Sensex Ends 674 Points Lower; Banking and Finance Stocks Witness Selling

Fri, 3 Apr Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   12:30 pm   

Indian share markets witnessed selling pressure throughout the day and ended lower. Investors were worried about the economic impact and uncertainty over the coronavirus pandemic.

Benchmark indices extended losses, as coronavirus cases continued to rise despite a complete lockdown. India is consecutively reporting biggest single-day jumps in new COVID-19 cases since Monday.

Sectoral indices ended on a mixed note, with stocks in the finance sector and banking sector, leading the losses, while healthcare stocks witnessed buying interest.

At the closing bell, the BSE Sensex stood lower by 674 points (down 2.4%) and the NSE Nifty closed down by 170 points (down 2.1%).s

The BSE Mid Cap index and the BSE Small Cap index ended the day down by 1.2% and 1%, respectively.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 0.4% and the Shanghai Composite stood lower by 0.6%.

Speaking of Indian share markets, in the article titled How Corona Crash Hit Indian Financial Markets in March 2020 - 6 Charts, we dive deeper and look at how Indian financial markets performed in March 2020.

Also, speaking of the current stock market scenario, stock markets around the world witnessed one of the most painful correction phases in the month of March 2020.

Indian stock markets too mirrored the trend. In the month of March 2020, the Sensex fell as much as 23%.

At times like these, while we must do everything we can to guard against the coronavirus, we must not ignore our money.

Our special report, How to Trade the Coronavirus Crash, will help you get a grip on the current market situation...and figure out ways to profit from it.

This is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. Claim your FREE copy here...

And rest assured, Equitymaster is with you all the way on this journey. To that end, we have decided to offer you two of our premium learning courses free!

From the comfort of your home, you can learn the basics of fundamental investing with Equitymaster Secrets and the ins and outs of making money using derivatives with Derivantage. Get started right away.

Moving on, the rupee is trading at 76.12 against the US$.

Gold Prices are currently trading up by 2.1% at Rs 44,249.

In domestic markets, gold prices rose sharply today tracking global rates. Further, a weaker rupee helped lift prices.

Speaking of gold, you will be surprised to know that the safe haven has outperformed equities over a 15-year period.

Have a look at the chart below:

An equal amount of Rs 100 invested in both gold and Sensex in 2004 would have generated higher returns in gold by a wide margin.

Your total investment in gold and Sensex would be valued at Rs 687 and Rs 410, respectively.

So, investors in gold are happier than investors in Sensex or equities at this moment.

In news from the automobile sector, shares of automobile companies witnessed selling pressure today on the back of disappointing March sales numbers, largely due to the nationwide lockdown to prevent the spread of coronavirus.

Reportedly, India's automobile sales are down by an average 64% as all manufacturing plants have been shut since the lockdown announced on March 24.

Shares of TVS Motors and Ashok Leyland slipped over 7% to hit new 52-week lows, while Hero MotoCorp, Tata Motors and Bharat Forge declined in the range of 5-6%.

Earlier this week, Maruti Suzuki said it had sold 83,792 in March, down 47% from a year earlier. However, the company said the number was not comparable with 2019 due to the suspension of operations from March 22.

Tata Motors' passenger vehicle sales for March fell 68%, while sales of commercial vehicles, including trucks and buses, slumped 87%.

The company said in the future, it would report sales numbers once a quarter instead of monthly to avoid needless short-term volatility and help investors focus on the long-term drivers of the business.

Mahindra & Mahindra (M&M) reported 88% year-on-year fall in its passenger vehicle (PV) sales for March. The company's passenger vehicle sales stood at 3,384 units in March.

The company also posted a 90% decline in its commercial vehicle sales, which stood at 2,325 units in March as against 24,423 units during the year-ago period.

Meanwhile, Bajaj Auto today reported a 38% decline in total sales to 2,42,57 units in March as against 3,93,351 in the same month last year.

Total domestic sales fell 55% to 1,16,541 units last month as compared to 2,59,185 units in March 2019.

The company, in a statement, said that its total two-wheeler sales were down 35% at 2,10,976 units as compared to 3,23,538 units in the year-ago month.

The auto sector has been experiencing a slump for several months with nearly all manufacturers reporting falling sales due to subdued consumer sentiment amid an economic slowdown.

We will keep you updated on the latest developments from this space. Stay tuned.

Moving on to news from the finance sector, data released by PRIME Database showed that financial year 2019-2020 saw a 62% jump in equity fundraising, with Rs 203.5 billion of funds raised by initial public offerings (IPOs) and Rs 512.2 billion of funds raised by already listed companies through the qualified institutional placement (QIP) route.

Overall, equity fundraising via various routes stood at Rs 916.7 billion in FY20, compared to Rs 564.9 billion in the previous financial year.

IPOs during FY20 saw strong appetite by institutional investors as well as retail investors.

QIP activity was up nearly fivefold, largely driven by issuances by Axis Bank and Bajaj Finance.

Funds mopped up through rights issues surged to Rs 560 billion.

Fundraising through public issuances of bonds saw 59% decline in FY20. As many as 35 issues raised Rs 149.9 billion, compared to 20 issues raising Rs 367.9 billion last year.

IPO activity this year is expected to see a sharp slowdown amid the coronavirus outbreak.

As many as 26 companies with approval from the markets regulator are looking to raise nearly Rs 260.6 billion from IPOs, while another six companies yet to receive nod have IPO fundraising plans of Rs 75 billion.

Stay tuned for more updates from this space.

And 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