A former defense and trade minister, Nirmala Sitharaman became the first woman finance minister of India after Indira Gandhi.

She has inherited an economy facing a number of risks.

She faces immense challenges as finance minister. India's economy is starting to splutter on the back of a slow-down in consumption and private investment.

Fixing this and jump-starting the economy are the first order of business.

The data released on Friday was disappointing at different levels.

Lower growth in GDP, stagnant growth in core sector in April 2019, and the government just about managing the 3.4% deficit number in FY19 pose puzzles for the new Cabinet which assumes responsibility of kick-starting the economy.

A look at key macroeconomic indicators presents a gloomy picture.

Sinking GDP Growth Means FM Nirmala Sitharaman has to Push for Sweeping Reforms

According to the data released by the Central Statistics Office on Friday, gross domestic product (GDP) grew by only 5.8% in the last quarter of financial year 2019 (FY19), between January and March.

GDP Growth Slips to 5-Year Low

The data demonstrates GDP growth slowing steadily, from 8 to 7 to 6.6% in the first three quarters of FY19.

The signs of slowdown are visible throughout the economy.

Growth of Core Sector Industries Remained Flat

India's core economy grew at 4.3% in FY19, its second slowest pace in the past 5 years, down from 4.9% in FY15, according to latest data by the ministry of commerce and industry.

The 8 core industries include Coal, Crude Oil, Natural Gas, Refinery, Fertilisers, Steel, Cement, and Electricity.

8 Core Sectors Report Flat Growth in FY19

The growth rate is also flat since fiscal FY18 which had also recorded a 4.3% growth.

Manufacturing and Services Sector Activity Decelerates

Core sector growth will have a direct impact on the Index of Industrial Production (IIP) as these sectors account for a major chunk of total factory output.

Worries Rise as Factory Output Shrinks in March

The Index of Industrial Production (IIP) and the Manufacturing Purchasing Managers' Index (PMI) are used to gauge the level of activity in the manufacturing sector.

What Does the PMI Say?

The country's manufacturing sector performance fell to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment.

The Nikkei India Manufacturing Purchasing Managers' Index declined from 52.6 in March to 51.8 in April, reflecting weakest improvement in business conditions since August 2018.

However, this was the 21st consecutive month that the manufacturing PMI remained above the 50-point mark.

In PMI parlance, a number above 50 means expansion, while a score below that denotes contraction.

The April PMI data indicated a softer increase in new orders had restricted growth of output, employment, and business sentiment.

Further, the Indian service sector lost momentum in April, with rates of new business and output growth both cooling to seven-month lows.

Indian Service Sector Loses Momentum Too

Falling from 52.0 in March to 51.0 at the start of FY19, the seasonally adjusted Nikkei India Services Business Activity Index pointed to the weakest upturn in output since last September.

Besides these, there are many other indicators of a slowdown.

A decline in consumer demand, a slowdown in government spending, and weak private investment have likely impacted India's growth in the fourth quarter.

One such high frequency indicator is automobile sales.

What do these numbers indicate?

Vehicle sales are a very important economic indicator about how the people of India feel about their economic prospects.

After all, no one is forcing anyone to buy a car and given that if a consumer buys a car, he chooses to make a down payment and/or take on an EMI.

This is only possible if the consumer is feeling positive about his future economic prospects.

Automobile Sales Skid as Demand Remains Sluggish

On Saturday, India's largest carmaker, Maruti Suzuki, reported a 22% decline in sales in May, the lowest in seven years.

Other auto-makers such as Tata Motors, Eicher Motors, and Hero Moto Corp reported declines in sales too.

All these economic indicators basically provide evidence of the Indian economy slowing down further since January 2019.

Another major area that needs immediate attention by the government, is job creation.

According to a CMIE survey, the unemployment number stands at 41 million people. That is too big a number to be ignored.

Now, job creation at such a mass level won't be a walk in the park. To set the wheels in motion, the government will have to look at infrastructure spending.

Capacity expansion in new projects has seen a gradual slowdown in the past few years.

Infra Capacity Expansion Likely to Be the Key Focus of the Modi Government

From Rs 3.3 trillion in June 2018, the number has come down sharply to Rs 2.1 trillion as of March 2019.

Co-head of research, Tanushree Banerjee believes this is first area the government will look to focus on.

Apart from creating jobs in the infrastructure sector, it opens a lot of other avenues.

Here's an excerpt of what she wrote in The 5Minute WrapUp:

• Better infrastructure will mean better connectivity to non-metros. This will attract manufacturing companies to set shop in these towns. It will give a boost to the urbanisation of the population.
  
  This is a trend I see clearly playing out in the coming years.
  
  Infrastructure spending -> Improved roads -> Increased two-wheeler sales.
  
  It is just one of the 50 irreversible trends I believe will carry the Sensex to 1,00,000.

Typically, when the capacity utilisation rises, it prompts companies to expand their capacities. If this gradual pick-up sustains, it could lead to a pick-up in private sector investment.

Thus, a revival in the investment cycle could be underway despite the current economic slowdown.

And, as far as equity markets are concerned, participants were expecting a weak fourth quarter growth data.

As such, the now published data may not weigh on the market but will raise expectations from the government and the RBI.

The pressure points in the form of finance, tax rates, infra expenditure, specific sector-related policies etc, must be addressed.

While the weak GDP data will be an important input for the Union Budget.

Most investors are now keen to know what's in store in the first week of July.

Warm regards,
Rini Mehta

Indian stock markets collapsed in early trade today...and while there was some recovery towards the end, we still ended deep in the red.

Here are 10 points to note...

1. The Sensex nosedived as much as 1,460 points in the first few minutes of trade. The Nifty dropped to a low of 10,827, down 442 points intra-day. The markets however trimmed some of the losses during the course of the day.

   There was a selloff across sectors along with panic selling in the smaller indices too. The BSE Midcap and BSE Smallcap indices ended down 3.4% and 2.9% respectively.

2. The Reserve Bank of India's (RBI) decision to put Yes Bank under moratorium led to the biggest ever fall in share price of the private lender. Shares of Yes Bank fell as much as 85% to Rs 5.6 before recovering towards the end of the day to end at Rs 16.2, down 56%.

   The banking regulator has also put a cap on withdrawal at Rs 50,000 for Yes Bank customers.

   The RBI took over from the board of the Yes Bank for 30 days, saying it would work on a revival plan.

3. RBI's move had a ripple effect on other banking stocks, with some falling very sharply to begin with.

   Shares of RBL Bank fell as much as 15%, while IndusInd Bank and State Bank of India (SBI) dropped 7-8%.

4. The coronavirus cases outside of China have been increasing rapidly, making inroads into US, Europe and Middle East, which made investors more worried about global growth going ahead. And more recently, India too.

   Today, the number of cases breached the 100,000 mark.

   South Korea, Italy and Iran reported highest infected cases outside of China, while cases are increasing in United States and other parts of Europe as well.

   Note that market participants are seen taking a flight to safety as stock markets see a sharp fall post the coronavirus impact.

