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Firm trade persists over Dalal Street
Mar-26-2020
Firm trade continued over the Dalal Street in late morning deals, with Sensex and Nifty holding strong gains of over 3% each. Traders remained optimistic, as the Department for Promotion of Industry and Internal Trade (DPIIT) has set up a control room to monitor in real-time the status of transportation and delivery of essential commodities amid the coronavirus lockdown in the country. It will also monitor difficulties being faced by various stakeholders during the lockdown period from March 25 to April 14. Market participants were seen taking a note of new United Nations report stating that action to reverse the depletion and degradation of the environment across Asia and the Pacific is a top priority if the region is to stay on course to meet the Sustainable Development Goals (SDGs).

On the global front, Asian markets were trading in green, even though Singapore industrial production fell in February after rising in the previous month. The data from the Economic Development Board showed that industrial production decreased 1.1 percent year-on-year in February, after a 3.5 percent increase in January. Excluding biomedical manufacturing, industrial output fell 2.5 percent in February. Among clusters, precision engineering expanded 26.2 percent annually in February and general manufacturing grew 16.1 percent. Transport engineering increased 10.9 percent and those of biomedical manufacturing and chemicals rose by 6.4 percent and 5.4 percent, respectively.

The BSE Sensex is currently trading at 29576.10, up by 1040.32 points or 3.65% after trading in a range of 28566.34 and 30099.91. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 2.82%, while Small cap index was up by 3.89%.

The top gaining sectoral indices on the BSE were Bankex up by 7.08%, Realty up by 6.46%, IT up by 3.08%, TECK up by 2.97% and Healthcare up by 2.73%, while Energy down by 0.04% was the lone losing index on BSE.

The top gainers on the Sensex were Indusind Bank up by 44.99%, Axis Bank up by 13.37%, HDFC up by 7.51%, Bajaj Auto up by 6.35% and HDFC Bank up by 6.35%. On the flip side, NTPC down by 2.63%, Maruti Suzuki down by 1.23%, Ultratech Cement down by 0.99%, HCL Tech. down by 0.78% and Mahindra & Mahindra down by 0.36% were the top losers.

Meanwhile, the Centre for Asia Pacific Aviation (CAPA) India in its preliminary report has said that India's aviation sector may incur losses of $3.3-3.6 billion in the Q1 (April-June) of 2020-21 in the eventuality of all air services including domestic remain shut until June due to coronavirus outbreak. It pointed out that the pandemic has had a significant impact on the aviation industry due to the stringent border controls by a host of countries and imposition of the travel ban on the people of other nationalities to contain the virus infection. 

The CAPA also sought urgent government intervention and coordinated industry response to address all the requirements of the aviation industry. It noted that the airline sector losses are expected to be around $1.75 billion while that of the airports and concessionaires at around $1.50-1.75 billion and another $80-90 million losses of the ground handling companies. Noting that the domestic airline sector was already vulnerable even prior to the advent of COVID-19, it said most Indian airlines have not structured their business models to be able to withstand even regular shocks, such as elevated fuel prices or economic downturns, let alone once-in-a-century events.

According to the CAPA, with few exceptions, Indian carriers have weak balance sheets and precarious levels of liquidity. It added that airlines have generated cash to stay afloat through advance sales or sale-and-lease back margins (and government infusion in the case of Air India), but with no cushion to be able to withstand downward cycles.

The CNX Nifty is currently trading at 8570.60, up by 252.75 points or 3.04% after trading in a range of 8304.90 and 8749.05. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 39.69%, Axis Bank up by 12.91%, Bajaj Finserv up by 7.50%, HDFC up by 7.17% and Infosys up by 6.51%. On the flip side, GAIL India down by 3.24%, NTPC down by 2.82%, HCL Tech. down by 2.50%, Indian Oil Corporation down by 1.35% and Ultratech Cement down by 1.06% were the top losers.

Asian markets were trading mostly in green terrain; Hang Seng gained 0.63 points to 23,527.82, Taiwan Weighted jumped 65.51 points or 0.68% to 9,710.26, KOSPI increased 15.23 points or 0.89% to 1,719.99 and Jakarta Composite surged 354.25 points or 9.00% to 4,291.88. On the other hand, Nikkei 225 slipped 724.16 points or 3.70% to 18,798.25, Straits Times declined 15.60 points or 0.62% to 2,489.87 and Shanghai Composite was down by 4.95 points or 0.18 % to 2,776.64.
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