Indian equity/stock market ended with steep losses on Friday as Coronavirus cases showed no signs of abating while negative global cues further impacted sentiments.
S&P BSE Sensex slipped 674.36 points at 27,590.95.
Nifty 50 index shed 170 points at 8,083.80.
On the BSE, 1140 shares rose and 1099 shares fell.
In Nifty 50 index, 19 stocks advanced while 31 stocks declined.
IHS Markit announced Purchasing Managers’ Index (PMI) numbers for India yesterday. The headline seasonally adjusted IHS Markit India Manufacturing PMI fell from 54.5 in February 2020 to 51.8 in March 2020. Weighing on the headline figure was slowdown in production growth during March.
Banking stocks faced serious selling pressure. Among the private sector banks, RBL Bank (down 15.65%), Axis Bank (down 9.35%), IndusInd Bank (down 8.69%), Bandhan Bank (down 7.26%), City Union Bank (down 4.13%), Kotak Mahindra Bank (down 3.56%), Federal Bank (down 3.03%) and HDFC Bank (down 1.87%) declined. Continue reading India Market Report – 03Apr2020 →
Asian equity markets ended mostly higher on Monday as the Yen weakened after Japanese trade balance figures missed expectations, and oil prices held steady after posting their first weekly decline in five weeks on concerns over rising production and swelling stockpiles in the US.
Reports showed that Japan posted a merchandise trade deficit of 1,086.9 billion yen in January as exports slowed down due to a decline in US exports and the timing of Chinese New Year holidays. That missed forecasts for a shortfall of 625.9 billion yen following the 640.4 billion yen deficit in December.
Chinese shares ended higher after reports that pension funds are entering the stock market. Investor sentiment was also boosted after China’s securities regulator unveiled new rules on Friday restricting excessive and frequent fundraising by some listed companies. Continue reading Asian Equity Markets Review – 20Feb2017 →
The latest upmove in Sensex, in March 2013, has taken it past the 10 year trendline that was acting as the resistance (since 2011) on the upside at around 21300 (Nifty 6300). Now, the same trendline will act as support. Historically, all levels below the trendline have been a profitable for buying, and the Sensex has taken off after crossing this trendline in the last two occassions since 2004, after doing a test of its support strength. So there maybe a 5-10% correction before the next big upmove comes through. The major gainers will be the stocks linked to business cycles, like Banks, Financials, Energy, Materials, which are currently driving the Sensex higher. However, Indian market can not make and hold new highs if other countries are falling down. Global equity markets are correlated because Risk-on and Risk-off trades are playing across equity markets at the same time. A sharp rise of USD against other currencies is probably the biggest risk to Sensex upmove.