The Sensex plunged a huge 3,935 points to close at 25,981.24 and the Nifty fell 1,135 points to end at 7,610. BSE Midcap and Smallcap indices plunged 12.83 percent and 12.27 percent, respectively.
Investors lose over Rs 14 lakh crore in terms of market capitalisation. The average market capitalisation of the BSE-listed companies fell from Rs 116.09 lakh crore recorded on 20 March to Rs 101.9 lakh crore as on March 23.
According to the pivot charts, the key support level for Nifty is placed at 7,409.48, followed by 7,208.72. If the index moves up, key resistance levels to watch out for are 7,985.13 and 8,360.02.
Nifty Bank closed 16.73 percent down at 16,917.65. The important pivot level, which will act as crucial support for the index, is placed at 16,173.96, followed by 15,430.23. On the upside, key resistance levels are placed at 18,278.56 and 19,639.43.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Wall Street’s slide deepened on Monday as an unprecedented moves by the US Federal Reserve to shore up credit across the economy proved insufficient to sooth investors’ fears about the swiftly-spreading coronavirus.
The Dow Jones Industrial Average tumbled 3.04% to end at 18,591.93 points, while the S&P 500 lost 2.93% to 2,237.4. The Nasdaq Composite dropped 0.27% to 6,860.67, its overall decline cushioned by a 3.07% rise in Amazon.com.
Asian stocks rallied on Tuesday as the U.S. Federal Reserve’s sweeping pledge to spend whatever it took to stabilize the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 1.2%, though that followed a drop of almost 6% on Monday. South Korea and Australia also recouped a little of their recent losses.
Trends on SGX Nifty indicate a positive opening for the index in India with a 416 points gain. The Nifty futures were trading at 7963 on the Singaporean Exchange around 07:30 hours IST.
SEBI comes out with guidelines for encumbrance on REITs, InvITs
Markets regulator Sebi on Monday put in place a framework for invocation as well as encumbrance on units of real estate and infrastructure investment trusts. In a separate circular, Sebi has also extended the regulatory due date for filing and compliance for real estate investment trusts (REITs) and infrastructure investment trusts (InVITs) for the financial year ending March 31, by one month over and above the timeline in the wake of coronavirus pandemic.
In view of developments surrounding the spread of COVID-19, “a need for temporary relaxation in compliance requirements for REIT and InvIT is warranted”, it added.
Crude oil futures rise, but support seen weak
US crude oil futures climbed nearly 3% on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices. West Texas Intermediate (WTI) crude futures for May delivery rose $0.67, or 2.9%, to $24.03 as of 2353 GMT, adding to gains on Monday. Brent futures for May delivery rose 52 cents, or 1.9%, to $27.55 as of 0015 GMT.
IRDAI asks insurers to provide 1-month grace period for renewal premium payments
Insurance regulator Irdai on Monday asked life insurers to provide their customers an additional window of up to 30 days for paying renewal premiums in view of disruptions caused by lockdowns after the coronavirus outbreak.
“In case of health insurance policies, the insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy,” said the Insurance Regulatory and Development Authority of India (Irdai) in a circular. In case of life insurance policies, there is a grace period for payment of renewal premiums, it said, and added insurers have been asked to enhance the grace period by additional 30 days if desired by the policyholders.
SEBI tweaks framework for stock brokers’ risk mgmt capabilities
Markets regulator Sebi on Monday came out new guidelines for stock brokers with regard to entering risk-reduction mode, as part of efforts to bolster their risk management capabilities. The decision has been taken after consultations with various stakeholders, the Securities and Exchange Board of India (Sebi) said in a circular.
The criteria for entering the risk-reduction mode for brokers with regard to operationalisation of the interoperability among clearing corporations has been revised. “… stock brokers shall mandatorily put in risk-reduction mode when 90 per cent of the stock broker’s collateral available for adjustment against margins gets utilised on account of trades that fall under the margining system,” Sebi said.
Rupee plummets 102 paise to all time low of 76.22 against dollar
The rupee on Monday tumbled by 102 paise to settle at a lifetime low of 76.22 (provisional) against the US dollar as domestic equities came under pressure following a sharp surge in coronavirus cases in India. Forex traders said market participants are concerned that the sharp rise in coronavirus cases, which has crossed over 400 in the country, could weigh on the economy.
The rupee which opened on a weak note at 75.90 at the interbank forex market, finally settled at 76.22 against the US dollar, registering a decline of over 102 paise over its last close.
RBI prepones second tranche of g-sec buying under OMOs to March 26
The Reserve Bank of India (RBI) on March 23 said it has preponed the second tranche of purchase of Rs 15,000 crore of government securities under open market operations (OMOs) to March 26. The OMO purchase auction was earlier scheduled for March 30. “On review of current liquidity and financial conditions, the RBI has decided to advance the second tranche of purchase of government securities under OMOs for Rs 15,000 crore to March 26, 2020,” the RBI said in a release.
The four government bonds to be bought by the RBI in the auction include 8.08 percent-2022; 7.68 percent-2023; 7.27 percent-2026 and 7.17 percent-2028, the release said.
NSE defers index rebalancing until further notice
The National Stock Exchange (NSE) on Monday said it has deferred index rebalancing until further notice. This also includes quarterly rebalancing of shares outstanding and investible weight factors, the exchange said in a press release.
NSE said it will continue to monitor market conditions and announce the revised date of implementation of index rebalancing changes by providing two-weeks notice.
Centre mulls stimulus package for MSMEs: Report
The coronavirus outbreak has ravaged the fortunes of companies worldwide, forcing governments to announce measures to mitigate the impact. Already suffering due to a liquidity crunch, the micro, small and medium enterprises (MSMEs) may be handed a lifeline with the government almostclose to finalising a stimulus package for the beleaguered sector, according to a report in Hindustan Times.
The stimulus package, being reviewed by the Prime Minister’s Office (PMO) may include up to 3 percent additional interest subsidies. Once the fiscal and structural changes get the PMO’s nod, the Cabinet will review it.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 2,989.29 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,082.24 crore in the Indian equity market on March 23, provisional data available on the NSE showed.
With inputs from Reuters & other agencies