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Sensex Opens in Green; Telecom and Energy Stocks Gain
Tue, 19 Mar 09:30 am | Rini Mehta, TM Team

Asian stock markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.1% while the Hang Seng is down 0.1%. The Nikkei 225 is trading down by 0.3%. Banks and tech helped lead Wall Street higher on Monday, while Boeing and Facebook were a drag and investors eyed this week's US Federal Reserve meeting for affirmation of its commitment to "patient" monetary policy.

Back home, India share markets opened on a firm note. The BSE Sensex is trading up by 106 points while the NSE Nifty is trading up by 21 points. The BSE Mid Cap index and BSE Small Cap index opened up by 0.3% and 0.2% respectively.

Except capital goods stocks and automobile stocks, all sectoral indices have opened in green with oil & gas stocks and telecom stocks leading the pack of gainers.

Speaking of the broader markets, the current scenario in the Indian stock market looks very similar to what happened in 2013.

Back then, mid and small cap stocks witnessed a similar correction while the BSE Sensex stayed put.

2018-19 has also followed a similar pattern.

Long term-capital gains tax was introduced in last year's budget. We've seen corporate governance issues leading to auditor exits and finally the IL&FS impact.

The rally that followed in 2013 was led by mid and small caps.

Will 2019 pan out the same way?

Is It 2013 All Over Again?

As per research analyst, Sarvajeet Bodas, all you can do is control what can be controlled.

Pick up fundamentally strong stocks with an able management at the helm.

These are businesses that have delivered earnings even in tough times.

These stocks are most likely to lead the next leg of the market rally when it happens.

Moving on, the rupee is currently trading at Rs 68.59 against the US$.

The rupee on Monday continued its climb against the dollar as it appreciated past the 69-mark to close at an over seven-month-high of 68.53 to the greenback.

The gains in the domestic unit come at a time foreign portfolio investors (FPIs) continue to pour money into domestic equities.

So far this month, they have invested over US$3 billion in shares.

Apart from the FPI inflows, there have been other developments that have supported the currency.

Global central banks are in an accommodative mode which has helped emerging markets such as India.

Moreover, India's trade deficit for February at US$9.6 billion hit a 17-month low because of a contraction in imports.

At the same time, the equity markets have been on an up move amid expectations that the current government will come back to power with stable numbers.

At the inter-bank foreign exchange market, the rupee opened at 68.92 and rose to a high of 68.45 during the day. It settled at 68.53, a gain of 57 paise against the dollar over its previous close. This was the highest closing level for the rupee since 1 August 2018, when it had ended at 68.43.

Last Friday, the domestic unit had closed at 69.10 against the dollar and over the last six trading sessions, it has appreciated 161 paise.

The greenback's weakness vis-a-vis major global currencies also supported the sentiment in favour of the rupee. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.2% to 96.40.

The rupee continues to remain firm despite the RBI's announcement of a US$5-billion-rupee swap arrangement last week under which it will buy dollars and pump in the rupee.

Though the move initially led to some weakness in the domestic currency, expectations of strong inflows, including the US$6 billion that ArcelorMittal will bring in for Essar Steel, boosted sentiments.

Further, market circles are also optimistic that FPIs will look at corporate bonds.

Moving on to another development. As per an article in a leading financial daily, Larsen & Toubro has bought a 20.3% stake in Mindtree for Rs 32.7 billion from early investor VG Siddhartha, after a lot of noise and the firing of a warning shot by promoters of the mid-tier IT services firm.

Reportedly, L&T will pay Rs 980 per share.

The deal, signed on Monday evening, gives the Cafe Coffee day founder a handsome exit from the company, which he first backed two decades ago.

It also provides Siddhartha with much-needed cash to retire the debt piled up in his flagship business.

Engineering giant L&T is expected to spend as much as Rs 74.6 billion to raise its stake to 66.3% in the IT services firm, which will remain an independent listed entity.

The deal includes an open offer to acquire 31% shares at Rs 50.3 billion and an advisory to its broker Axis Capital to buy as much as 15% shares from the open market to the tune of Rs 24.3 billion.

Mindtree's founders led by Natarajan have resisted the transaction fearing a loss of control over the company, which they claim has the potential to grow faster as more clients adopt technology to transform their business.

Natarajan had written to the L&T board on Saturday objecting to what he termed as the hostile takeover of the company, which could be detrimental to its investors, employees and customers.

The Mindtree board is due to meet on Wednesday to decide on a share buyback proposal, which now appears under threat after the closure of the deal between Siddhartha and L&T.

L&T share price and Mindtree share price opened down by 1.6% and 0.8% respectively.

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!

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Apr 23, 2019 03:26 PM

SUZLON ENERGY share price has surged by 8% and its current market price is Rs 7. The BSE OIL & GAS is up by 0.9%. The top gainers in the BSE OIL & GAS Index is SUZLON ENERGY (up 8.2%). The top losers are INDRAPRASTHA GAS (down 0.2%) and PETRONET LNG (down 0.4%).

AEGIS LOGISTICS Plunges by 7%; BSE 500 Index Up 0.1% (Today's Market)

Apr 23, 2019 02:44 PM

AEGIS LOGISTICS share price has plunged by 7% and its current market price is Rs 207. The BSE 500 is up by 0.1%. The top gainers in the BSE 500 Index are RELIANCE NAVAL & ENGINEERING LTD (up 9.9%) and JET AIRWAYS (up 9.2%). The top losers are AEGIS LOGISTICS (down 7.5%) and BHARTI AIRTEL (down 9.0%).

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Sensex Trades Over 100 Points Higher; Yes Bank, Bajaj Finance Among Top Gainers (Today's Market)

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The BSE Sensex is trading up by 113 points, while the NSE Nifty is trading up by 32 points.

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