Market Outlook – March 18, 2020

US markets show some positive movement today morning (Dow Jones +5.2%, Nasdaq +6.2% and S&P500 +6%). The driver was the $850 billion package target given out by the White House to address the economic hit from Coronavirus.

Another day of slide down in the Indian markets have made the PE ratios of many stocks attractive and opened a lot more opportunities to buy stocks from long-term point of view.

Oil markets are still under pressure. Brent crude oil price is already below $30 levels, WTI crude oil is at $26 levels and expected to reach $20 levels considering the current status of demand for oil amid Coronavirus. This can be one of the reliefs for Indian markets.

Stocks under the radar:

1. Yes Bank – with RBI’s reassurance to the depositors and the rescue nod by SBI and other players in the market, Yes Bank’s shares recovered yesterday from its all time low of ₹5.5. With the reconstruction underway, positivism seems to shine.

2. RBL Bank – it loses 3% of its deposits from the state government and other institutional investors. Though the banks assures of its stable financial health, the Yes Bank incident is keeping investors’ fears high.

3. Emami Ltd. – it is considering a buyback within the 10% of its reserves window (that does not require shareholders’ approval) of approximately ₹ 900 to ₹ 1000 crores. This will raise its promoters’ stake from 52.74% to around 58%. It expects the interim dividend to keep the retail investors’ morale intact.

4. VodafoneIdea – government have requested a relief for the AGR dues of the Telecom sector. If it comes through, it may prove to become a breathing space for the company to focus on its operations.

5. Syndicate Bank – the Board has approved equity share exchange ratio of 158 equity shares of ₹ 10 each of Canara bank for every 1000 equity shares of ₹ 10 each of Syndicate Bank for its amalgamation into Canara Bank.

6. Apollo Tyres – HDFC Mutual Fund increased its stake in Apollo Tyres from 5.05% to 7.05%.

7. HSIL – HDFC Mutual Fund reduced its stake from 5.17% to 3.14%.

8. Private Healthcare laboratories like Metropolis and Thyrocare may be in the light after government urges private labs to initiate virus tests at no cost.

Rupee value has gained yesterday to reach ₹ 74.21 against a dollar.

India VIX, the volatility index, yesterday surged 6.88% indicating high volatility. Hence, a higher trading range of about 500 pts may be expected.

A stock-specific approach may be best at such a time of volatility. Many stocks are in the oversold zone (one of the ways to understand that may be by using a 14 period RSI), meaning they can be bought at lower rates for long term.

MSc Finance graduate from the London School of Economics and Political Science (LSE)
Avatar for Ria Vaghela

Ria V Vaghela is an M&A Executive at RSM UK and an MSc Finance graduate from the London School of Economics and Political Science (LSE). She has worked at Jefferies, Dial Partners and 7i Capital prior to RSM UK gaining an experience of about 1.5 years. She has also worked as an Editor and Content Writer for The Representative Media. Apart from finance, she is interested in reading books on psychology and economics and also likes to paint and play lawn tennis


  1. Avatar for Ria Vaghela Vijay M. Vaghela : March 18, 2020 at 8:45 am

    Yes. Market will improve upon threat of corona virus get reduce and all govt. Take timely action. Wait till 5th april 2020.

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