Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets will remain closed on 15th August 2018.
We wish all our readers a Happy Independence Day!

Sensex Trades on a Flat Note; IT Stocks Witness Buying
Thu, 9 Feb 01:30 pm

After opening the day on a positive note, the Indian share markets witnessed selling and are currently trading on a flat note with a negative bias. Sectoral indices are trading on a mixed note, with stocks in the IT sector and the realty sector witnessing maximum buying interest. Stocks in the banking sector and the metal sector are trading in the red.

The BSE Sensex is trading down 24 points (down 0.1%) and the NSE Nifty is trading down 7 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading flat, while the BSE Small Cap index is trading up by 0.2%. The rupee is trading at 67.03 to the US$.

The Reserve Bank of India, in its sixth bi-monthly policy for FY17 made some key economic decisions and announcements.

Apart from leaving the key interest rates unchanged, the central bank's deputy governor said that the RBI will look at all options, including setting up a so-called bad bank - as suggested in the Economic Survey this year - for resolving the banking industry's bad loans.

The Deputy governor's comments come in the wake of the Economic Survey's suggestion for setting up a bad bank, or public sector asset rehabilitation agency, to be funded by government securities, equity infusion from the private sector, or by using RBI's excess capital to tackle the Rs 6.7 trillion of bad loans choking the banking system.

India is Near the Bottom of the Global NPA List

India is Near the Bottom of the Global NPA List

The problem of bad loans is indeed quite severe and when we compare it with other global peers it looks daunting.

Out of the ten major economies facing NPA problems, India is ranked seventh.

If the RBI does consider a bad bank, this would represent a reversal of its views. Former governor Raghuram Rajan argued against this concept.

The Deputy Governor, Viral Acharya himself is a firm supporter of the idea of a bad bank to clean up the toxic loans on the books of Indian banks.

Just Released: Multibagger Stocks Guide
(2017 Edition)

In this report, we reveal four proven strategies to picking multibagger stocks.

Well over a million copies of this report have already been claimed over the years.

Go ahead, grab your copy today. It's Free.

NO-SPAM PLEDGE - We will NEVER rent, sell, or give away your e-mail address to anyone for any reason. You can unsubscribe from The 5 Minute WrapUp with a few clicks. Please read our Privacy Policy & Terms Of Use.

It remains to be seen how the creation of a 'bad bank' will help the ailing banking sector. One of the major challenges in the implementation will be ensuring that banks sell the stressed assets to either asset reconstruction companies or private investors at the right price.

If the concept is adopted, it will have a significant impact on India's banking sector. We will be sure to keep an eye out.

Moving on to news from stocks in the steel sector. According to a leading financial daily, the country's largest steel maker is planning to spend up to Rs 40 billion on the modernisation and expansion of its plants in the coming fiscal.

The company outlined its plans to invest the amount throughout its plans on improving processes and adopting innovative technology.

SAIL's management plans to fund the capital expenditure through debt.

In 2015-16, the public sector undertaking (PSU) had spent Rs 45 billion as capital expenditure.

Crude steel production of SAIL, which was at 14.3 million tonnes (MT) in FY16, would increase to 21.4 MTPA post expansion in FY17.

The PSU's saleable steel production, which was at 12.4 MT in 2015-16, would augment to 20.2 MTPA post expansion in 2016-17. The hot metal production, which stood at 15.7 MT in FY16, would reach 23.5 MT post expansion.

SAIL also plans to ramp up capacity further to 50 million tonnes per annum (MTPA) by 2025.

The proposed capacity expansion to 50 mtpa is in line with government's vision of enhancing India's steel-making capacity to 300 mtpa by 2025.

Increased capacity expansion and added investments in modernization augurs well for the steel major. This could help the SAIL stock price reach new heights. Currently, the stock is trading close to its 52-week high. However, it too has seen significant downturns during the year amid depressed global steel demand.

This tells us one thing - stock markets are extremely volatile. A period of upheaval may be followed by an unprecedented downturn. We think the best way to counter this volatility is to follow a long term value investing approach.

Along with keeping an eye on valuations, it's also important that you have a process in place. Many of you have already tasted the fruits of one of Rahul Shah's processes with his Microcap Millionaires service.

However, Rahul is not resting on his laurels. A couple of years back, Rahul stumbled upon a cousin of Value Investing going by the name momentum investing. So in the last 18 months, he has been working hard at back testing a market strategy to benefit from it.

Profit Velocity is Rahul Shah's new service that aims to exploit Mr Market using a momentum-based strategy. And the first report goes live on 10th February 2017.

With Profit Velocity, Rahul has created a system to help subscribers potentially fetch gains several times those of the benchmark index. Our Founder Member opportunity, which closes at midnight of 10th February, offers a whopping 60% discount on the usual membership fees for Profit Velocity.

So don't miss out. Act now to get your own system in place.

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

Equitymaster requests your view! Post a comment on "Sensex Trades on a Flat Note; IT Stocks Witness Buying". Click here!


Views on News

Two Meetings That Nailed the Idea of Owning Brilliant Smallcaps Without Buying Them (The 5 Minute Wrapup)

Mar 22, 2018

Certain blue chips hold the potential of delivering returns comparable to small-cap stocks. With these stocks, you can get the best of both worlds.

What They Forgot to Tell You About Sensex at One Lakh (Profit Hunter)

Nov 29, 2017

Stocks that could beat Sensex returns in the long term.

Plan Your Financial Freedom This Independence Day (Outside View)

Aug 14, 2018

PersonalFN explains how you should go about planning your financial freedom this Independence Day.

Is Your Mutual Fund Worth Your Money? (Outside View)

Aug 14, 2018

PersonalFN explains why you cannot solely rely on star-ratings to pick the best mutual funds, and the approach one should follow.

"The Worst is Behind Us" - Why Public Sector Bank CEOs Can't Be Taken Seriously (Vivek Kaul's Diary)

Aug 14, 2018

Between June 2017 and June 2018, bad loans of 19 out of 21 public sector banks, has gone up by 20%, on the whole.

More Views on News

Most Popular

Should You Buy These Mouthwatering High Dividend Stocks?(Profit Hunter)

Aug 1, 2018

Many stocks are yielding dividends even upwards of 4%-5%. Here are the kinds you should pick, and the ones to avoid.

How to Make Big Profits by Following India's Best Investors(The 5 Minute Wrapup)

Aug 3, 2018

In a time when stocks recommended by so-called 'gurus of the market' are crashing, let Kunal Thanvi guide you to the best gurus...and their best stocks.

Does This Indicator Tell Us the Sensex is Headed for a Correction?(Vivek Kaul's Diary)

Aug 3, 2018

To what extent have foreign flows influenced Indian stock markets? How do we see it panning out now?

NFO - Axis Equity Hybrid Fund: A Worthy Proposition?(Outside View)

Aug 1, 2018

PersonalFN explains if NFO: Axis Equity Hybrid Fund, would be a worthy proposition currently.

Is Franklin India Smaller Companies Fund Worth Your Money(Outside View)

Aug 2, 2018

Although positioned as a small cap fund, Franklin India Smaller Companies Fund has been investing a significant portion of its assets in mid-caps along with a nominal exposure to large caps.


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Aug 14, 2018 (Close)