Global stock markets crash! What should we do now?
Good Morning Everyone, Major panic was seen yesterday, where worried investors sold huge in the market also led by the FIIs, bringing the Nifty to its biggest fall in a day in the last 10 months. But the most important thing to note here is that the stock market is not for the faint-hearted, but for the strong-hearted person with a stable mind and patience.
All the weak-hearted investors have been expelled yesterday by the market itself.
What should an intelligent investor do now?
The only answer is to buy! Yes, every stock is available at a great price, so we need to invest in those shares and use this opportunity to build a great portfolio in a staged manner.
No one knows the bottom of the market, but investing in stages during this situation can give us great returns.
It was major panic selling seen in the last hour of market which led to a low of 16200.
On a daily chart, the Nifty has formed a strong bearish candle.
Global Markets:
US stocks ended sharply higher on Thursday, led by a 3 percent gain in the Nasdaq, in a dramatic market reversal as US President Joe Biden unveiled harsh new sanctions against Russia after Moscow began an all-out invasion of Ukraine. The S&P 500 rose more than 1 percent, ending a four-day slide amid worries over the escalating crisis. The Dow also ended in positive territory.
The Dow Jones Industrial Average rose 92.07 points, or 0.28 percent, to 33,223.83, the S&P 500 gained 63.2 points, or 1.50 percent, to 4,288.7 and the Nasdaq Composite added 436.10 points, or 3.34 percent, to 13,473.59.
Global bond yields drop as Russia-Ukraine conflict puts the US Fed in a tight spot. Bond yields across geographies dropped today on expectations that the geopolitical risks stemming from the conflict between Russia and Ukraine would prevent the US Federal Reserve from aggressively hiking rates.
Asia-Pacific shares rose on Friday as investors assessed the Russia-Ukraine conflict following a massive comeback on Wall Street overnight. Japan’s Nikkei 225 was up 1.05 percent, while the Topix gained 0.33 percent. The S&P/ASX 200 in Australia advanced 0.4 percent.
Indian Market:
Trends on the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 286 points.
Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said that the Indian economy is now poised for recovery but high crude oil price is a cause for concern. The banking sector in the country is stable, capital is available and credit offtake is poised to take off, he said at a webinar organised by Bharat Chamber of Commerce.
"We are not unique to the phenomenon of uncertain growth and high inflation due to the pandemic. Developed countries are also facing the same problem,” he said.
The Analyst's Radar:
Morgan Stanley on ONGC | Every $1/mmBtu change in gas prices affects ONGC's earnings by 5-8 percent, as per Morgan Stanley. The brokerage has an 'overweight' call on the stock.
Jefferies on Indus Towers | Vodafone's stake sale may be a key near-term overhang, said Jefferies while maintaining its 'buy' call on the stock. Risk-reward is very favourable post steep correction, the brokerage house pointed out.
CLSA on DLF | The brokerage house has trimmed its FY23/FY24 revenue estimate for DLF by 2 percent and 5 percent respectively. CLSA has upgraded its rating on shares of DLF to 'buy' as it sees upside that is 3 times of downside potential, operations are at decade best.
Morgan Stanley on IndiGo | Given strong recovery, expect multiples to revert to pre-covid median levels, Morgan Stanley said. It believes that improved relative position going into an upcycle can help capture the bulk of profits for IndiGo.
FII and DII data
With the invasion of Ukraine by Russia and boiling oil prices, foreign institutional investors (FIIs) net sold Rs 6,448.24 crore worth of Indian equities, but domestic institutional investors (DIIs) managed to compensate the FII outflow by net buying Rs 7,667.75 crore worth of shares on February 24
Stock Specific News:
NHPC | The company has signed a securitisation facility of Rs 1,020 crore with HDFC Bank. NHPC will monetise Chamera-1 Power Station through securitisation.
Apollo Hospitals Enterprise | The company will be included in Nifty50.
Indian Oil Corporation | The company will be excluded from Nifty50.
Infosys | The technology company launches Metaverse Foundry to quicken clients' exploration.
InterGlobe Aviation and SpiceJet | Government may allow resumption of regular international flights around March 15-20, government sources told CNBC-TV18.
PI Industries | The company launches pesticide 'Disruptor' for rice crop.
Linde India | The company's Q3 consolidated net profit came in at Rs 67.8 crore as against Rs 56.8 crore while revenue rose to Rs 6.44 billion from Rs 4.75 billion YoY. Its operating margin shrunk to 23.3 percent from 27.5 percent YoY.
Minda Industries | The company has acquired an additional stake in two companies--YA Auto Industries and Auto Components--and bought fresh shares in Samaira Engineering and SM Auto Industries.
KSB | The company's profit grew by 23 percent YoY to Rs 39.4 crore for the December quarter and revenue rose 20 percent to Rs 444.6 crore during the reporting quarter.
Hazoor Multi Projects | The company has bagged a contract from Gayatri Projects for the completion of the balance work of Chainage in Ahmednagar, Maharashtra.
Cupid | The firm has received a purchase order from the United National Population Fund for the supply of male condoms worth Rs 4.25 crore and water-based lubricant worth Rs 1.01 crore.