Indian Market Outlook:
The Key Bechmark indices fell over 6-7% this week due to rising cases in India and Worldwide. The number of coronavirus infections in India inched closer to 3,000 on Friday, with a surge in Delhi, Tamil Nadu and Telangana. The United States also recorded nearly 1,500 deaths from COVID-19 between Thursday and Friday. The Sensex fell 2224.64 points or 7.46 % to settle at 27590.95. The Nifty 50 index fell 576.45 points or 6.66 % to settle at 8083.80. BSE Mid Cap Index fell 318.81 points or 3.03 % to settle at 10219.05 while the BSE small Cap index fell 0.93% to settle at 9409.04. Over the week, FIIs were the net sellers for the week, sell equities worth Rs.10486.31 crore while DIIs were the net buyers of Rs.6902.75 crore. Crude Oil also posted a record weekly jump following US President Donald Trump’s tweet that Saudi Arabia and Russia have agreed to cut output by 10-15 million barrels however the deal is not confirmed yet. While the government and the Reserve Bank of India (RBI) have provided relief packages, there are more needs to be done as the shock because of the sudden stoppage of economic activities is huge. Going forward, the number of rising coronavirus cases will further decide the direction of the market. Till that time COVID-19 led uncertainty remains, pharma and consumption stocks which have leadership positions have certain elements of a margin of safety.
Latest Spot Price (in US $)
Global Weekly Events
Domestic Economy Indicators
|RBI Policy Rate||Policy Repo Rate||4.40%||5.15%|
|Reserve Policy Rate||4.00%||4.90%|
|Inflation Rate||Wholesale Price Index||2.26%||3.10%|
|Consumer Price Index||6.58%||7.59%|
|Trade Data||Export ($ Million)||27650||25970|
|Net Inflow (Cr)||FII||DII|
|Top Gainers||Closing Price||Prev Close||Chg (%)|
|Top Losers||Closing Price||Prev Close||Chg (%)|
|Kotak Mahindra Bank||1140.85||1372.95||-16.91|
- India’s manufacturing sector growth slowed to a four-month low in March, with the nationwide lockdown to contain the covid-19 outbreak throwing normal economic activity out of gear, according to a private survey released on Wednesday. The manufacturing Purchasing Managers’ Index (PMI) for India declined from 54.5 in February to 51.8 in March. A figure of above 50 indicates expansion, while a sub-50 print signals contraction. The survey by data analytics firm IHS Markit tracks new orders, output, jobs, suppliers’ delivery time, and stocks of purchases for around 400 manufacturers.
- Buoyed by a rise in the output of coal, cement and electricity, India’s eight infrastructure industries grew at an 11-month high in February, although the recovery is unlikely to be sustained because of the disruption caused by Covid-19. The Index of Eight Core Industries rose 5.5% in February, data released by the government showed on Tuesday. The growth estimate for January was revised to 1.4% from 2.2% assessed earlier. Growth for the April-February was at 1%, sharply lower than 4.2% in the same period a year earlier. The eight core infrastructure industries in the index are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
- A nationwide lockdown to prevent the spread of coronavirus has brought an already struggling auto industry to its knees. The country’s automobile sales are down by an average 64 per cent as all manufacturing plants have been shut since the lockdown announced on March 24. Maruti, which sells one in every two cars in India, said it had sold 83,792 in March, down 47 per cent from a year earlier. But the company said the number was not comparable with 2019 due to the suspension of operations from March 22. Mumbai-based Mahindra & Mahindra (M&M) reported a 88 per cent year-on-year fall in its passenger vehicle (PV) sales for March amid the lockdown.
- India levies higher tariffs for medical product imports than the average applied tariff rates of the member countries of the World Trade Organisation (WTO), a report on trade in medical products critical for the global response to the COVID-19 pandemic released by WTO on April 3 says. While the average tariff rate of all WTO member countries for medical products is 4.8 per cent, it is 11.6 per cent for India. More specifically, India levies 10 per cent tariff on medicines as against a WTO average of 2.1 per cent, 15 per cent on medical supplies as against 6.2 per cent (WTO average) and 9 per cent on medical equipment as against WTO average of 3.5 per cent.
- HDFC Bank Ltd.’s advances and deposits rose in the quarter ended March at a time when smaller peers faced operational challenges and as the nation went under a lockdown following the novel coronavirus outbreak. India’s largest private lender informed the exchanges today that its advances grew 6.3 percent quarter-on-quarter to Rs 9,93,000 crore while deposits rose 7.4 percent over the previous quarter to Rs 11,46,500 crore. On an annual basis, advances rose to a four-quarter high of 21 percent, while deposits grew 24 percent—the third consecutive quarter when the metric registered growth over 20 percent. The bank’s CASA (current and savings account) ratio rose to 42 percent from 39.5 percent in the previous quarter and 42.4 percent a year ago.
- Rating agency Moody’s Investors Service has placed the domestic and foreign currency issuer ratings for IndusInd Bank Ltd. under review for a potential downgrade, it said in a statement on Friday. The rating action was due to the bank’s business profile, which is prone to more risks in the current macroeconomic scenario, Moody’s said. The bank’s current issuer rating is at Baa3. Moody’s has also placed IndusInd Bank’s baseline credit assessment of ba1 under review for downgrade.
- FMCG major Nestle India on Saturday announced an initial grant of Rs 15 crore for providing food and essential groceries to the needy amid the coronavirus lockdown. It will also support purchase of medical equipment for hospitals to fight against the Covid-19 outbreak, Nestle India said in a statement. The company has already started with a contribution of Rs 1 crore to Narayana Hrudayalaya Foundation for purchase of ventilators for Delhi/NCR.
- Wall Street dipped on Friday as the novel coronavirus abruptly ended the longest spell of U.S. employment growth on record, but declines were limited by a surprise expansion in the U.S. services sector. The Labor Department’s report said a recession was underway as business activities have come to a standstill, but investors feared it did not reflect the full extent of the economic damage as the survey only considered data until mid March.
- The United States recorded nearly 1,500 deaths from COVID-19 between Thursday and Friday, according to the Johns Hopkins University tracker, the worst 24-hour death toll globally since the pandemic began. With 1,480 deaths counted between 8:30 pm (0030 GMT) Thursday and the same time Friday, according to the university’s continuously updated figures, the total number of people who have died since the start of the pandemic in the United States is now 7,406.
(Source: Bloomberg Quint, Economic Times, Business Today, Business Standard, Investing,CNBC TV18 Moneycontrol, livemint)
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