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


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

Indian Indices End on a Positive Note; Oil & Gas and IT Stocks Witness Buying
Tue, 2 Jul Closing | Monish Vora, TM Team

Indian share markets witnessed buying interest during closing hours and ended marginally higher. Gains were seen in the oil & gas sector and IT sector, while realty stocks and healthcare stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 130 points (up 0.3%) and the NSE Nifty closed higher by 45 points (up 0.4%). The BSE Mid Cap index ended the day up by 0.4%, while the BSE Small Cap index ended on a flat note.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 1.2% and the Shanghai Composite was down by 0.1%. The Nikkei 225 was up 0.1%.

The rupee was trading at 68.98 against the US$.

Speaking of the stock markets, the current pattern of the Indian stock market very closely resembles 2013.

--- Advertisement ---
Cure For Poor Investor Syndrome

Almost everyone suffers from it and chances are, you do too.

Think about it…

When was the last time you made good money in the stock market?

And by good, we mean triple digit profits…

If you have, then great – we're going to tell you how to do it again – over and over.

And if you haven't made such profits… well, then that's great too…

Because we've got just the thing for you.

It involves taking the help of some of the biggest, richest investors out there…

We call them The Thousand Crore Club…

That's because they've made hundreds and thousands of crores in the stock market.

Now normally something like this would involve you paying them lakhs and lakhs of rupees in fees.

But we'll tell you how you can benefit from their expertise, without paying them a single shiny rupee.

Go here and we'll fill you in on the details.

Back then too, Sensex was relatively flat while mid and small caps underperformed by a huge margin.

Only this time, the divergence is larger.

How Long Will this Sensex Outperformance Last?

How Long Will this Sensex Outperformance Last?

While the 2013 correction was due to global macro issues, the correction in mid and small caps are due to factors back home.

Corporate governance issues leading to auditor exits plagued many mid and small caps in 2018. Then, we had the IL&FS impact leading to the NBFC crisis.

Will this Sensex outperformance continue?

Co-head of research, Tanushree Banerjee answers this question in one of the recent editions of The 5 Minute WrapUp. Here's an excerpt of what she wrote:

  • But when I think of safe stocks, I think long-term about the businesses rather than how the Sensex will perform.

    I think of businesses that will be a part of India's long-term growth story. I strongly believe these businesses stand to do well irrespective of the movement of the Index.

Also, Tanushree recently talked about the Rebirth of India phenomenon and how 3 specific trends are racing ahead even in these gloomy times...

You can read more on these 3 opportunities here: Defence boom, Infrastructure sector reforms and Electric Vehicle Disruption.

In the news from the finance sector, DHFL share price was in focus today. The stock of the housing finance company witnessed buying interest today after large lenders to the debt-laden firm agreed to sign an inter-creditor agreement (ICA) on July 5 and considered a resolution plan for the beleaguered firm.

Bankers to DHFL met on Monday and agreed in principle to sign an ICA which is mandatory for any revival plan according to the new framework for restructuring of stressed loans which came into effect from June 7.

Last week, the company received the Securities and Exchange Board of India's (Sebi) approval to exit its mutual fund business by selling its 50% stake to Prudential Financial.

The company had entered an agreement with Prudential Financial to divest its 50% holding in DHFL Pramerica Asset Managers (DPAMPL). Of this 17.12% is held directly and 32.88% is held by its wholly-owned subsidiary, DHFL Advisory & Investments.

It was reported last week that the mortgage lender is yet to repay Rs 2.3 billion out of the total Rs 3.8 billion of commercial paper to a dozen investors.

Earlier last month, DHFL defaulted on interest payment of Rs 8.5 billion on its non-convertible debentures, following which its credit rating was downgraded to default or 'D' by rating agencies CRISIL and ICRA.

On June 17, The Economic Times reported that the Employees' Provident Fund Organisation (EPFO) had sought details of DHFL's plans for cash generation amid mounting concerns of default. The largest domestic institutional investor in debt assets sought to redeem half of its DHFL investments exercising the 'put option', an exit route given to investors before scheduled maturities.

EPFO invested about Rs 13 billion in debt securities sold by DHFL. When EPFO made the investment in 2014-15, the company's debt was rated 'AAA' by CARE. As per rules, EPFO cannot invest in any debt securities rated below 'AA+'. But pension and insurance funds such as EPFO are not required to show mark-to-market losses.

Over the past few months, the company has sold retail loans worth Rs 300 billion via securitization. It has also sold several of its strategic retail assets, including affordable housing arm Aadhar Housing Finance, educational loan business Avanse and DHFL Pramerica Asset Managers.

In January, DHFL sold Rs 13.8 billion of wholesale loans to foreign alternative investment management fund Oaktree Capital, which buys distressed loan portfolios at a discount.

As per the data, State Bank of India (SBI) is the largest lender to DHFL with a total exposure of around Rs 100 billion.

It would be interesting to see how this pans out ahead for DHFL. Meanwhile, we will keep you updated on all the developments from this space.

In the news from the pharma space, Alembic Pharma share price was also in focus today. The stock of the company witnessed buying interest after the company said it has received approval from the US health regulator for Febuxostat tablets, used to lower high levels of uric acid in adults who have gout.

The approved product is therapeutically equivalent to the reference listed drug Uloric tablets of Takeda Pharmaceuticals USA, Inc.

Strides Pharma share price was also in focus today as the company's step-down subsidiary has signed the definitive agreements for sale of its entire Australian business to Arrow Pharmaceuticals upon receipt of all requisite approvals.

Earlier this year, Strides Pharma Science had decided to exit its investment in Arrow Pharmaceuticals for approximately Rs 19 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 "Indian Indices End on a Positive Note; Oil & Gas and IT Stocks Witness Buying". Click here!


Most Popular

Interest Rates Are Low. Buy Solid Dividend Stocks Instead(The 5 Minute Wrapup)

Aug 13, 2019

The dividends paid by these stocks are helpful when interest rates are falling.

My Top 3 Dividend Stocks to Buy Now(Profit Hunter)

Aug 19, 2019

As markets continue to rattle amid earning season, upcoming elections, volatile crude price and US China trade war, it's a great idea to add some stability to your portfolio by adding dividend stocks.

One Stock You Could Consider Buying Now and Holding Forever(The 5 Minute Wrapup)

Aug 22, 2019

If there is one company that I could recommend that is making the most of the tech disruption, this would be it.

Chandrayaan 2 Heads to the Moon and It's Good News for These Stocks(The 5 Minute Wrapup)

Aug 14, 2019

Why investors should take note of India's advantage as a low cost satellite launcher...

'Chandrayaan 2': My Top Aerospace and Defense Stock to Bet on Today(Profit Hunter)

Aug 14, 2019

This smallcap stock could help you ride the great aerospace and defense wave.


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


Aug 23, 2019 (Close)