X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 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

MEMBER'S LOGINX

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

Markets will remain closed on 19th April, 2019 on account of Good Friday.

Sensex Opens Over 300 Points Down; Realty and Metal Stocks Drag
Mon, 25 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 1% while the Hang Seng is down 1.7%. The Nikkei 225 is trading down by 3.2%. Wall Street stocks sold off sharply on Friday, with all three major US stock indices posting their biggest one-day percentage declines since 3 January, as weak factory data from the United States and Europe led to an inversion of US Treasury yields.

Back home, India share markets opened on a negative note. The BSE Sensex is trading down by 343 points while the NSE Nifty is trading down by 96 points. The BSE Mid Cap index opened down by 0.3% while BSE Small Cap index opened down by 0.1%.

Barring power stocks, all the sectoral indices have opened the day in red with realty stocks and metal stocks leading the losers.

The rupee is currently trading at 69.12 against the US$.

Speaking of Indian share markets in general, how do things look on the valuations front?

The Sensex price to earnings ratio has moved over the last five years. It has mostly been in a rising trend, except some intermittent declines.

But the Sensex tells a very a selective, skewed story of just the 30 largest companies.

So, it would be worth seeing the valuation trend of a much broader index.

Ankit Shah just did that and picked the NSE 500 for his latest study.

What he found was the NSE 500 index was trading cheap before the BJP came to power at the Centre in 2014. Since then, the price to earnings ratio of the index has been trending higher, like the Sensex.

It is interesting to note that the NSE 500 index has almost doubled between February 2014 and now. The price to earnings multiple of the index has gone up almost 70% during the same period, as can be seen from the chart below.

Market Valuations - 2014 to 2019

What does all of this mean?

Here's what Ankit wrote about it in today's edition of The 5 Minute WrapUp...

  • What this means is that the gains have mostly come from valuation multiple expansion and only about 30% from earnings growth.

    While the NSE 500 P/E ratio is down 12% from its August 2018 high of 34.5, it's still quite on the higher side.

    As such, I believe the key to the next bull run would be a good growth in earnings of listed Indian companies.

Whether this growth comes in, and how, remains to be seen. We will keep you updated on developments from this space.

In the news from the economy. Finance Minister Arun Jaitley said that the government had exceeded its disinvestment target of Rs 800 billion for 2018-19 by Rs 50 billion, taking the proceeds to Rs 850 billion.

The Department of Investment and Public Asset Management (DIPAM) has crossed the disinvestment target for the second year in a row.

On Friday, Power Finance Corp completed the acquisition of the government's 52.6% stake in Rural Electrification Corp for Rs 145 billion. The fifth tranche of the Central Public Sector Enterprise Exchange Traded Fund (CPSE ETF) also closed on Friday, clocking in Rs 95 billion.

This translated to Rs 240 billion worth of transactions realised in a day.

In 2017-18, DIPAM had raised Rs 1 trillion compared to a budgeted target of Rs 725 billion. The bulk of that was realised from ONGC's acquisition of Hindustan Petroleum.

The target for 2019-20 stands at Rs 900 billion.

As of February 28, the Centre had garnered Rs 564.7 billion. Before Friday's receipts of Rs 240 billion, DIPAM had, in March, garnered Rs 10 billion from the strategic sale of Dredging Corp to a consortium of four ports and Rs 20 billion from the sale of enemy shares.

The government has also completed two initial public offerings (IPOs) of Mazagon Docks and MSTC this month.

For the fiscal year, DIPAM heavily depended on its marquee ETFs, CPSE and Bharat 22. While Rs 187.3 billion has been garnered from two fund offerings of the Bharat 22 ETF this fiscal, Rs 265 billion has come in from the CPSE ETF, including the latest offering.

Besides, firms like ONGC, Oil India, BHEL, Nalco and other PSUs have carried out buybacks, which have resulted in disinvestment revenue of about Rs 100 billion. Other smaller acquisitions have also taken place.