5. Overnight the US indices had recorded sharp losses. This was yet another negative cue awaiting Indian markets on open today.

   The Dow Jones Industrial Average fell 3.6%, while the S&P 500 lost 3.4%. The Nasdaq Composite dropped 3.1%.

   During the day, as the Asian markets opened, there was further negative news... Japan's Nikkei fell more than 3%, while Hong Kong's Hang Seng, Australia's ASX 200 and South Korea's Kospi dropped over 2%.

6. Foreign investors (FIIs) are on a selling spree. Reportedly, in the last 14 sessions, FIIs have withdrawn a net Rs 183.4 billion from Indian markets. That's a lot of money...a lot more than the domestic mutual funds have been able to pump in. The intense selling pressure from the FIIs could only have contributed to this sell off.

7. The Indian rupee today slid past 74 levels against the US dollar, increasing the risk-off sentiment.

   The rupee today traded in a range of 73.69 to 74.08 against the US dollar as compared to the previous close of 73.31. A falling currency is not great news at all.

8. Even as there was negative news all around, hope emerged from oil. Oil slid on Friday as worries about demand for fuel being reduced by the global coronavirus outbreak were heightened. The fact that there was concern over non-OPEC (Organization of the Petroleum Exporting Countries) crude producers not yet having agreed to cut output further to support prices helped in the sell off.
9. With today's fall the Index has lost 9% since the start of 2020.
10. While the day ended deep in the red, some stocks stood out. Bajaj Auto, Maruti Suzuki and Asian Paints were among the few gainers.

In under 3 years, Yes Bank has gone from being a darling of investors to a pariah. Here's a look at the events that led to the crisis in 10 points.

1. 2017: RBI forces Yes Bank to disclose that there is big divergence in its non-performing loans of Rs 42 billion reported in the company's audited accounts for the year ended March 2016. The divergence further widened to almost Rs 64 billion a year later. To put this in perspective, the RBI audit had pegged its total gross non-performing assets (NPAs) at 5% for FY16, against the bank's own assessment of only 0.8% for the same year.
2. September 19, 2018: Not surprisingly, a year later, RBI refuses to give Yes Bank CEO Rana Kapoor an extension to his term as MD. The apex bank asks Kapoor to step down by end of January 2019. Kapoor fights back...but it always seemed like a battle he was set to lose.
3. November 27, 2018: Rating agency Moody's cuts bank's rating outlook to 'negative' from 'stable' citing concerns over corporate governance. This is a big whammy...for a bank, its credit rating is everything.
4. January 24, 2019: Yes Bank hires the head of Deutsche Bank India, Ravneet Gill, as its new CEO. There's hope...even though Gill has not run a bank of this size before. The stock price rallies 66% in the days following the appointment.
5. May 14, 2019: RBI appoints former central bank Deputy Governor R. Gandhi as additional director to Yes Bank's board - a rare move signaling an increased level of scrutiny on the lender.
   
   Yes Bank reports 91% drop in profit in 1QFY20, provisions surge and gross NPA ratio stands at 5%.
6. October 3, 2019: CEO Gill says bank is in talks with private equity firms, strategic investors and family offices to raise additional capital. Again, this appears to be good news.
7. October 31, 2019: Yes Bank gets binding investment offer of US$ 1.2 billion from a global investor. But this does not go down well as credibility of the likely largest investor is questioned in the media.
8. November 1, 2019: Yes Bank reports bigger-than-expected loss for 2QFY20, NPA to loans ratio swells to 7.4% and provisions swell to Rs 13.4 billion.
9. March 6, 2020: It's been months now and there is little progress on capital raising (other than rumours floating around). RBI takes over Yes Bank's board and imposes a month-long moratorium, imposing a limit of Rs 50,000 on withdrawals.
10. March 7, 2020: Stock price of Yes Bank crashes by nearly 60%. At it's worse the stock was down at Rs 5.7 that day. RBI shares a restructuring plan for Yes Bank...basically a bailout by SBI.

Well, then...that's the Yes Bank timeline. At the time of writing, stock price of Yes Bank was trading up by 31%.

Next time, when you think of buying a banking share...or making a deposit...be sure you understand the risk.

Crude oil prices crashed more than 30% on Monday.

In fact, this was the worst price dip since the 1991 Gulf War as Brent prices plunged to US$ 31 per barrel.

Here are 10 key things you need to know about the economics of falling crude oil prices:

1. Oil prices have collapsed thrice because of demand destruction: in 1979, 2008, and 2014.

   1979: The trigger for oil price increase was the Iranian Revolution and the Iran-Iraq war. Due to this, oil prices rose from US$ 50/barrel to above US$ 100/barrel between January 1979 and April 1981. Then, new production from the North Sea, Mexico, Alaska, and Siberia flooded the market. By March 1986, prices had fallen to US$ 27/barrel.

   2008: Oil touched US$ 150/barrel and was quickly followed by the financial crisis and recession which led to crash in crude oil prices as well.

   2011-2014: Oil was above of US$ 100/barrel, several years of triple-digit oil prices led to a near doubling of shale production in the US, a volume that helped trigger the crash in 2014.

2. 2016: Saudi Arabia and Russia came together to form the so-called OPEC+ alliance after oil prices plunged to US$ 30 a barrel. Since then, the two leading exporters have orchestrated supply cuts of 2.1 million barrels per day.
3. 2019: Prices went on to witness huge volatility in 2019 amid declines in US inventories and rising geopolitical tensions in the Middle East and the world's two biggest oil consumers - United States and China.
4. July 2019: The OPEC and allies sat to discuss whether to extend a deal on cutting 1.2 million barrels per day of oil production. Owing to the above geopolitical tensions, weaker demand outlook, and oversupplied market, the OPEC and allies rolled over their production cuts into March 2020. Volatility intensified further in July after US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.
5. March 2020: Saudi Arabia wants to increase the cuts to 3.6 million barrels per day through 2020 to check the weaker consumption. However, Russian President Vladimir Putin, refused to go along with the plan and his energy minister, Alexander Novak signaled a fierce battle to come for market share when he said countries could produce as much as they please from April 1.
6. 9^th March 2020: Crude oil prices fell 31% on Monday after Saudi Arabia launched an oil price war with Russia. Saudi Arabia slashed prices and said it is preparing for a big increase in crude oil production in April. Prices were cut by US$ 4-6 a barrel to Asia and US$ 7 to the United States for April delivery. Saudi Arabia reportedly prepares to increase its crude production above 10 million barrels per day (bpd) in April, after the current deal to curb production expires at the end of March. A major reason for these production cuts is also to arrest the swooning oil prices owing to the novel Coronavirus outbreak.
7. Worse than the Previous Crashes: The current situation is more worse than the November 2014 crash, when such a price war was started, as it comes to a head with the significant collapse in oil demand due to the Coronavirus outbreak. It also reflects the deep underlying concern of a lack of consensus among the OPEC nations regarding production cuts.
8. Impact on Indian Economy: The drop in crude oil price bodes well for India as it imports more than 80% of its oil requirements, with nearly 60% of them imported from the Middle East. Since oil imports form a large chunk of India's imports, it contributes to the country's trade deficit and a fall in prices will trim this deficit. Savings on oil imports could also arrest rising inflation and facilitate the next round of rate cuts by the Reserve Bank of India (RBI).
9. Industries to Benefit: On an industrial level, the price cut will have a beneficial impact on companies from synthetic fibre producers, tyre, paints, lubricants, plastic, and FMCG sectors that depend on crude oil as their primary raw material.
10. On the consumer level, there could be a fall in retail prices of gasoline and diesel over the next few weeks as oil companies cut retail prices to pass on the decline in crude oil prices.

