for instance.

You can read his entire article here: The Market Gets a Viral Attack.

Our bluechip stock analyst at Equitymaster, Tanushree Banerjee, believes that the ongoing market crash could, in fact, be an inflection point for what she calls the irreversible Rebirth of India megatrends.

Here's what she has to say more on this...

• Companies across the globe, will seek to diversify geographic risks after this crisis.
  
  India could see a big spurt in new factory capacities and fresh fund inflows. This trend, can widen the moats of the strongest bluechips.
  
  I believe, it can also help multiply their profits 4 to 8 times over the next decade.
  
  The time is ripe for StockSelect subscribers to begin buying some of the safest bluechips, right now.
  
  There is safety in valuations as the market offers them at deeper and deeper bargains.

Tanushree is recommending her subscribers, to buy stocks selectively, a few at a time, by taking partial exposures to begin with. She has already recommended 4 safe bluechips in the past month and there are several more in her watchlist. You can access them here: Here's How You Could Tread the Coronavirus Crisis Safely (requires subscription)

And if you are not a StockSelect subscriber, here's where you sign up.

In the video below, Tanushree has also explained how buying the above stocks at bargain prices is a once in a decade opportunity.

Our smallcap analyst at Equitymaster, Richa Agarwal, believes this is a time to not panic and remain invested in the good quality smallcap stocks, irrespective of the volatility.

She believes the best approach is to consider investing in stocks that are fundamentally strong and promise steady income along with strong upside in the long term.

Richa's latest webinar - Smallcap Rebound Opportunity in the Times of Coronavirus shares a list of open positions where the rebound potential is strong... And until the rebound, one can enjoy regular income from the dividend stocks with yields up to 9%.

Key Highlights from RBI's Press Conference

Amid wild speculation that the Reserve Bank of India (RBI) may follow its global peers and announce an emergency rate cut, the banking regulator had called a press conference yesterday.

Here are some of the key highlights from the same:

RBI Governor Shaktikanta Das said the interest rate decision will be taken in the monetary policy committee (MPC) meeting and he's not ruling out any possibility on an interest rate cut.

He said that the committee is estimating impact of COVID-19 and will give its growth estimates in MPC. As per him, India is relatively insulated from global value chain, but there will be some impact.

As regards to the economic activity amid the coronavirus outbreak, Das said that already sectors like tourism, hospitality, airlines and others are being affected due to the outbreak of coronavirus. There is considerable uncertainty about duration of pandemic and the RBI has been taking some calibrated measures to ensure financial markets and institutions remain sound and resilient.

It was stated that the RBI has several instruments at its command and stands ready to take all necessary measures to mitigate impact of COVID-19 on Indian economy.

It also proposed some steps based on the current evaluation such as to propose to conduct another 6 months US dollar/ Rupee sell-buy swap on March 23.

The RBI will also conduct long term repo operations (LTRO) in multiple tranches up to a total amount of Rs 1 lakh crores at the policy rate. This will be followed by a review of performance of LTRO. (The LTRO is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral)

Addressing the next steps for Yes Bank, Das said the moratorium on Yes Bank will be lifted on March 18 at 6 pm and new board will assume position on March 26 and administrator will vacate office. He assured depositors their money is completely safe and there is no need for worry saying that in the history of Indian banking, depositors of SCBs have never lost money. It was announced that depositors can withdraw their money after 6pm on March 18.

Das announced that if it is required, RBI will support Yes Bank with respect to liquidity.

He also added that interactions with the banks investing in Yes Bank gives the RBI committee confidence that the revival plan will work out.

SBI Cards IPO Makes a Tepid Debut. What's Next?

In news from the IPO space, SBI Cards and Payment Services share price made a tepid debut on bourses yesterday.

The stock of the company got listed at Rs 658, a discount 12.85% over its issue price of Rs 755.

This was the first listing in the current calendar year.

The credit card issuer had fixed final IPO price at Rs 755 per share, the higher end of price band (of Rs 750-755) and the employees received shares at a discount of Rs 75 per share to the final price.

The public issue was subscribed 26.5 times during March 2-4 but was less looked after than market expectations due to weak market conditions after wide-spreading novel coronavirus.

If you recall, the market correction had started a week prior to the opening of the SBI Cards IPO. Just the week before the IPO opened for subscription, the Sensex had tanked 7% in unison with the global stock market sell-off.

But investors were still optimistic about the IPO. The grey market premiums were in the range of Rs 250-300 per share. Investors were expecting listing-day gains of about 25-30% or more.

But as the market crash got deeper, the market sentiments have completely changed.

If you received allotment in the IPO, you're most likely evaluating if you should bite the bullet and exit the stock on the listing day itself, or hold it for the long run.

In yesterday's edition of The 5 Minute WrapUp, Ankit Shah has offered some insights on what should one do with the IPO if you have received the allotment. You can read his entire article here: Did the SBI Cards IPO Test Positive for Coronavirus?

Yes Bank Saga Continues

In news from the banking sector, Yes Bank share price will be in focus today as the crisis hit bank on Saturday reported a record loss of Rs 185.6 billion for Q3 FY20 due to a sharp jump in bad loans and higher provisioning. Also, as per the final reconstruction scheme for Yes Bank, 75% of the shareholding of the shareholders holding 100 or more shares will be locked-in for three years.

To know more, you can read Yes Bank's Q3FY20 result analysis on our website.

Apart from the above, the Index Maintenance Sub-Committee (IMSC) has decided to accelerate the removal of Yes Bank from Nifty50, Nifty Bank and all Nifty equity indices with effect from March 19.

While Yes Bank will be excluded from the Nifty50 index, Shree Cement will be included on March 19 and the replacement will also be applicable to the Nifty50 Equal Weight index.

Meanwhile, Bandhan Bank will replace Yes Bank in the Nifty Bank index and Nifty Private Bank index.

Yes Bank will also be removed from the Nifty 500 index and Sterling and Wilson Solar will be included in that index.

Adani Transmission will replace the private lender in the Nifty 100 index.

In one of the articles, we have written about the entire timeline of how YES Bank went from a stock market darling to a pariah. Read the article here: How the YES Bank Collapse Unfolded - 10 Points.

Speaking of the banking sector, the low access to credit for micro small and medium enterprises (MSMEs) tells us there is a huge opportunity for lenders.

This is evident from the chart below:

India's Huge Lending Opportunity

Of the 60 million MSMEs in India, only 11% had access to credit from organised lenders. Most of them are self-financed or get credit from unorganised sources.

Here's what Tanushree Banerjee wrote about this in one of the editions of The 5 Minute WrapUp...

• Self-financing limits the growth of these MSMEs. On the other hand, high interest rates from unorganised sources makes it difficult for them to earn profits.
  
  The Modi government is looking at various ways to correct this problem. Mudra loans, online loans facilities are being made available to MSMEs.
  
  Slowly but surely, lenders are sensing the huge opportunity that lies ahead for this sector.
  
  Banks and other financial firms with prudent lending practices and strong distribution networks will benefit from this megatrend.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers