D-Street Buzz: Nifty Auto underperforms dragged by Maruti; IRCTC, Avenue Supermarts hit upper circuit

The Reserve Bank of India reduced repo rate by 75 basis points to 4.4 percent. MPC voted for a sizable reduction in Repo Rate and maintaining Accommodative Stance. There were some differences in quantum of reduction and MPC voted by 4:2 majority to reduce policy repo rate by 75 bps to 4.4 percent, the RBI Governor said in the press meet.

The Indian stock market seems not happy with the measures taken by RBI as Sensex is down 206.29 points or 0.69 percent at 29740.48, and the Nifty gained 9.80 points or 0.11 percent at 8651.25.

Although, the banking index is outperforming all other sectors, Nifty Auto is dragging the market lower. The index is down 1.5 percent, the top losers being Maruti Suzuki which fell over 4 percent as the auto factories remains under lockdown amid spread of coronavirus. The other losers included Hero MotoCorp, Bharat Forge, Eicher Motors, TVS Motor Company and Apollo Tyres.

Nifty Infra also shed over a percent dragged by Bharti Airtel which tanked over 6 percent and is the top index loser. Apollo Hospitals, Ramco Cements, Shree Cements and Tata Power are the other losers.

Among the oil & gas names, HPCL and GAIL India shed over 4 percent each followed by Indian Oil Corporation and Reliance Industries.

Bank continue to lead the way with Axis Bank jumping 12 percent followed by State Bank of India, IndusInd Bank and ICICI Bank. The most active stocks included ICICI Bank, HDFC Bank, State Bank of India, Axis Bank and Reliance Industries.

India VIX is down 0.49 and is trading at 71.18 level.

The market has been patiently waiting for our Central Bank's action in light of what all global Central Banks have done till now post the COVID-19 scare. The MPC has come with really big measures including rate cuts, CRR cut, floating rate long-term repos for investment grade corporate bonds and CPs, forbearance on loans in terms of moratoriums and deferral of interest payments, capital conservation buffer deferment by six months and offshore NDF market relaxations. This seems to be a comprehensive package and very necessary at this stage when growth will be under pressure, said Sudhakar Shanbhag, Chief Investment Officer, Kotak Mahindra Life Insurance.

220 stocks hit 52-week low on BSE including Future Lifestyle, Future Retail and Kalpataru Power among others.

184 stocks hit upper circuit on BSE including IRCTC, Edelweiss Financial, Avenue Supermarts, DCB Bank and Bajaj Holdings. On the other hand, 228 stocks hit lower circuit including Alok Industries, Future Consumer, Future Retail, Unitech, JMT Auto and Supreme Infra among others.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.