Indian Indices Extend Fall; Axis Bank & IndusInd Bank Crash 20%

Mon, 23 Mar 12:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   10:30 am   

   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!

---

Share markets in India are presently trading deep in the red. Trading in stock markets resumed after a 45-minute halt following a 10% plunge each in BSE Sensex and NSE Nifty.

This was the second trading halt within a period of seven trading sessions, as global markets continued to suffer the worst selloff since the 2008-09 global financial crisis.

The BSE Sensex is trading down by 3,503 points (down 11.7%), while the NSE Nifty is trading down by 1,008 points (down 11.6%).

The BSE Mid Cap index and the BSE Small Cap index are trading down by 10.9% and 10.4%, respectively.

All sectoral indices are trading on a negative note with stocks in the banking sector, finance sector and automobile sector witnessing most of the selling pressure.

Shares of Axis Bank and IndusInd Bank tumbled 21%, while ICICI Bank share price plunged 15%.

The rupee is trading at Rs 75.88 against the US$.

The domestic currency hit fresh all-time low of 76.15 against the US$ as forex market continued to grapple with economic uncertainties due to the coronavirus pandemic.

The domestic unit plunged nearly 84 paise to 76.15 in the early trade today against the previous close of 75.19 against the greenback.

Sustained selling by foreign institutional investors (FIIs) further weighed market sentiment.

Speaking of FIIs, how has the FII trend been so far this year? What has changed in recent weeks and months? And what's behind the heavy movement of foreign funds in India?

In the article titled How Coronavirus Hit FII Flows - 6 Points, we dive deeper to answer these questions.

In news from the pharma sector, shares of IPCA Labs surged 18% to hit a new high of Rs 1,616 in early trade today after the US health regulator partially lifted an import alert on the company's two plants to ensure the supply of chloroquine tablets.

The above medicine is considered one of the possible treatments for Covid-19, by the US Centre for Disease Control (CDC).

The regulator has also allowed import of hydroxychloroquine sulphate tablets produced at the formulations manufacturing units at Indore special economic zone and Pithampur in Madhya Pradesh, and Silvassa.

Further, the USFDA has also informed that their exception will be re-considered if the shortage implications change.

IPCA Labs share price is presently trading up by 1%.

Moving on to news from mutual funds space, the mutual fund industry has sought certain exemptions from the markets regulator pertaining to compliance requirements for order executions following government's work-from-home directive, meeting sectoral exposure norms in debt schemes amid liquidity crunch, and consider increasing borrowing limits as redemptions could spike amid coronavirus scare.

In a letter by the Association of Mutual Funds in India (Amfi), the industry body informed the regulator that in the current situation, it may not be possible for MFs to conduct dealing operations from MFs' premises and so dealers have to operate from alternate site, or their residence.

Further, MFs want the regulator to have a lenient view if any participant is unable to comply with new regulatory norms within stipulated timelines amid the limitations and challenges posed by the coronavirus scare.

The industry body has highlighted the liquidity crunch in debt markets following the coronavirus outbreak, which would make it difficult for MFs to meet sectoral limits in debt schemes and exit from unlisted debt securities.

Last year in October, the regulator had capped the sectoral limit on exposure in debt schemes to 20% from 25%.

The additional sectoral exposure limit for housing finance companies (HFCs) was capped at 10% from 15%. Overall exposure limit was kept at 20% for HFCs. This norm was to come into force from April 1, 2020.

MFs have asked to give the industry time till June 30, 2020, to re-balance to the revised sectoral limits, and said that any breaches by any participant will be passive in nature.

Speaking of mutual funds, Tanushree Banerjee wrote to you about an irreversible megatrend in the mutual funds space. It is the growth in the assets under management (AUM) of the Indian mutual fund industry.

This is evident in the chart below...

New High for Mutual Fund AUM

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

• After a few hiccups in the first half of this fiscal, strong inflows into mutual funds have taken the industry's AUM to a new high.
  
  Can we call it a saturation point?
  
  Far from it!
  
  The total AUM of India's mutual fund industry is just about 13% of India's GDP.
  
  This megatrend of financialisation of savings has a long runway ahead of it.

This is one of the megatrends that will help what Tanushree calls the Rebirth of India.

She has identified the 7 best stocks that will profit from the Rebirth of India. You can read about these top 7 stocks here.

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