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Sensex and Nifty Witness Biggest One-Day Fall Ever, Oil Prices Plunges More than 20% after OPEC Deal Failure

Professor of Financial Economics and Part-time Value Investor, Transfin.
Mar 10, 2020 2:26 AM 5 min read

Sensex and Nifty witness biggest one-day fall ever. Gold jumps past seven-year high of $1,700 for the first time on virus fears. Oil prices plunge more than 20% after OPEC deal failure. Moody's slashes India's growth projection for 2020 to 5.3%, yet again.





Sensex and Nifty witness biggest one-day fall ever. 

Blood Bath

BSE Sensex and NSE Nifty today suffered their biggest one-day fall ever in absolute terms, amid crash in crude oil price and global selloff on the back of concerns that coronavirus would significantly slow down economic activity.


Benchmark indices Sensex and Nifty plunged over 6% during the intra-day session before trimming some of their losses later.


Sensex fell about 1,942 points before settling at 35,635 (-5.17%). Reliance Industries (RIL) was the biggest contributor to the index's fall, tumbling around 14% to hit its 52-week low of ₹1,094.95. Other index stocks that witnessed heavy selling were ICICI Bank, HDFC, TCS, Infosys, and HDFC Bank. 


Nifty50, on the other hand, slipped below 10,500-mark to end at 10,451 (-4.90%). All the sectoral indices on the NSE ended in the red with metals taking the hardest hit, slipping around 8%. [BS]


Gold jumps past seven-year high of $1,700 for the first time on virus fears. 

Birds of a Feather Flock Together

Gold prices rose above the seven-year high level of $1,700 per ounce on Monday for the first time after concerns over a widening coronavirus outbreak and its economic impact drove investors towards safe-haven assets, leading to a global stock market crash. [Reuters]




Oil prices plunge more than 20% after OPEC deal failure.

A Slippery Slope

Oil prices plunged more than 20% on fears of an all-out price war as Saudi Arabia slashed prices, reportedly gearing up to ramp up production above the 10 million barrel per day mark.


US West Texas Intermediate crude futures were down more than 20% at $32.90 per barrel as of 6:50 a.m. ET Monday, having earlier tumbled to a low of $27.34 per barrel.


International benchmark Brent crude futures were down nearly 20% to $36.30 per barrel. Brent futures were down more than 30% at their lows. [CNBC]


How does India stand to benefit from a global crude war?

Let's Step Back 

At a recent OPEC plus meeting in Vienna, Russia did not agree to OPEC's proposal for an additional production cut of 1.5 million barrels per day (mbpd), amid a slump in demand following the Covid-19 outbreak.


Prices are expected to witness more volatility, given Russia’s geo-strategic play in denying the production cut benefits to US shale oil producers and Saudi Arabia increasing production.


Considering that every dollar per barrel drop in crude prices reduces India’s import bill by ₹10,700cr ($1,142m) on an annualized basis, India only stands to gain from the global crude war. Click link for the full scoop. [Livemint]



Yes Bank Founder Rana Kapoor's wife, daughters charged by CBI.


Following extensive questioning for over 15 hours by the Enforcement Directorate (ED), Yes Bank Founder Rana Kapoor was arrested on Sunday on charges of money laundering. The Central Bureau of Investigation (CBI) also filed an FIR against Rana Kapoor on March 8th over suspicious transactions between Yes Bank, DHFL and companies owned by Kapoor’s daughters.


Rana Kapoor's wife and daughter have also been named as accused in an alleged bribery case.


Find live updates related to the Yes Bank crisis here. [Deccan Herald]


Withdrawal cap on Yes Bank may be lifted as early as March 15.

A Speed Recovery?

The ₹50,000 ($673) withdrawal cap on Yes Bank's depositors may be withdrawn as early as March 15, said an administrator appointed by the RBI. 


April 3rd is when the RBI-imposed moratorium is scheduled to end. [Moneycontrol]


Extra Crunch

Here's an interesting piece on how Yes Bank was run to the ground despite warning bells about a lender that never learnt how to say ‘No’. [Livemint]



Jaguar Land Rover India and Tata tie up for EV charging infra.

The Art of Performance

Jaguar Land Rover India has entered into a partnership with Tata Power to offer end-to-end electric vehicle (EV) charging infrastructure. 


Tata Power will provide charging solutions for JLR in India, across its retail network of 27 outlets in 24 cities and at customer's residence and/or office. India's largest integrated power company, Tata Power will be responsible for providing a range of AC and DC chargers, starting from 7 kilowatt (kW) to 50 kW capacity. [Motoroids]


Dream11 in talks to raise fresh funds, eyeing $2.25bn valuation. 

Funding a Dream

Mumbai-based gaming startup Dream11 is reportedly in the final round of negotiations to raise funding from global private equity firms TPG, Advent, James Murdoch’s Lupa Systems and homegrown Chrys Capital, valuing the fantasy sports platform at $2.25bn.


The funding round of $150m-$200m will be the largest for the company and will predominantly be a secondary sale of shares, providing an exit to Kalaari Capital, Multiples Alternate Asset Management and Think Investments. A small primary infusion may also be done. [ET Tech]



Moody's slashes India's growth projection for 2020 to 5.3%. 

No Escape

Moody’s has further slashed India's GDP growth forecast for 2020 to 5.4% from an earlier predicted growth of 6.6%, cautioning that the weakness in global economy due to the impact of the novel coronavirus outbreak could hurt India's recovery.


Moody's has also cut the 2021 GDP growth to 5.8% from 6.7%. [Business Today]


Prisoners of Hope

A group of researchers have analysed temperature and latitude to predict potential spread and seasonality for COVID-19 and also identified a number of cities that may be at risk in the coming weeks. Here's a look. Tweet This


Reports of coronavirus’ sensitivity to temperature has many awaiting summers with high hopes. However, as per this BS report, recent studies are not as optimistic. Read up to know why. [BS]


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