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Sensex Rallies 1,200 Points in Opening Trade; Bajaj Finance, HDFC Bank & Tata Motors Surge 5%
Tue, 2 Feb 09:30 am

Asian stock markets advanced amid receding concerns about volatile retail trading, progress on vaccinations and talks over US stimulus.

The Hang Seng is trading up by 1.7% while the Nikkei is trading higher by 0.9%.

US stock markets ended higher, bouncing after the worst weekly loss since October after worries about frenzied trading in GameStop Corp. and a handful of other heavily shorted stocks sparked a ripple of selling on Wall Street.

The Dow Jones Industrial Average gained 229 points, up 0.8% while the Nasdaq Composite surged 333 points or 2.6%.

Back home, Indian share markets have opened on a strong note, following the trend on SGX Nifty and tracking gains in Asian peers.

Market participants will track shares of HDFC, Escorts Tata Consumer Products, PI industries, Dixon Technologies, Ajanta Pharma and Vinati Organics as these companies will announce their December quarter results later today.

The BSE Sensex is trading up by 1,211 points. Meanwhile, the NSE Nifty is trading higher by 349 points.

Bajaj Finance is among the top gainers today. Hindustan Unilever, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 2.3%. The BSE Small Cap index is trading higher by 1.9%.

All sectoral indices are trading on a positive note with stocks in the banking sector, finance sector and auto sector witnessing most of the buying interest.

The rupee is trading at 73.06 against the US$.

Gold prices are trading down by 0.1% at Rs 48,386 per 10 grams.

In news from the commodity space, silver prices fell more than 2% today as investors booked profits following a rally of as much as 11.2% to a near eight-year peak in the previous session.

Spot silver was down 1.7% to US$ 28.48 an ounce, having hit US$ 30.03 on Monday, its highest since February 2013.

Silver prices rocketed as retail investors, egged on by messages on Reddit, pile into the market in an attempt to push up prices.

The spike in prices came after retail sites were overwhelmed with demand for bars and coins at the weekend. Outlets including Apmex said they were unable to process orders until Asian markets open because of unprecedented consumption.

Meanwhile, domestic gold prices plunged over Rs 2,100 yesterday after the Union Finance Minister Nirmala Sitharaman announced the changes in customs duty rate for precious metals.

April gold futures tumbled Rs 2,136 intraday to Rs 47,201 per 10 grams while silver futures surged Rs 4,720 to Rs 74,426 per kg.

The customs duty on gold and silver was reduced to 7.5%. India slashed import duties on gold and silver yesterday in a surprise move that industry officials say could boost retail demand and curtail smuggling.

Speaking of stock markets, which stocks and commodities should you trade in this bullish environment?

India's #1 trader, Vijay Bhambwani answers this question in his recent video for Fast Profits Daily.

Tune in here to find out more:

In news from the defence sector, defence minister Rajnath Singh said on Monday the budget announced by Union finance minister Nirmala Sitharaman will expedite the country's economic transformation as he congratulated her for presenting a financial document, which he said laid a strong foundation of a self-reliant India.

In a series of tweets, Singh thanked the finance minister for increasing the defence budget to Rs 4.78 lakh crore and pointed it was nearly a 19% increase in India's defence capital expenditure, and the highest ever increase in the capital outlay for defence in more than a decade.

Out of the total amount allocated by the Centre towards the defence sector, Rs 3.62 lakh crore will be for the armed forces and Rs 1.35 lakh crore had been set aside for capital outlay to buy new weapons, aircraft, warships and other military hardware, Sitharaman said during the budget presentation.

In last year's Union budget, Rs 4.71 lakh crore was allocated for the defence sector of which capital outlay stood at Rs 1.13 lakh crore.

The total revenue expenditure for defence, which comprises expenses on payment of salaries and maintenance of establishments has been pegged at Rs 3.37 lakh crore. Meanwhile, Rs 1.15 lakh crore has been set aside for payment of pensions under the revenue expenditure.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of the defence sector, have a look at the chart below which shows the top 5 military spending countries in the world as of 2019:


According to a SIPRI (Stockholm International Peace Research Institute) report, India was the third largest military spending country in the world in 2019.

Here's what we wrote about it in one of the editions of Profit Hunter:

  • If you look at the chart closely, you will realise it is likely to remain among the top spenders in the coming years.

    It's because of the second largest spender shown in the chart, China.

    With rising tensions between the two countries, the incentive is strong for India to keep up with China.

    It all makes sense for the government to focus on this sector in a big way in the near future.

    The government's 'Atmanirbhar' push will get a massive boost through local defence manufacturing. This will create profitable opportunities in defence stocks for astute investors.

Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in the defence space. As per Tanushree, defence will be a big wealth-creating opportunity.

Back in June, she recorded a video about India's best defence stocks.

Tune in to the video here:

Moving on to stock specific news...

Tata Motors is among the top buzzing stocks today.

Tata Motors has recorded 94% growth in the domestic passenger vehicle segment in January. Compared to just 13,894 units in January 2020, Tata Motors sold 26,978 units of passenger cars last month.

The company also clocked a 15% rise in sales compared to December 2020. The Tata group company had sold 23,545 units of passenger cars in the last month of the previous year.

Tata Motors had reported 84% increase in sales in December 2020 as well with 23,545 units sold compared to 12,785 units in the year-ago period.

The massive growth numbers in the passenger vehicle segment has helped the company clock an impressive overall growth in January this year. The carmaker said it registered an overall growth of 28% across segments, including exports, in January.

The company issued a statement saying, "limited sales in the domestic & international market for January 2021 stood at 59,959 vehicles, compared to 47,862 units during January 2020."

Tata Motors share price has opened the day up by 5.4%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


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