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?  

IT, FMCG drag markets down
Wed, 7 Apr 01:30 pm

Profit booking took its toll on the Indian markets as they dropped sharply towards the dotted during the previous hour of trade. Stocks that are currently under pressure include those form the IT, FMCG, and banking spaces. Those from the oil & gas and auto spaces are leading the pack of gainers.

While the BSE-Sensex is trading marginally higher, the NSE-Nifty is trading marginally lower. However, stocks from the midcap and smallcap space continue to see interest as the BSE-Midcap and BSE-Smallcap indices are trading higher by about 0.3% and 0.6% respectively. The rupee is trading at 44.49 to the US dollar.

Over the past few days, small cap stocks have been seeing some interest by the investing community. In fact there have been quite a few articles and write ups in business dailies in recent times suggesting that investors consider investing in mid and small caps stocks at present levels. It must be noted that the returns from the BSE-Midcap and BSE-Smallcap indices have been much higher as compared to the returns of the BSE-Sensex. While the BSE-Sensex has moved up by nearly 81% over the last year, the BSE-Midcap and BSE-Smallcap indices have moved up by nearly 130% and 162%. With this upsurge, the valuations have moved up significantly as well. As of yesterday's closing prices, the BSE-Sensex was valued at a price to earnings multiple of about 21.8 times, which by any means is not attractive. The valuations of the BSE-Midcap and BSE-Smallcap indices stood at 19.2 times and 16.3 times respectively.

While on the face of it, the valuations look more attractive, it must be noted that midcaps and smallcaps are relatively much more riskier stocks to invest in as compared to their larger peers. This is on the back of lesser availability of information as well as their size. Looking at the historical valuations of these indices, we believe that valuations are anything but attractive. This is especially when compared to the valuation of their larger peers.

Real estate stocks are currently trading firm led by Orbit Corporation, Ackruti City and DLF. A leading business daily has reported that real estate major Unitech is planning to hive off its non-core businesses such as telecom, SEZs, and list them by issuing shares to its existing shareholders. As per the management, the company will be setting up a restructuring committee to explore and evaluate opportunities for potential merger of subsidiaries, demerger and other forms of restructuring. The management plans to do the same because it believes that the non-core businesses are not really valued in its current market cap which stands at nearly Rs 183 bn. Just for example is the company's stake in its telecom venture Uninor, which is valued at about Rs 40 bn.

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 "IT, FMCG drag markets down". Click here!


Stock Market Updates

Sensex Rises 477 Points; Trading Resumes on NSE (Today's Market)

Feb 24, 2021 Special Update

The BSE Sensex is trading up by 477 points, while the NSE Nifty is trading up by 135 points.

SIEMENS at All Time High; BSE CAPITAL GOODS Index Up 0.5% (Today's Market)

Feb 24, 2021 02:54 PM

SIEMENS share price has hit an all time high at Rs 1,922 (up 1.7%). The BSE CAPITAL GOODS Index is up by 0.5%. Among the top gainers in the BSE CAPITAL GOODS Index today are SIEMENS (up 1.7%) and HONEYWELL AUTOMATION (up 1.9%). The top losers include HAVELLS INDIA (down 0.2%) and GRAPHITE INDIA (down 0.2%).

MUTHOOT FINANCE Share Price Down by 6%; BSE 500 Index Up 0.5% (Today's Market)

Feb 24, 2021 02:36 PM

MUTHOOT FINANCE share price is trading down by 6% and its current market price is Rs 1,315. The BSE 500 is up by 0.5%. The top gainers in the BSE 500 Index are INDIAN OVERSEAS BANK (up 10.0%) and BANK OF MAHARASHTRA (up 10.0%). The top losers are MUTHOOT FINANCE (down 5.8%) and HIMADRI SPECIALITY CHEMICAL (down 5.4%).

ZENSAR TECHNOLOGIES at 52 Week High; BSE 500 Index Up 1.0% (Today's Market)

Feb 24, 2021 01:02 PM

ZENSAR TECHNOLOGIES share price has hit a 52-week high. It is presently trading at Rs 282. BSE 500 Index is up by 0.5% at 19,684. Within the BSE 500, ZENSAR TECHNOLOGIES (up 5.3%) and NAVA BHARAT VENTURES (up 11.2%) are among the top gainers, while top losers are MAGMA FINCORP and RELIANCE POWER.

Sensex Trades Over 200 Points Higher; Dow Futures Down by 103 Points (Today's Market)

Feb 24, 2021 12:30 pm

BSE Sensex is trading up by 226 points, while the NSE Nifty is trading up by 113 points.

OMAXE Share Price Down by 6%; BSE REALTY Index Up 0.5% (Today's Market)

Feb 24, 2021 12:22 PM

OMAXE share price is trading down by 6% and its current market price is Rs 72. The BSE REALTY is up by 0.5%. The top gainers in the BSE REALTY Index are PRESTIGE ESTATES (up 1.9%) and DLF (up 1.9%). The top losers is OMAXE (down 5.8%)..

View More Indian Share Market News

Most Popular

Intraday Trading for a Living(Fast Profits Daily)

Feb 15, 2021

In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

Penny Stock Master Series: The Quest for 10X Profits in 10 Years(Profit Hunter)

Feb 12, 2021

This is first of the three part master series. In these editorials, I'll show you how to earn 10X returns from a penny stock portfolio over 10 years.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021(Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla(Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Feb 24, 2021 (Close)