On the global front, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower. Meanwhile, the Indian rupee depreciated 28 paise to 75.18 against the US dollar in morning trade. Brent crude futures, the global oil benchmark, fell 4.44 per cent to USD 26.71 per barrel.
Finance Minister’s package did not address to the needs of the corporate sector, analysts said, adding that this would, perhaps, be followed by monetary stimulus by RBI along with forbearance on loan repayments.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth Rs 1,893.36 crore on Wednesday, according to provisional exchange data. Brent crude futures, the global oil benchmark, fell 0.51 per cent to USD 27.25 per barrel.
Equity benchmark Sensex rallied over 1,600 points in afternoon session on Wednesday led by gains in index heavyweights Reliance Industries, HDFC twins, ICICI Bank and Kotak Bank as government took drastic measures to combat Covid-19 outbreak.
European as well as Wall Street indices reversed from losses as investors banked on hopes of economic stimulus from policymakers. Sensex traded 500 points higher to trade at 27,299, and Nifty gained 130 points higher to 7,970-mark.
Analysts say volatility cannot be ruled out for the time being as investors assess the policy decisions announced by authorities around the globe to fight the rapid spread of the coronavirus (COVID-19) pandemic.
Although the markets saw an across-the-board selling, bank and auto stocks were the worst-hit. Axis Bank and ICICI Bank both plunged over 10 per cent each while Maruti Suzuki India was down 9.7 per cent.
At 9.24 a.m., Sensex was at 26,878.50, lower by 1,991.01 points or 6.90 per cent from the previous close of 28,869.51.It had opened at 27,773.36 and has so far touched a low of 26,875.10
Before market hours this morning, S&P Global Ratings lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.
All sectoral indices were trading higher in Wednesday’s trade. Nifty IT, Nifty Metal and Nifty Pharma, were up over 2 per cent each. Nifty Bank index was too trading higher led by gains in Yes Bank, RBL Bank and IndusInd Bank.
On the corporate front, Yes Bank will be in focus after reporting a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dud assets on the books, and an erosion of capital buffers to the brink.
Top gainers in the Sensex pack included Hero MotoCorp, Reliance Industries, ICICI Bank and L&T, while Tata Steel, IndusInd Bank, ONGC, SBI and Infosys ended significantly lower.
The rupee on Monday slipped past the 74-level against the US dollar to settle at 74.14 (provisional), down 27 paise tracking heavy selling in domestic equity market amid rising concerns over coronavirus-led economic slowdown.
At 9.36 a.m., the BSE Sensex trimmed some losses and was trading at 37,376.66, lower by 1,093.95 points or 2.84 per cent from the previous close of 38,470.61.
The IMF on Wednesday said will make available about USD 50 billion through its rapid-disbursing emergency financing facilities for low income and emerging market countries that could potentially seek support on account of coronavirus.
At 1.43 p.m., the BSE Sensex was trading at 37,879, lower by 744.70 points or 1.93 per cent from the previous close of 38,623.70. It had opened at 38,715.72 and has so far touched an intra-day high of 38,791.70 and a low of 37,846.10.
In the previous session, the 30-share BSE barometer surged 479.68 points or 1.26 per cent to end at 38,623.70, and the broader Nifty jumped 170.55 points or 1.53 per cent to close at 11,303.30.
In the previous session, the 30-share BSE barometer closed 153.27 points or 0.40 per cent lower at 38,144.02, and the broader Nifty closed lower by 69 points or 0.62 per cent at 11,132.75.
Top gainers in the Sensex pack included ICICI Bank, HCL Tech, Reliance Industries, TCS, ONGC, Titan and Infosys, rising up to 3 per cent. On the other hand, Kotak Bank, M&M and Tech Mahindra were in the red.
According to analysts, till last week the market was of the view that coronavirus was going to have a minimum impact on the global economy as the situation in China was being contained. But the increase in the number of new cases is changing the view and investors are worried about an intense slowdown.
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