Going ahead, market participants are expecting crude oil prices to remain low until OPEC+ resets oil production again.

Vijay Bhambwani, editor of Weekly Cash Alerts at Equitymaster, states that at this point in time, short selling natural gas & crude oil at significantly higher levels for the coming summer are high conviction trades. To know more about his view and positions, you can check out his recent article here: Energy Markets Get Muddy (requires subscription).

He's also shared his views on the ongoing "coronavirus" situation where he talks what's around the corner for crude oil, and how one should position oneself for potential gains. You can check this special podcast episode from Investor Hour here:

Well, then...these are some major highlights crude oil markets witnessed in the past and present and how they have been impacting crude oil prices.

With stock prices gyrating every day to coronavirus related developments, the weekend must come as a relief.

Here's a look at how deep the impact has been felt in the global financial markets:

1. Stock markets worldwide saw sharp losses on Thursday, with the benchmark indices on Wall Street and London saw their steepest daily falls since the Black Monday in 1987.
2. In the US, stocks witnessed a sharp sell-off on Thursday.
   • Thursday's dive follows the intense fall on Wall Street seen throughout the week. The S&P 500 triggered the first circuit breaker of the week on Monday after falling 7%. This fall came after the crash in crude oil prices.
   • The markets bounced back Tuesday, only to retreat on Wednesday after the World Health Organization (WHO) declared the coronavirus a pandemic.
   • At the closing bell, the Dow Jones Industrial Average finished down around 2,350 points (down 10%). The S&P 500 plunged 9.5%, while the Nasdaq Composite Index tumbled 9.4%.
   • Stocks were deep in the red the entire session, which was paused for 15 minutes early in the day. Automatic suspension was triggered after the S&P 500's losses hit 7%.
   • On Thursday, equities erased their losses briefly after the US Federal Reserve announced measures to inject an additional US$ 1.5 trillion in cash into financial markets. The announcement, which came after European markets had closed, sent shares higher, but they dropped back by the end of the day.
3. Coming to the European markets now, the main UK index dropped more than 10% yesterday in its worst day crash since 1987. Losses on the UK's FTSE 100 wiped some 160.4 billion pounds in wealth from the market.
4. Frankfurt had its worst day since 1989, the year the Berlin Wall fell, while Paris suffered its biggest one-day loss on record.
5. However, European stock markets rallied this morning. The signs of a US stimulus package helped soothe fears about an economic shock. At the time of writing, European indices were trading mixed. Shares in London were up 4.1%, while the Paris CAC gained 3.5%. However, the Frankfurt DAX crashed 9.3%.
6. Stocks in Asia also saw consistent sharp falls throughout the week. Japan's benchmark Nikkei 225 index closed 6.1% lower today.
7. Shanghai was down around 1% as the number of new cases in China shrunk and people slowly returned to work in the worst-hit areas.
8. In Asia, circuit breakers were also triggered in many exchanges including India, Japan, South Korea, Indonesia, Thailand, and the Philippines this week.
9. Indian share markets saw their biggest ever single day fall this week. The indices today hit their lower circuit limits within 15 minutes of the opening session. This was seen the first time in 12 years that trading in Indian markets had to be halted. The carnage didn't continue, however, as Indian indices recovered after major free-fall as trading resumed after 45-minute halt.
   
   From there on, it was an upward rally as markets went on to witness buying interest and saw their biggest intraday recovery ever.
10. On a year-to-date (YTD) basis, the worst fall has been witnessed by European markets. Here's a view on how the world markets have performed since January 2020.

US Markets			European Markets			Asian Markets
The Dow	Nasdaq	S&P 500	London	Paris	Germany	Hang Seng	Nikkei 225	Shanghai	Sensex
-27%	-21%	-24%	-31%	-33%	-32%	-16%	-25%	-6%	-17%

This worldwide crash has put March 2020 into the history books. Now, how markets perform in the coming days will be something to watch out.



This article (Worst Week for Global Stock Markets: Coronavirus Impact in 10 Points) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.


Full Article

Coronavirus fears have spooked the investors worldwide with BSE Sensex and NSE Nifty falling over 25% this month, in line with many other global indices.

After sharp corrections in three trading sessions on March 9, March 12, and March 16 by 5.1%, 8.1% and 7.9% respectively, the Sensex crashed by an overall 22% this month.

Let's dive a bit deeper and look at how the impact has been on individual sectors...

1. While all sectoral indices are in a sea of red since the outbreak of coronavirus, here's a look at the worst hit sectors since coronavirus outbreak:

   Sector	Since 1 March (%)	Since 1 Jan (%)
   BSE Metal	-30%	-45%
   BSE Bankex	-31%	-37%
   BSE Oil & Gas	-24%	-36%
   BSE Auto	-24%	-36%
   BSE Finance	-30%	-36%
   BSE Realty	-31%	-36%
   BSE Capital Goods	-25%	-33%
   BSE Power	-22%	-32%
   BSE Basic Material	-26%	-32%
   BSE Consumer Discretionary	-24%	-28%
   BSE IT	-25%	-27%
   BSE FMCG	-18%	-22%
   BSE Consumer Durables	-24%	-20%
   BSE Healthcare	-15%	-15%
   BSE Telecom	-18%	-14%

   *Note that prices are as on 19 March 2020
2. As you can see in the table above, metal sector has been hit the worst on year-to-date (YTD) basis. Note that, the sector has been witnessing selling pressure since last two years. The coronavirus situation has only exacerbated the situation.
3. Another sector that is largely impacted is banking and NBFCs. After being the most preferred in the Indian equity indices for over half a decade, things have changed for stocks in the financial sector. In India it is a double blow for financial sector in the form of YES Bank fallout and prolonged slowdown which increased the chances of credit quality deterioration.
4. To put things into context, foreign institutional investors (FIIs) were heavily positioned in the Indian financial space, and stocks in the sector witnessed maximum inflows during good times. Downward spiral for financial sector began since IL&FS crisis.
   
