Benchmarks end volatile day on lower note

Indian equity indices ended highly volatile day of trade on lower note on Monday, as the government is set to extend a lockdown to contain the spread of the coronavirus, while a rise in oil prices also weighed on sentiments. Key indices made pessimistic start and traded with heavy losses, as traders remain concerned with the World Bank in its South Asia Economic Focus report stating that India may record its worst growth performance since the 1991 liberalisation this fiscal year (FY21) as the coronavirus outbreak severely disrupts the economy. It said India's economy is expected to grow 1.5 per cent to 2.8 per cent in FY21. Besides, overseas investors pulled out a net Rs 9,103 crore from the Indian markets in April so far as the Covid-19 crisis triggered a return to safe haven assets like gold and dollar-denominated securities. 

However, markets recovered partly from the lows of the day in afternoon session, taking support from data showing that India's industrial output, measured in Index of Industrial Production (IIP), grew 4.5% in February 2020, mainly on account of higher output in mining, manufacturing and electricity sector. The output for February is the highest number since July 2019 - when it stood at 4.3%. IIP had grown by 0.2% in February 2019 and 2% in the preceding month (January 2020). Though, markets failed to hold the recovery and fell sharply in late afternoon session, as anxiety remained among traders with Federation of Indian Export Organisations (FIEO) stating that India’s exports sector may witness about 15 million job losses and rising non-performing assets (NPAs) amongst exporting units, following the cancellation of over 50 percent of orders and gloomy forecast for the future due to the Covid-19 pandemic. Investors also awaited cues from CPI data for March and the minutes of the Monetary Policy Committee’s latest meeting scheduled to be released later in the day.

On the global front, Asian markets ended lower on Monday with investors cautious on reports of an international deal to shore up oil prices and tentative signs of progress in efforts to combat the coronavirus pandemic. European markets closed on the account of Easter holiday. Back home, majority of banking stocks ended lower with RBI data showing that bank credit growth decelerated to an over five-decade low of 6.14% in the fiscal ended March 31, 2020, amid a faltering economy, lower demand and risk aversion among banks.

Finally, the BSE Sensex lost 469.60 points or 1.51% to 30,690.02, while the CNX Nifty was down by 118.05 points or 1.30% to 8,993.85.     

The BSE Sensex touched high and low of 31,195.72 and 30,474.15, respectively and there were 7 stocks advancing against 23 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.93%, while Small cap index was down by 0.46%.

The gaining sectoral indices on the BSE were Telecom up by 4.82%, Capital Goods up by 3.60%, Industrials up by 2.37%, Metal up by 2.09%, Basic Materials up by 1.53% while, Realty down by 4.92%, Consumer Durables down by 3.71%, Finance down by 2.71%, Consumer Discretionary down by 2.32%, Auto down by 2.29%, Bankex down by 2.14% were the losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 6.57%, Bharti Airtel up by 4.64%, Indusind Bank up by 3.76%, Ultratech Cement up by 3.50% and NTPC up by 1.84%. On the flip side, Bajaj Finance down by 10.27%, Mahindra & Mahindra down by 4.80%, Titan Company down by 4.73%, Hero MotoCorp down by 3.86% and ICICI Bank down by 3.44% were the top losers.

Meanwhile, a day after Federation of Indian Export Organisations (FIEO) warned of 15 million job losses unless an immediate incentive package is announced by the government, the Commerce Ministry has said that it has taken several measures to address hardships faced by exporters due to COVID-19 pandemic.

The steps enlisted by the ministry included extensions of foreign trade policy by one year, export obligation under advance authorisation and export promotion capital goods scheme, the validity of registration cum membership certificate, last date for filing claims under services and goods export from India schemes, for filing RoSCTL (rebate of state and central taxes and levies) claims, valid period of all status holder certificates, and replenishment scheme for gems and jewellery.

The Commerce Ministry also underlined the steps taken to facilitate units in special economic zones like extensions have been given filing quarterly progress report, annual performance reports, and permission to take desktop/laptop outside SEZs by IT and non IT units. For agri exporters, it said that certification bodies have been advised to extend the validity of organic certificates, and registration of packhouses.

The CNX Nifty traded in a range of 9,112.05 and 8,912.40 and there were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 6.35%, Hindalco up by 6.00%, Bharti Airtel up by 4.46%, Adani Ports &SEZ up by 4.41% and Dr. Reddy's Laboratories up by 3.82%. On the flip side, Bajaj Finance down by 10.26%, Zee Entertainment down by 8.44%, Bajaj Finserv down by 6.85%, Mahindra & Mahindra down by 4.99% and Titan Company down by 4.68% were the top losers.

Asian markets ended lower on Monday after data from Washington-based Johns Hopkins University showed global corona virus death toll increased to 114,245 and the overall number of confirmed cases stood at 1,850,527. The United States now accounts for highest number of cases and deaths in the world at 557,571 and 22,108, while France, Germany, Italy and Spain reported a slowdown in new corona virus cases, offering investors some relief. Japanese shares ended lower on a stronger yen versus the dollar and investors were disappointed over a lack of asset-buying from the Bank of Japan. Meanwhile, traders also shrugged off a historic agreement by major oil exporters to slash supply, putting an end to a spat between Russia and Saudi Arabia that sent crude prices tumbling. Market in Hong Kong was closed for Easter Monday.