Market Outlook – March 20, 2020

Benchmark indices saw another fall yesterday with Sensex down by 2.01% and Nifty down by 2.42%. Nifty bank was also down by 2.41% and Rupee value depreciated 1.02% to almost reach ₹ 75 a dollar to end at ₹ 74.9875 a dollar. Indian 10-year bond yields are up +0.1140.

All the Asian (Asia Pacific) markets have slid down while the European and American markets have ended in a green (Dow Jones up by 0.95%, S&P500 up by 0.47%). However, the US futures have plunged (Dow Jones down by 0.96%, S&P500 down by 1.17%). US 10 year bond yields have also gone in red at -0.0511.

Oil prices have been quite volatile. While Brent Crude price is down by 0.84% at $28.23 per barrel, WTI Crude is up 2.22% at $25.78 per barrel.

Yesterday in his speech, PM Modi announcement a “Janata curfew” on Sunday March 22. This may have slight impact on the market considering the ongoing panic and increased sensitivity of the retail investors towards every narrative and event.

Watchlist for the day:

1. SBI – the Board is considering an extension in the approval to raise equity capital of ₹ 20,000 crores.

2. Indiabulls Housing Finance – the company has taken personal guarantee of Rana Kapoor and family who have mortgaged their property to Yes Bank and taken a loan of ₹ 285 crores on the property. Also, no loans are outstanding for the same.

3. ICICI Lombard Insurance – it has come up with an insurance cover for Coronavirus, in a group insurance mode.

4. Bandhan Bank – recently replacing Yes Bank on the index, it has dictated how a shutdown of 15-20 days will stop disbursements and collections and withdrawal of government entities deposits that constitute to less than 1% of the overall deposits due to Yes Bank incident.

5. Jindal Stainless – it declared that no loans have been raised against promoter’s pledged shres and no margin requirements or calls made by the lenders due to the recent plunge in the share price.

6. Shobha – issue of debentures of ₹ 270 crores by way of private placement has been approved.

7. Reliance ADAG Group – it declared all its relations with Yes Bank are smooth and under proper compliance. It has no exposure to Rana Kapoor or his family in any way.

8. Tata Motors – Jaguar Land Rover suspends production in UK temporarily. Operations in India and Brazil will continue as of now.

With Asian markets bearish, increasing cases of coronavirus, a “Janata curfew” declared for a day and a recession already underway; Rupee value depreciating to reach ₹75 level, volatile oil prices and US bond yields sliding; all may contribute in pulling Indian market down even further.