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News and Impact
Expect market to open on a negative note on account of global cues. US Dow closed lower in volatile trading (intra-day volatility 900 points or 4%) as investors debated whether the spread of the coronavirus may be slowing in several major economies. U.S. equity futures erased losses and edged higher in early trading, signaling more volatility to come after the S&P 500 Index gave up a gain of as much as 3.5% Tuesday to close lower.
Select Asian markets bounced back into positive territory after the news that China has ended its lockdown of Wuhan city after a gap of 76 days. Nikkei Index bounced back into positive territory. Taiwan and South Korea Index recovered partially from the intra-day low. US Future slipped over half percent and SGX Nifty declined 156 points 1.7%. Japan Prime Minister officially declared a state of emergency for one month.
While the S&P 500 briefly reached a 20% gain from its March low on Tuesday, the highest coronavirus death tolls yet in the U.K. and New York state reminded investors the outbreak is far from contained. Still, New York’s number of new cases slowed and Italy reported its fewest new infections since March 13. Several European nations planned to ease restrictions. As of now 14.5 lakh affected by corona virus and death increased over 74000. Still, New York’s number of new cases slowed and Italy reported its fewest new infections since March 13. Several European nations planned to ease restrictions.
Brent Crude declined 9% to $32/bbl after sinking to the weakest level since the start of the month. Investors are weighing whether the world’s biggest producers will be able to strike a deal that cuts enough output to offset an unprecedented demand loss from the coronavirus outbreak.
Expect profit booking in the market after a smart rally yesterday. Positive factor that the both FIIs (Rs742cr) and DIIs net buyers (Rs423cr). Fall in corona virus cases globally may positive in the market. Traders buy on dips in the market. Indian market declined over 30% from the recent high. We are positive on HDFC, HDFC Bank, Bharti Airtel, Reliance, IPCA, Divi’s Lab.
Brokers Radar – Phillips Securities - Sun Pharma TGT 510 and Lupin Labs TGT 620, Jefferies TGT Maruti TGT 5500. Philips Securities – Tata Steel TGT 380. JSW Steel TGT 180. Bharti Airtel – CLSA TGT 690. Morgan Stanley overweight on Reliance Industries with TGT at 1544. Maruti overweight by JP Morgan with TGT at 6400.
Market summary - SBI reduces MCLR by 35bps of across all tenors, Government says it will ship hydroxychloroquine to U.S. after Trump threatens retaliation, Page Industries says lockdown to sale affect partially in March, Lupin announced the launch of Mycophenolic Acid Delayed-Release Tablets in US, Cadila gets US FDA final approval for Perphenazine tablet. Aurobindo Pharma faces class action suit in U.S. for hiding facts.
Maruti produced 92540 vehicle during the month of March against 136201 previous year – Positive, company produced nearly 1 lakh vehicle despite lock down of 21 days.
Media news that both Orient Paper and Glaxy Surface have started partial production – Positive.
Aurobindo Pharma Faces Class Action Suit in U.S. For Hiding Facts - A class action suit has been filed against some drug manufacturers, including Aurobindo Pharma Ltd. and Emcure Pharmaceuticals, in a U.S. court for allegedly concealing facts about a cancer-causing agent, N- nitrosodimethylamine presence in metformin medicine. – Negative.
SBI reduces MCLR by 35bps of across all tenors SBI by Apr - The country's largest lender SBI on Tuesday said it has cut the marginal cost of funds based lending rate (MCLR) by 35 bps across all tenors from April 10. The one-year MCLR comes down to 7.40 per cent per annum from 7.75 per cent per with effect from April 10, 2020 – Positive after RBI cut interest rate by 75bps. Expects other Banks will follow after SBI cut MCLR.
Deepak Nitrite gets permission to produce 2HEN at Vadodara unit – Positive.
Government says it will ship hydroxychloroquine to U.S. after Trump threatens retali
By: via @AlliesFin Serve T.ME/ALLiESFiN
