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?  

Sensex Opens Strong; Metal & Energy Stocks Lead
Wed, 20 Feb 09:30 am | Rini Mehta, TM Team

Asian stock markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.7% while the Hang Seng is up 0.9%. The Shanghai Composite is trading up by 0.1%. US stocks gained ground on Tuesday as upbeat results from Walmart boosted investor sentiment and high-level US-China trade talks resumed in Washington.

Back home, India share markets opened higher. The BSE Sensex is trading up by 248 points while the NSE Nifty is trading up by 74 points. Both, the BSE Mid Cap index and BSE Small Cap index opened up by 0.6%.

All sectoral indices are witnessing buying interest in the opening session with metal stocks and oil & gas stocks leading the gainers.

The rupee is currently trading at Rs 71.33 against the US$.

In the news from the global economy. The dollar sagged against its peers on Wednesday in the wake of falling US yields and as investors remained cautious ahead of the Federal Reserve's policy meeting minutes due later in the session.

--- Advertisement ---
517%...405%...even 976% Gains In A Few Years

Over hundreds of hours of rigorous back-testing...

This system has thrown up historical gains of 517%...405%...even 976% in just a few years.

There's a simple secret to it...

And anyone who's in on it will have early access to the market's most profitable stock ideas!

**Read all about it here.**

The US currency has also been weighed down as safe-haven demand for the liquid dollar has ebbed on optimism that a fresh round of talks between China and the United States would help resolve their trade conflict.

The benchmark 10-year US Treasury yield fell sharply to an 11-day low on Tuesday ahead of the Fed meeting minutes, which are due today.

The minutes from the January Fed meeting will be closely watched following a dovish statement from the central bank at their January policy-setting meeting.

Note that, one of the key determinants of liquidity flows in the stock markets is interest rates. The 10-year US Treasury bond is a global interest rate benchmark.

The prolonged artificial suppression of interest rates and money printing by the US Fed, flooded the global financial markets with cheap liquidity and lifted stock prices to frothy levels.

Now, just the way lower interest rates can fuel stock market rallies, the vice-versa is also true. If interest rates start firming higher, it can play spoilsport to the unbridled global stock market bull run.

In fact, the market correction we witnessed in February-March in 2018 can be attributed to the rising yield on the 10-year US Treasury bond.

This Chart Has the Key to Your Future Stock Market Returns

If interest rates go up further, foreign investors will either go slow on India or exit all together.

So, be careful. Don't take the abnormally high valuation multiples as the new normal. At the same time, don't exit the markets out of panic.

Stay invested.

Back home, non-banking financial companies (NBFC) space saw the biggest liquidity crunch last September.

However, this is about to turnaround soon as corporate bond issuances by NBFCs have risen by 30% in January, indicating renewed confidence among issuers and investors.

It can be noted that NBFCs are the biggest issuers of debt in the corporate bond market, controlling nearly 90% of the volume.

With the 30% spike in fresh issuances in January, their share has clawed backed to the near normal levels to 82.2% of the volume.

The corporate bond issuance on a monthly basis has been seen falling in the last 7 months due to the IL&FS bankruptcy faced by the sector.

Fresh corporate bond issuances by NBFCs saw a notable decline from 71.6% (of the total flow) in July 2018 to 64.6% in August 2018.

This scenario however changed between September 2018 to November 2018 as issuances rose each month rising to almost 80% in November 2018.

The situation went back to its earlier poor state led by liquidity challenges in December as bond sales by NBFCs plunged almost 30%, the reports noted.

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

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Sensex Opens Strong; Metal & Energy Stocks Lead". Click here!


Stock Market Updates

AXIS BANK Plunges by 5%; BSE BANKEX Index Down 5.8% (Today's Market)

Apr 1, 2020 02:05 PM

AXIS BANK share price has plunged by 5% and its current market price is Rs 380. The BSE BANKEX is down by 5.8%. The top gainers in the BSE BANKEX Index is YES BANK (up 5.8%). The top losers are AXIS BANK (down 5.2%) and KOTAK MAHINDRA BANK (down 9.9%).

TCS Plunges by 5%; BSE IT Index Down 5.1% (Today's Market)

Apr 1, 2020 02:03 PM

TCS share price has plunged by 5% and its current market price is Rs 1,834. The BSE IT is down by 5.1%. The top gainers in the BSE IT Index are SONATA SOFTWARE (up 7.2%) and CYIENT (up 2.6%). The top losers are TCS (down 5.3%) and ORACLE FINANCIAL (down 5.8%).

BHARTI AIRTEL Plunges by 5%; BSE 500 Index Down 3.5% (Today's Market)

Apr 1, 2020 01:59 PM

BHARTI AIRTEL share price has plunged by 5% and its current market price is Rs 443. The BSE 500 is down by 3.5%. The top gainers in the BSE 500 Index are SOBHA LIMITED (up 8.8%) and SONATA SOFTWARE (up 7.2%). The top losers are BHARTI AIRTEL (down 5.1%) and MRF LTD. (down 5.2%).

CONTAINER CORPORATION Plunges by 5%; BSE 500 Index Down 3.4% (Today's Market)

Apr 1, 2020 01:55 PM

CONTAINER CORPORATION share price has plunged by 5% and its current market price is Rs 338. The BSE 500 is down by 3.4%. The top gainers in the BSE 500 Index are SOBHA LIMITED (up 8.6%) and SONATA SOFTWARE (up 7.1%). The top losers are CONTAINER CORPORATION (down 5.5%) and MRF LTD. (down 5.1%).

AUROBINDO PHARMA Plunges by 5%; BSE HEALTHCARE Index Down 1.5% (Today's Market)

Apr 1, 2020 01:43 PM

AUROBINDO PHARMA share price has plunged by 5% and its current market price is Rs 435. The BSE HEALTHCARE is down by 1.5%. The top gainers in the BSE HEALTHCARE Index are JUBILANT LIFE SCIENCES (up 5.6%) and SHILPA MEDICARE (up 5.0%). The top losers is AUROBINDO PHARMA (down 5.3%).

Sensex Corrects Over 750 Points; Nifty Falls below 8,400-Mark (Today's Market)

Apr 1, 2020 10:30 am

Sensex falls over 750 points, Nifty breaks below 8,400.

View More Indian Share Market News

Most Popular

If I Were to Recommend One Stock Amid Coronavirus Outbreak, This Would be It.(Profit Hunter)

Mar 19, 2020

Coronavirus outbreak has made no impact on the long term prospects of my favourite smallcap. What it has indeed done is brought the company below my buy price, making it even more attractive investment at current price.

Sorry Warren Buffett, I'm Following This Man Instead of You in 2020(The 5 Minute Wrapup)

Mar 30, 2020

This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...

Why India Will Be the Biggest Winner in a Post-Coronavirus World(The 5 Minute Wrapup)

Mar 19, 2020

The way businesses operate will change in a major way post the coronavirus impact. Here's why India stands to benefit from this change...

A Big Trading Opportunity is Coming Your Way Soon(Fast Profits Daily)

Mar 25, 2020

I see a big opportunity to make fast profits on the horizon.

Coronavirus Sell-off Is a Perfect Time to 'Lockdown' this 'Crorepati' Stock(Profit Hunter)

Mar 24, 2020

Coronavirus crisis and panic selling has brought this quality smallcap to multiyear lows, making it a great bargain.


How to Trade the
Coronavirus Crash

Coronavirus Crash
Get this special report, authored by Equitymaster's top analysts, now.
We will never sell or rent your email id.
Please read our Terms


Apr 1, 2020 02:07 PM