These include NBCC's purchase of HSCC, and WAPCOS' acquisition of NPCC. Some other IPOs this year include IRCON, RITES, Garden Reach Shipbuilders, and Mishra Dhatu Nigam. The big 'offer for sale' was for a 3% stake in Coal India, worth Rs 52.2 billion.

Moving on to other news. As per an article in a leading financial daily, India's foreign exchange (forex) reserves increased by US$3.6 billion during the week ended 15 March.

According to the Reserve Bank of India's (RBI) weekly statistical supplement, the overall forex reserves rose to US$405.6 billion from US$402 billion reported for the week ended 8 March.

India's forex reserves comprise Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs) and India's reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by US$3.5 billion to $377.8 billion.

Besides the US dollar, FCAs consist of 20-30% of the other major global currencies.

The RBI's weekly data showed that the value of the country's gold reserves rose by US$38.9 million at $23.4 billion.

The SDR value inched up by US$5.9 million to US$1.46 billion, while the country's reserve position with the IMF grew by US$12.1 million to US$2.99 billion.

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

Equitymaster requests your view! Post a comment on "Sensex Opens Over 300 Points Down; Realty and Metal Stocks Drag". Click here!

  

Stock Market Updates

Sensex Ends 135 Points Lower; Realty and Telecom Stocks Witness Selling (Today's Market)

Apr 18, 2019 Closing

The BSE Sensex ended the day down by 135 points, while the NSE Nifty closed down by 44 points.

RELIANCE CAPITAL Plunges by 10%; BSE 500 Index Down 0.4% (Today's Market)

Apr 18, 2019 02:04 PM

RELIANCE CAPITAL share price has plunged by 10% and its current market price is Rs 173. The BSE 500 is down by 0.4%. The top gainers in the BSE 500 Index are SPICEJET (up 5.9%) and STAR CEMENT LTD (up 5.9%). The top losers are RELIANCE CAPITAL (down 10.0%) and JET AIRWAYS (down 29.4%).

CRISIL Plunges by 5%; BSE 500 Index Down 0.5% (Today's Market)

Apr 18, 2019 01:30 PM

CRISIL share price has plunged by 5% and its current market price is Rs 1,600. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index are SPICEJET (up 5.6%) and DEEPAK FERTILISERS (up 3.9%). The top losers are CRISIL (down 5.0%) and RADICO KHAITAN (down 5.2%).

Sensex Turns Red; Jet Airways Bleed (Today's Market)

Apr 18, 2019 12:30 pm

The BSE Sensex is trading down by 111 points, while the NSE Nifty is trading down by 34 points.

RADICO KHAITAN Plunges by 5%; BSE 500 Index Down 0.5% (Today's Market)

Apr 18, 2019 10:42 AM

RADICO KHAITAN share price has plunged by 5% and its current market price is Rs 354. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index are SPICEJET (up 6.9%) and DEEPAK FERTILISERS (up 3.4%). The top losers are RADICO KHAITAN (down 5.0%) and RELIANCE CAPITAL (down 7.6%).

DISH TV Plunges by 5%; BSE 500 Index Down 0.6% (Today's Market)

Apr 18, 2019 10:28 AM

DISH TV share price has plunged by 5% and its current market price is Rs 40. The BSE 500 is down by 0.6%. The top gainers in the BSE 500 Index are SPICEJET (up 5.9%) and IPCA LABS (up 3.5%). The top losers are DISH TV (down 5.3%) and PRESTIGE ESTATES (down 5.5%).

View More Indian Share Market News

Most Popular

Stocks that Could Be Out of Reach Post Elections(The 5 Minute Wrapup)

Apr 9, 2019

It's a matter of time before the stocks catch the fancy of the markets and big investors.

3 Indian Stocks with Amazon-Like Potential(Profit Hunter)

Apr 10, 2019

We have identified 3 stocks with huge wealth building potential which meet our 'Click of a Button' criteria.

This Company is Making a Big Comeback and You Can Now Profit from Its Example(The 5 Minute Wrapup)

Apr 10, 2019

How Dell got its mojo back.

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Apr 18, 2019 (Close)

MARKET STATS