   Both, BSE Bankex and BSE Finance Index have plunged over 30% since the beginning of the month.
5. Shares of most hotel, leisure and airline firms have tumbled over 60% year-to-date, as the coronavirus outbreak across the world has forced people to cancel vacation plans. India also stand to lose foreign tourists due to the entry restrictions that have been put in place. And this has meant things getting worse for hotels and airlines sector.
6. Out of the 90 stocks listed on BSE from tourism, hospitality and film distribution segments, only 15 have given positive returns YTD.
7. Another sector that's facing the brunt is the automobile sector. Coronavirus couldn't have come at a worse time for India's auto sector that is battling a prolonged slump in demand. The virus outbreak has added to the pain, hitting production and lowering the demand even further as consumer spending is unusually low. Reportedly, the correction in the auto index is now close to what was seen during the 2008 global financial crisis. BSE Auto Index is down 36% on a YTD basis.
8. The fall in other indices like FMCG, consumer durables, capital goods and IT is relatively moderate as they do not have any direct impact of the pandemic. However, they too have been witnessing selling amid the sharp correction in Indian share markets.
9. Interestingly, Indian pharma has been doing much better than the overall index. Since the beginning of March 2020, the Sensex is down by 26% while the BSE Healthcare index is down only by 15% (till 19 March 2020).
   • One factor is the rupee weakness which has weakened well beyond the Rs 75/$ mark. A weak rupee helps exporters and pharma obviously benefits.
   • Another factor is the spread of the novel coronavirus has led global investors to rush for pharmaceutical stocks recently, on back of a rise in demand for generics and branded generics leading to shortages and over-pricing for drugs.
10. However, as the markets took a breather on Friday, the sectors that rallied the most were BSE FMCG, BSE IT and BSE Oil & Gas indices, gaining over 8% each.

What do you think will be the long-term impact for these sectors? Well, you can let us know by dropping your views in the comments section below.

While most sectors have been falling, our co-head of research, Tanushree Banerjee believes in long term, Indian auto ancillaries, textiles, chemical companies, Pharma R&D contract manufacturers, will all be the major beneficiaries of what she calls the Rebirth of India megatrend.

Also, in times like these, our special report, How to Trade the Coronavirus Crash, will help you get a grip on the current market situation...and figure out ways to profit from it.

This is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. I strongly recommend you read it now. Claim your FREE copy here...

Happy Investing!

With the ongoing panic in the global as well as Indian stock markets, there is no end to foreign investors dumping Indian shares.

This wasn't the case a while back. Foreign institutional investor (FII) were making a beeline for Indian equities few months back.

How has this trend been so far this year? What has changed in recent weeks and months? And what's behind the heavy movement of foreign funds in India?

Let us look at some key points to answer these questions...

1. September 2019: FII Money Returns to India Again

   If we track the trend of FII flows in financial year 2019-20, after the Union Budget in July 2019, foreign investors began selling. They pulled out a ton of money from Indian equities.

   Why? Well, they were disappointed with the budget as it did not address the key concerns the economy was facing.

   However, the month of September was a different ballgame altogether as foreign money once again made its way into Indian equities. Not surprisingly it was also the month in which the Government made amends for its failed budget.

   This is evident in the chart below:

   September 2019: Foreign Money Returns to India Again

2. 3rd Quarter 2019-20: FIIs Keep Pouring Money in Indian Equities

   There were two reasons behind the above FII rush to Indian equities:

   1. Clarification by the FM that the tax on the super-rich was not applicable on foreign investors
   2. Cut in corporate tax rates, among other efforts, that had the potential to make Indian manufacturing globally competitive

   Both the above points strengthened the case for investing in Indian for FIIs.

   And they kept on pouring money in the following months.

   Here's how much money came by FIIs to Indian stock markets in the third quarter of FY20:

   Month	Net Investment (Rs, m)
   Oct-19	85,956
   Nov-19	129,249
   Dec-19	6,941
   Total	222,146

   Data Source: Equitymaster

3. 2019: Best FII Flows in Six Years

   Overall, in calendar year 2019, FIIs pumped in a net of more than Rs 1,000 bn (billion) in Indian stocks. This made it their best such infusion in six years. The previous high was Rs 1,130 bn in 2013.

4. 2020: The Downtrend Starts

   The buying trend, however, didn't last long. FIIs rushed out of India amid concerns of slowing economic growth and high stock valuations.

   In the month of January, they pulled out Rs 126.8 bn from Indian stock markets.

5. Feb-Mar 2020: Coronavirus Triggers FII Sell off

   The selling intensified further in February and March 2020. The major trigger was the coronavirus led panic sell-off across global financial markets.

   In February and March, Nifty and Sensex corrected sharply. It was not just Indian share markets but even global indices like the Dow Jones, NASDAQ, FTSE, DAX, CAC and the Nikkei that witnessed the brunt.

   In the Indian context, the stock market correction was exacerbated by the weak foreign investor sentiments. The real surprise was not the FII selling. It was the ferocity and the intensity of the selling in such a short span of time.

   From February 14th, the FIIs have been sellers on all days except one.

6. March FII Outflows to date to Surpass the 2008 Crisis Level

   So far in March, FIIs have sold a net of Rs 478.9 bn of Indian shares.

   And this makes the outflows of the month set to surpass the 2008 crisis level.

   While India is still better placed relative to other emerging market peers, the wipe-out has been massive.

What Should Market Participants Do?

There is no denying that FIIs play an important role in the Indian stock markets.

Strong FII participation is good from the domestic investors' point of view in the sense that it leads to enhanced liquidity and greater depth in the market.

However, in the event of FIIs pulling out on a larger scale and a free fall in the markets, the correction in valuations of fundamentally solid companies would be just temporary. It may in fact offer some lucrative value buying opportunities.

How do you zero in on these opportunities?

Our special report, How to Trade the Coronavirus Crash, has the answer. Just claim your FREE copy here...

Stock markets around the world witnessed one of the most painful correction phases in the month of March 2020.

Indian stock markets too mirrored the trend.

Here are six charts showing how Indian financial markets performed in March 2020.

1. Record Wealth Destruction
   
   

   In the month of March 2020, the Sensex fell as much as 23%.

   It is not the month where the market has fallen the most. That honor goes to October 2008 where markets tanked 23.9%, beating the 23.1% the market lost last month by a whisker.

   However, March 2020 wins hands down in wealth destruction.

   Wealth destruction of Rs 4.4 lakh crores back in 2008 pales in comparison to the Rs 14.6 lakh crores worth of wealth destroyed on the Sensex in the last month alone.

   March 2020 the Second Worst Month in History

2. Huge Selling Pressure for Individual Stocks
   
   

   Except two, all the stocks in the BSE Sensex plunged in March 2020.

   The decline was mainly led by banking stocks and financial stocks.

   Stocks such as IndusInd Bank, Bajaj Finance, and Axis Bank fell as much as 40%-70%.

   Top BSE Gainers and Losers in March 2020

3. All Sectors in a Sea of Red
   
   

   Among sectors, all the BSE indices gave negative returns in March 2020.

   BSE Realty, BSE Bankex, BSE Finance, and BSE Auto Index fell more than 30%.

   It was a double whammy for banking and finance stocks that witnessed most of the brunt on the back of coronavirus outbreak and Yes bank crisis.

   Worst Hit Sectors in March 2020

4. Crude Oil Slumps Over 50%
   
   

   Crude oil crashed over 50% in March 2020.

   The fall was seen because of oversupply amid subdued demand.

   Oil prices crashed last month in what was the worst price dip since the 1991 Gulf War with Brent prices plunging to US$ 31 per barrel.

