Market ends with modest gains; coronavirus fears continue to weigh on sentiment

Frontline equity indices, Sensex and Nifty, ended with small gains on March 5 as investors remained cautious amid reports of rising coronavirus cases in India.

The total number of confirmed cases of coronavirus in India rose to 30 today after a Ghaziabad resident was found positive.

The novel coronavirus outbreak, or COVID-19, has spread rapidly across more than 80 countries. Globally, there have been over 95,400 cases of COVID-19. At least 3,200 people have died so far — the majority of them in China.

Sensex traded in the green zone for the most part of the day; at one point in the day, the 30-share index was 478 points up.

However, it failed to hold altitude as worries of widening economic fallout of coronavirus outbreak persisted.

Signs of improvement in the global cues offered little relief and the equity barometer Sensex eventually ended with a modest gain of 61 points, or 0.16 percent, at 38,470.61, while Nifty settled 18 points, or 0.16 percent, up at 11,269.

BSE Midcap and Smallcap indices outperformed benchmark Sensex, closing 0.31 percent and 0.29 percent higher, respectively.

Vinod Nair, Head of Research at Geojit Financial Services said that the funds allocated by IMF and easing monetary measures are marginally supporting global markets but India is underperforming due to coronavirus cases.

He said foreign investors are selling with a notion that the effect of the epidemic will be more on emerging markets. In his views, volatility is expected to persist and issues related to telecom and weak asset quality of banks could hurt the market in the short to medium-term.

Top Nifty gainers: Yes Bank, Eicher Motors, Kotak Mahindra Bank

Top Nifty losers: Zee Entertainment Enterprises, Hindalco Industries, Bharti Infratel

Stocks & Sectors:

The sectoral front portrayed a mixed picture on March 5. With a loss of 1.67 percent, the BSE Energy emerged as the top loser among the sectoral indices. This was followed by BSE Realty, Metal and Oil & Gas indices that lost 1.10 percent, 0.89 percent and 0.68 percent, respectively.

On the other hand, the BSE Telecom index rose 1.21 percent, followed by FMCG and Consumer Durables indices that rose 0.93 percent and 0.78 percent, respectively.

As many as 290 stocks, including JSW Energy, Bajaj Consumer Care, Sadbhav Engineering, Srei Infrastructure Finance and Zensar Technologies, hit 52-week lows on BSE.

Volume spike of 100-200 percent was seen in stocks like Ramco Cements, Cholamandalam Investment and Finance Company, HDFC Life Insurance Company and State Bank of India.

Long Buildup was seen in stocks like Bandhan Bank, Cadila, Jubilant Foodworks and Pidilite Industries.

Short Buildup was seen in stocks like Zee Entertainment, Mindtree, Hindalco and Cholamandalam Investment and Finance.

Stocks in the News

YES Bank: The share price of YES Bank surged 26 percent after reports that the government had approved the State Bank of India’s (SBI) plan to lead a consortium and purchase stake in Yes Bank.

Jet Airways: Jet Airways share price rose 5 percent even after Enforcement Directorate (ED) registered a case against the airlines’ former Chairman. The Enforcement Directorate (ED) has registered a case against Naresh Goyal under the Prevention of Money Laundering Act (PMLA).

Granules India: Granules India share price gained over 3 percent after the company received USFDA nod for Potassium Chloride Extended-release tablets.

Max Financial: Max Financial Services share price added more than 2 percent after the board of the company approved share swap deal with Mitsui Sumitomo.

3M India: Shares of 3M India gained over 2 percent after reports that the sale of face masks, sanitizer, and gloves have soared in the country amid the coronavirus fears.

Technical View:

Nifty formed a bearish candle on the daily charts.

The index attempted to breach the resistance zone of 11,350, but could not sustain above it and closed with small gains.

As per Manav Chopra, Head of Research – Equity at Indiabulls Securities, once Nifty decisively closes above 11,350, the process of recovery may materialise and the index, in such an event, is likely to test 11,550 zone on the upside.

He said fresh positional shorts should be avoided as the index is quite oversold and near the important support zone.

In his views, Nifty has support in the zone of 11,200-11,000 and has resistance in the zone of 11,350-11,550.

Three levels to watch on Friday would be 11,245, 11,350, 11,388.

Max Call OI: 11,800, 11,500

Max Put OI: 11,000, 11,300

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