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After opening the day on a negative note, the Indian stock markets have continued to trade in the red. Sectoral indices are trading on a discouraging note with stocks from the IT, realty and capital goods sector witnessing maximum selling pressure.
The BSE Sensex is trading down 134 points (down 0.5%) and the NSE Nifty is trading down 37 points (down 0.5%). The BSE Mid Cap index is trading up by 0.2% while the BSE Small Cap index is trading down 0.1%. The rupee is trading at 66.59 to the US$.
Gold is witnessing volatility ahead of US jobs report. This was seen as the yellow-metal ended lower yesterday on the back of pressure from the firm US dollar. However, it has recovered most of these losses today and was trading up by 0.5% at the time of writing.
Speaking of gold, Rahul Shah, Equitymaster co-head of research, in the recent edition of The 5 Minute WrapUp explains how the long-term Sensex-to-gold ratio can be a good way to measure the genuine wealth creation of an economy.
Also, a recent article form Vivek Kaul's Diary titled 'Has Gold Entered a New Bull Market?' shares some interesting insights on the movements in gold prices.
To keep a regular tab on the movements in gold prices and other commodities, you can read weekly market commentary from the Daily Profit Hunter team. Their weekly commentary tracks the developments in the global economy as well as equity, currency and commodity markets.
Stocks in the banking space are trading on a mixed note with DCB Bank and Karnataka Bank leading the gains. As per a leading financial daily, ICICI Bank has signed a Memorandum of Understanding (MoU) to establish a strategic partnership with the New Development Bank (NDB). NDB is a multilateral development bank established by the BRICS states namely Brazil, Russia, India, China and South Africa.
As per the terms of MoU, the two banks will consider each other as 'preferred' partners and will harness their respective resource advantages and professional expertise. By doing this, they will build a long-term, stable and mutually beneficial relationship in the areas of bond issuances, co-financing, treasury management and human resources.
Further, the two banks will also leverage a mutually beneficial partnership in other areas of operations such as treasury risk management, account and cash management services and human resource development.
As for NDB, the partnership will aid the bank in exploring bond issuance opportunities in the Indian and international bond markets, particularly Rupee-denominated bonds. Presently the stock of ICICI Bank is trading up by 0.5%.
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