   Oil markets faced a double whammy from the coronavirus outbreak and a price war between Saudi Arabia and Russia after OPEC and other producers failed to agree on deeper cuts to support oil prices in early March.

   Shares of oil marketing companies such as Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), GAIL, ONGC, Indian Oil Corporation (IOC) and Indraprastha Gas were in focus in March amid record low crude oil prices.

   They witnessed buying interest and capped most losses led by the stock market crash.

   In his latest video, Ajit Dayal shares his views on the impact of the coronavirus crisis and the oil price war on the Indian economy and the stock market. You can view the same here.

   Crude Oil Continues Free Fall

5. Gold Prices Shine
   
   

   Base metals also remained under pressure as lockdown imposed in several parts of the world curbed demand, pushing stockpiles higher.

   However, gold prices rose 3% in March 2020 as demand for the safe haven asset rose with market participants bracing prolonged uncertainty in the wake of the novel coronavirus outbreak.

   To know more about gold, you can check one of Vijay Bhambwani's recent articles here: Is the Price of Gold About to Go Higher?

   Gold Witnesses Buying

6. Rupee Hits Record Low in March 2020
   
   

   Massive sell-off in equities and bonds led to a huge fall in rupee against the dollar in the month of March.

   The rupee hit a record low of 76.32 against dollar earlier this week.

   Most of the selling pressure for rupee was seen on the back of slump in equities and currencies globally. Investors were concerned that support measures from governments and central banks may be insufficient to halt the economic damage caused by the coronavirus pandemic.

   Rupee Continues Downtrend

So, that was a round-up on how Indian financial markets performed in the month of March 2020.

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Our special report, How to Trade the Coronavirus Crash, will help you get a grip on the current market situation...and figure out ways to profit from it.

This is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. I strongly recommend you read it now. Claim your FREE copy here...

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Happy Investing!

Most sectors in the Indian share markets have been drowning in a sea of red due to the crash led by coronavirus outbreak. The biggest blow, however, has been felt by the banking sector.

The sector was already reeling under pressure due multiple factors for quite some time. And things started getting worse since the start of 2020.

Here's a timeline showing some major events that happened in the Indian banking sector and led to the slowdown we are witnessing in the past few months...

1. Mounting Pile of Bad Loans: Indian banks have for years worked to beat down mounting piles of bad loans of the sort that led to the Yes Bank fallout. The ratio of gross non-performing assets (NPAs) at Indian banks rose to 11% in 2018 from about 2% in 2008, before starting to ease off.
2. IL&FS Crisis Kicks Off the Downward Spiral: Foreign institutional investors (FIIs) were heavily positioned in the Indian banking and financial space, and stocks in the sector witnessed maximum inflows during good times. However, they started noticing cracks with consistent negative performance in the banking and financial sector and started moving out of them. The downward spiral for these sectors began since IL&FS crisis camec out into the open.
3. Credit Quality Deteriorates: After being the most preferred sector for over half a decade, things started changing for stocks in the banking sector since 2020. This came as the sector witnessed a double blow in the form of YES Bank fallout and prolonged economic slowdown. And all this only led to credit quality deterioration for banks.
4. YES Bank Crash: The Yes Bank crisis and the sight of Rana Kapoor being taken to court in early March came in as one of the worst months for India's banking sector.
5. Bailout for Yes Bank: To save Yes Bank, a range of Indian lenders led by the State Bank of India (SBI), infused funds in return for an equity stake. The episode came as a jolt to investors, who worried it could exacerbate vulnerabilities in the financial system.
6. Panic Selling Amid SC Order: Then came another blow. Before the dust settled on Yes Bank, the Supreme Court ruled that telecom operators must pay dues worth billions owed to the government. This caused panic-selling in bank stocks due to their heavy exposure to the telecoms sector.
7. Coronavirus Threat: The challenges now facing India's banking sector have reached another order of magnitude due to the coronavirus threat to the economy. Banking stocks have been among the hardest hit.
8. Sharp Fall for BSE Bankex: The BSE Bankex has fallen about 46% so far this year, outpacing the 32% fall in the BSE Sensex. Shares of Axis Bank and IndusInd Bank have lost the most during this period.
9. Relief Measures: Owing to all these shocks, banks have sought various relief measures. On 27 March 2020, the Reserve Bank of India (RBI) came out all guns blazing to arrest a potential slowdown caused by coronavirus (Covid-19). It did not just lower the cash reserve ratio (CRR) by 1% to 3% but also cut the repo rate by 0.75%. Also, there is a three-month moratorium on payment of loan installments.
10. PSB Merger: Then came the major announcement effective from 1 April 2020. First announced in August 2019, the government's ambitious plan to merge 10 state-owned banks into four came into effect from 1 April 2020. The move, aimed at strengthening the banking system and creating more large institutions with size and scale, has seen...
    • Oriental Bank of Commerce and United Bank of India merged into Punjab National Bank,
    • Andhra Bank and Corporation Bank merged into Union Bank of India,
    • Allahabad Bank merged with Indian Bank, and
    • Syndicate Bank amalgamated into Canara Bank

So, that were some top pointers on what the Indian banking sector has been going through amid the coronavirus led stock market crash.

I reached out to Tanushree Banerjee, who is closely tracking the banking sector in the current scenario. Here's her view on the sector...

• The Covid-19 lockdown has hit cash flows of both individual borrowers and corporates. This, in turn, will impact their loan repayment capability.
  
  The RBI's repo rate cut came as a temporary lifeline for Indian companies with debt on books. It will offer both companies and retail borrowers some breather. If banks use this phase judiciously, it may save the NPA ratios from worsening significantly.
  
  However, only the banks that have adequate capital and provisioning cushion may be able to tide over the economic crisis. Eventually, another round of consolidation in private sector banks, like the one after 2002, cannot be ruled out.

Tanushree's latest StockSelect recommendation is one such midcap bank.

You can read the entire report here (requires subscription).

Also, speaking of ongoing stock market crash, our special report, How to Trade the Coronavirus Crash, is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. You can claim your FREE copy here...

And rest assured, Equitymaster is with you all the way on this journey. To that end, we have decided to offer you two of our premium learning courses free!

From the comfort of your home, you can learn the basics of fundamental investing with Equitymaster Secrets and the ins and outs of making money using derivatives with Derivantage. Get started right away.

Happy Investing!

As the Coronavirus pandemic continues to haunt the global financial markets, the rupee has been hit badly.

The domestic currency has been continuing its downtrend and hit its record low level against the dollar last week.

Here's a timeline showing how the Indian rupee has performed lately and the factors behind it...

1. Rupee in 2018:
   
   

   The Indian rupee was the worst performer in Asia in 2018. As can be seen from the chart below, it fell by around 12% against the US dollar. This was seen due to a strong dollar and high oil prices in 2018. Similarly, the spill-over from the emerging-market turmoil in Argentina and Turkey weighed on the rupee in 2018.

   Indian Rupee: The Worst Performing Currency in Asia in 2018

2. Rupee in 2019:
   
   

   The rupee traded on a volatile note last calendar year. However, for most of 2019, it traded on a negative note against the US dollar.

   While it started the year at 69.71 against the US dollar and also witnessed some uptrend from April 2019 to August 2019, it went on to depreciate during the end of the year. On December 2019, it ended at 71.31 against the US dollar.

   Rupee Trades was Volatile in 2019

3. Rupee in 2020 So Far:
   
   

   On a year-to-date (YTD) basis, the rupee has depreciated sharply against the US dollar. While it started the calendar year 2020 at 71.28 against the US dollar, it is currently trading at 76.27 against the US dollar. This translates to a depreciation of around 7% for the domestic currency.

   YTD Performance of the USD/INR

4. Downtrend in March 2020:
   
   

   The massive sell-off in equities and bonds led to a huge fall in rupee against the dollar in the month of March 2020. Most of the selling pressure was due to the slump in equities and currencies globally.

   Investors were concerned that support measures from governments and central banks may be insufficient to halt the economic damage caused by the coronavirus pandemic.

   Here's how the currency performed in the month of March:

   Huge Depreciation of the Rupee in March 2020

5. Rupee Hits Record Low in April 2020:
   
   

   The rupee fell to a new record low of 76.55 against the US dollar on 9th April, 2020.

   This was seen as a rise in coronavirus cases fanned fears of the government extending the lockdown to contain the pandemic.

6. Factors Behind the Rupee's Fall:
   
   

   Some major factors behind the recent fall in rupee are...

   • Weak sentiments in the currency markets due to global risk aversion
   • Sharp fall in the Indian stock markets
   • Sharp fall in global financial markets due to coronavirus fears
   • Strengthening dollar
   • Thin liquidity due to reduced participation

These are some top pointers on how the Indian rupee has been performing in recent years and amid the coronavirus led stock market crash.

I reached out to Vijay Bhambwani, editor of Weekly Cash Alerts, who is closely tracking the Indian rupee in the current scenario. Here's what he has to say...

The onset of Corona virus has not been kind to the INR.

The Rupee futures (USDINR ) opened in March at 72.36 and have closed at 76.61 on April 09 2020. That is a decline of 5.87% in 6 short weeks.

The implications of the same will be widespread. India is a net importing Country. Everything that we import will now be more expensive. Approximately two thirds of all our imports are fossil fuels. Fuels are what we call multiplier effect commodities. If fuel prices rise at the petrol pumps, everything from fruits, vegetables, grains to dairy and poultry products get expensive.

That impact will be felt at a later date. I expect the trickle down effect to start appearing in prices after the April-June quarter is over.

I have already factored in this aspect in my statistical data model and plan to identify such events to generate profitable trading opportunities for my WCA plan subscribers.

Vijay has also talked about the Indian currency in a special edition podcast from Investor Hour. He shares what's around the corner for Indian rupee and how to should position oneself for potential gains.

You can listen the entire episode here...

Speaking of ongoing stock market crash, our special report, How to Trade the Coronavirus Crash, is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. You can claim your FREE copy here...

And rest assured, Equitymaster is with you all the way on this journey. To that end, we have decided to offer you two of our premium learning courses free!

From the comfort of your home, you can learn the basics of fundamental investing with Equitymaster Secrets and the ins and outs of making money using derivatives with Derivantage. Get started right away.

Happy Investing!

The UK Conservative Party has agreed to consider reducing the rate of Air Passenger Duty for airports in Northern Ireland after agreeing a coalition government with the Northern Ireland's Democratic Unionist Party party.

The Hong Kong Financial Services Development Council has released a report calling for the Government to expand its tax treaty network, in particular with countries that have growing aviation industries.

The European Commission has concluded that an exemption for transfer and transit passengers from the Irish air travel tax was in line with EU state aid rules.

Irish Prime Minister Leo Varadkar has suggested that there could be an EU-UK customs union after Brexit.

The European Commission and the Swiss Federal Council have each approved proposals to link their emissions trading systems, meaning formal signature of a new agreement could take place by the end of the year.

German Economy Minister Brigitte Zypries has said that Germany's air passenger tax is damaging the country's aviation industry and should be scrapped.

The WTO's Dispute Settlement Body has formally endorsed the Appellate Body's decision to reverse a previous panel ruling that a tax break provided by Washington State to Boeing is a prohibited subsidy.

A number of proposed tax changes intended to boost Dutch competitiveness and combat tax avoidance have been included in the official agreement between the four parties forming the next Government of the Netherlands.

Members of the European Parliament have preliminarily agreed to continue with the aviation industry's current treatment under the EU's emissions trading scheme to allow for the development of a new industry-specific carbon tax arrangement.

A new study by PwC has concluded that abolishing Germany's flight ticket tax would provide a substantial boost to the German economy.

The European Council on November 10 authorized the signing of an agreement with Switzerland to link their emissions trading systems.

Environmental tax revenue as a percentage of Germany's overall tax take has fallen to its lowest level in more than 20 years, according to the country's statistical agency.

Indonesia is to hike its air departure tax for Soekarno-Hatta Airport, by far the country's busiest, from March 1.

An environmental tax on air travel was introduced in Sweden on April 1, 2018.

Barbados's new government has issued a new Budget that would raise corporate and income tax rates, repeal the National Social Responsibility Levy and road tax and make other value-added tax and levy changes.

The Dutch Government has begun a public consultation exercise on plans to introduce a new tax on air travel by 2021.

The Swiss Federal Council is consulting on proposed changes to the CO2 Ordinance, which would link the Swiss and EU emissions trading systems.

On May 28, 2019, Dutch State Secretary for Finance Menno Snel issued an update on the Government's 2019 fiscal agenda, which includes an outline of tax legislative proposals that the Government intends to submit to parliament in the remainder of the year.

Indonesia's Ministry of Finance is preparing a legislative response to ensure the collection of VAT on electronically supplied services to Indonesian consumers.

The newly elected President of the European Commission, Ursula von der Leyen, who was formerly Germany's defense minister, has proposed the introduction of a new Carbon Border Tax, which would be included in a new "Green Deal for Europe" she has promised to deliver within her first 100 days in office.

Switzerland and the EU are to link their emissions trading systems from next year, after the Swiss Federal Council approved revisions to the country's Ordinance on the Reduction of CO2 Emissions.

The Austrian Ministry of Finance has announced its decision to proceed with personal income tax cuts.

On March 23, 2020, the Turkish Government published a resolution in the official gazette to temporarily reduce the rate of VAT on air passenger transport to one percent.

Indian share markets ended their trading session lower yesterday.

Benchmark indices edged lower tracking weak global cues as investors fretted over weak economic data and rising COVID-19 cases.

Barring energy stocks, all sectoral indices ended on a negative note with stocks in the power sector, telecom sector and consumer durables sector witnessing most of the selling pressure.

At the closing bell yesterday, the�BSE Sensex stood lower by 242 points and the�NSE Nifty�closed down by 72 points.

The SGX Nifty�was trading at 9,200, down by 53 points, at the time of writing.

The�BSE Mid Cap�index and the�BSE Small Cap�index ended their day down by 0.5% and 0.1%, respectively.

Speaking of the current stock market scenario, after a sharp rally in the past few weeks, the markets have turned volatile again.

You would be interested in knowing when the market will likely bottom out.

Vijay Bhambwani, editor of Weekly Cash Alerts, has the answer and he has recorded a video about it.

You can check the same here -�This is When the Stock Market Will Bottom Out

Also, our special report, How to Trade the Coronavirus Crash, is the most comprehensive report on how to trade the coronavirus, both from a short-term and long-term perspective. You can�claim your FREE copy here...

Top Stocks in Focus Today

From the pharma sector, Dr Reddy's Laboratories share price will be in focus as the company announced that the its NDA (new drug application) Elyxyb ((celecoxib oral solution 25 mg/mL) has been approved by the US Food and Drug Administration.

The drug is indicated for the acute treatment of migraine with or without aura in adults.

From the IT sector, HCL Technologies share price will also be in focus as the company reported a 22.8% year-on-year (YoY) rise in consolidated net profit at Rs 31.5 billion compared with Rs 25.7 billion in the same quarter last year.

Revenue for the quarter rose 16.3% YoY to Rs 185.9 billion from Rs 159.9 billion reported in the year-ago quarter. In dollar terms, revenue rose 11.7% YoY to US$ 2,543.40 million from US$ 2,277.80 million. On a sequential basis, dollar sales were flat. Sales growth in constant currency terms rose 13.5% YoY to US$ 2,584.60 million.

To know more about the company, you can read HCL Technologies' Q4FY20 result analysis on our website.

Market participants will also be tracking RBL Bank share price, Cyient share price and Gillette share price as these companies announced their March quarter results yesterday.

You can read our recently released Q4FY20 results of other companies here: Ambuja Cement,�IndusInd Bank,�Axis Bank,�Tech Mahindra,�HUL,�Reliance Industries,�Marico, Kansai Nerolac, NIIT Technologies, Persistent Systems.

GSK Sells Stake in HUL via Block Deal

From the FMCG sector, Hindustan Unilever (HUL) share price will be in focus as the UK-based Glaxo-SmithKline (GSK) offloaded its stake in HUL via block deals yesterday.

According to the term sheet, over 133 million shares are being offered in the range of Rs 1,850-1,950 to investors through a special block window. The deal will be valued roughly between Rs 246 billion to Rs 259 billion.

GSK and�Horlicks�are selling up to US$ 3.4 billion worth of HUL shares through what could be India's biggest secondary market block trades.

The British drug maker is looking to monetise about 5.7% of�HUL stock it had got after last year's merger of GSK Consumer Healthcare and HUL.

As per the scheme of amalgamation amongst GSK Consumer Healthcare and HUL, GlaxoSmithKline Pte had received 54.08 million shares of HUL, meanwhile Horlicks received 79.69 million shares.

Accordingly, parent company Unilever Plc and group companies' stake in HUL reduced to 61.9%, from 67.2% earlier after the issue of new shares.

Yes Bank Q4FY20 Results

Yes Bank reported better-than-expected March quarter (Q4FY20) results.

Yes Bank�posted a net profit of Rs 26.3 billion on the back of one-time gain attributed to an exceptional item of Rs 63 billion.

The bank has written-down additional tier-1 bonds as part of its planned reconstruction scheme, leading to a one-time gain of Rs 63 billion.

In the absence of the exceptional gain, the bank would have reported a net loss of Rs 36.7 billion.

The bank had reported a net loss of Rs 15.1 billion a year ago, while the same was Rs 185.6 billion in Q3FY20.

The bank's net interest income (NII) for the March quarter came in at Rs 12.7 billion, up 19.6% sequentially.

Net interest margin (NIM) for Q4FY20 came in at 1.9%, compared to 3.1% a year ago.

On the asset quality front, gross non-performing assets (NPA) fell 19% QoQ to Rs 328.8 billion, mostly on account of write-offs.

The bank's deposits plunged to Rs 1.05 lakh crore, down 54% YoY compared with Rs 2.27 lakh crore.

Meanwhile, Advances declined 29% YoY to Rs 1.7 lakh crore from Rs 2.4 lakh crore in the year-ago quarter.

For the financial year 2019-20 (FY20), the private lender posted a loss of Rs 164.2 billion, on a standalone basis, compared to net profit of Rs 17.2 billion in the previous year.

To know more, you can read Yes Bank's latest result analysis on our website.

Speaking of the banking sector, the low access to credit for micro small and medium enterprises (MSMEs) tells us there is a huge opportunity for lenders.

This is evident from the chart below:

India's Huge Lending Opportunity

Of the 60 million MSMEs in India, only 11% had access to credit from organised lenders. Most of them are self-financed or get credit from unorganised sources.

Here's what Tanushree Banerjee wrote about this in one of the editions of�The 5 Minute WrapUp...

• Self-financing limits the growth of these MSMEs. On the other hand, high interest rates from unorganised sources makes it difficult for them to earn profits.
  
  The Modi government is looking at various ways�to correct this problem. Mudra loans, online loans facilities are being made available to MSMEs.
  
  Slowly but surely, lenders are sensing the huge opportunity that lies ahead for this sector.
  
  Banks and other financial firms with prudent lending practices and strong distribution networks will benefit from this�megatrend.

Tanushree is counting on 7 top stocks from the Indian stock market that will benefit from this megatrend.

As per her, now is the right time to buy these stocks to profit from the�Rebirth of India.�You can read about them here.

And to know what's moving the Indian stock markets today, check out the most recent�share market updates here.

The BSE Sensex has surged 640 points to 32,083 (up 2.0%).

Among the top gainers in the BSE Sensex today are HUL (up 4.3%), BAJAJ FINANCE (up 3.3%) and TCS (up 3.0%). Other gainers include RELIANCE IND. (up 2.8%) and MARUTI SUZUKI (up 2.7%).

BAJAJ AUTO (down 2.7%) and NESTLE (down 1.0%) are among the top losers today.

In the meantime, the NSE Nifty Index is up 3,299 points to 9,377 (up 1.9%).

The top gainers in the NSE Nifty Index include include HINDALCO (up 4.5%), HUL (up 4.2%) and ZEE ENTERTAINMENT (up 3.7%). Other gainers include GAIL (up 3.6%) and MARUTI SUZUKI (up 2.6%).

Over the last one year, the BSE Sensex has moved up from Rs 38,277 to Rs 32,083, registering a gain of Rs -6,194 (up -16.2%)..

The top gainers among the BSE Sensex stocks during this same period were BHARTI AIRTEL (up 66.4%), NESTLE (up 63.6%) and HUL (up 22.6%).

Which stocks contributed the most to the BSE Sensex?

The biggest contributors to the gain in the Sensex today were HUL (86 points) and BAJAJ FINANCE (68 points).

Among the other contributors were TCS (57 points) and RELIANCE IND. (43 points).

What about the other broader BSE Indices?

The BSE 100 index has gained -2,133 points today and is now trading at 9,475 (down 18.4%). The top gainer here is AVENUE SUPERMARTS LTD (up 76.0%).

The BSE 500 on the other hand gained 2,818 points (up 1.7%), and is currently at 12,141.

IRB INFRA. share price has zoomed 7% and is presently trading at Rs 69.

Meanwhile, the BSE REALTY Index is at 1,333 (up 0.7%).

Among the top Gainers in the BSE REALTY Index today is IRB INFRA. (up 7.3%).

GODREJ PROPERTIES (down 0.4%) and SOBHA LIMITED (down 1.8%) are among the top losers today.

Over the last one year, IRB INFRA. has moved down from Rs 118 to Rs 69, registering a loss of Rs 48 (down 41.1%).

On the other hand, the BSE REALTY has moved down from 1,983 to 1,333, loss of 650 points (down 32.8%) during the last 12 months.

The top gainers among the BSE REALTY Index stocks during this same period were [param_historic_top3].

What About the Benchmark Indices?

The BSE Sensex is at 32,083 (up 2.0%).

The top gainers among the BSE Sensex stocks today are HUL (up 4.3%), BAJAJ FINANCE (up 3.3%) and TCS (up 3.0%). Other gainers include RELIANCE IND. (up 2.8%) and MARUTI SUZUKI (up 2.7%). The most traded stocks in the BSE Sensex are HDFC and BAJAJ FINANCE.

In the meantime, NSE Nifty is at 9,377 (up 1.9%). The top gainers in the NSE Nifty include HINDALCO (up 4.5%), HUL (up 4.2%) and ZEE ENTERTAINMENT (up 3.7%). Other gainers include GAIL (up 3.6%) and BAJAJ FINANCE (up 3.4%) are among the top gainers in NSE Nifty.

Over the last 12 months, the BSE Sensex has moved down from 38,277 to 32,083, registering a loss of 6,194 points (down 16.18%).

IRB INFRA. Financial Update...

IRB INFRA. net profit down at Rs 2 billion for the quarter ended December 2019, compared to a loss of Rs 2 billion a year ago. Net Sales declined 2.6% to Rs 17.4 billion during the period as against Rs 17.9 billion in October-December 2018.

For the year ended March 2019, IRB INFRA. reported 7.2% increase in net profit to Rs 8.5 billion compared to net profit of Rs 7.9 billion during FY18.

Revenue of the company grew 17.8% to Rs 67 billion during FY19.

The current Price to earnings ratio of IRB INFRA., based on rolling 12 month earnings, stands at 3.1x.

This article (IRB INFRA. Surges by 7%; BSE REALTY Index Up 0.7%) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.

CYIENT share price has plunged 6% and is presently trading at Rs 219.

Meanwhile, the BSE IT Index is at 13,667 (up 1.2%).

Among the top losers in the BSE IT Index today is CYIENT (down 5.6%).

FIRSTSOURCE SOL. (up 2.6%) and ORACLE FINANCIAL (up 2.5%) are among the top gainers today.

Over the last one year, CYIENT has moved down from Rs 568 to Rs 219, registering a loss of Rs 349 (down 61.4%)..

The BSE IT has moved down from 15,682 to 13,667, loss of 2,015 points (down 12.8%) during the last 12 months.

The top gainers among the BSE IT Index stocks during this same period were INFIBEAM AVENUES (up 14.6%) and NIIT TECHNOLOGIES (up 10.1%).

What About the Benchmark Indices?

The BSE Sensex is at 32,089 (up 1.8%). The top gainers among the BSE Sensex stocks today are HUL (up 3.0%). The most traded stocks in the BSE Sensex are RELIANCE IND. and SBI.

In the meantime, NSE Nifty is at 9,383 (up 1.5%). DR. REDDYS LAB (up 4.1%) is among the top gainers in NSE Nifty.

Over the last 12 months, the BSE Sensex has moved down from 38,277 to 32,089, registering a loss of 6,188 points (down 16.35%).

CYIENT Financial Update...

CYIENT net profit stood at Rs 1 billion for the quarter ended December 2019, compared to a profit of Rs 924 million a year ago. Net Sales declined 6.9% to Rs 11.1 billion during the period as against Rs 11.9 billion in October-December 2018.

For the year ended March 2019, CYIENT reported 13.3% increase in net profit to Rs 4.8 billion compared to net profit of Rs 4.2 billion during FY18.

Revenue of the company grew 17.9% to Rs 46 billion during FY19.

The current Price to earnings ratio of CYIENT, based on rolling 12 month earnings, stands at 5.1x.

This article (CYIENT Plunges by 6%; BSE IT Index Up 1.2%) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.

BANK OF MAHARASHTRA share price has zoomed 9% and is presently trading at Rs 10.

Meanwhile, the BSE BANKEX Index is at 22,787 (up 2.1%).

Among the top Gainers in the BSE BANKEX Index today is BANK OF MAHARASHTRA (up 8.6%).

Over the last one year, BANK OF MAHARASHTRA has moved down from Rs 15 to Rs 10, registering a loss of Rs 5 (down 35.9%).

On the other hand, the BSE BANKEX has moved down from 32,704 to 22,787, loss of 9,917 points (down 30.4%) during the last 12 months.

The top gainers among the BSE BANKEX Index stocks during this same period were [param_historic_top3].

What About the Benchmark Indices?

The BSE Sensex is at 32,089 (up 1.8%).

The top gainers among the BSE Sensex stocks today are HUL (up 3.0%), INDUSIND BANK (up 2.9%) and BAJAJ FINANCE (up 2.8%). Other gainers include AXIS BANK (up 2.7%) and RELIANCE IND. (up 2.5%). The most traded stocks in the BSE Sensex are RELIANCE IND. and SBI.

In the meantime, NSE Nifty is at 9,383 (up 1.5%). The top gainers in the NSE Nifty include DR. REDDYS LAB (up 4.1%), INDIABULLS HOU. FIN. (up 3.8%) and HUL (up 3.2%). Other gainers include HINDALCO (up 2.5%) and ZEE ENTERTAINMENT (up 2.3%) are among the top gainers in NSE Nifty.

Over the last 12 months, the BSE Sensex has moved down from 38,277 to 32,089, registering a loss of 6,188 points (down 16.35%).

BANK OF MAHARASHTRA Financial Update...

BANK OF MAHARASHTRA net profit declined 103.6% YoY to Rs 1 billion for the quarter ended December 2019, compared to a loss of Rs 38 billion a year ago. Operating income rose 14.0% to Rs 30.2 billion during the period as against Rs 26.5 billion in October-December 2018.

For the year ended March 2019, BANK OF MAHARASHTRA reported 328.3% increase in net profit to Rs 47.6 billion compared to net profit of Rs 11.1 billion during FY18.

Revenue of the company grew 2.2% to Rs 108 billion during FY19.

The current Price to earnings ratio of BANK OF MAHARASHTRA, based on rolling 12 month earnings, stands at 6.7x.

This article (BANK OF MAHARASHTRA Surges by 9%; BSE BANKEX Index Up 2.1%) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.