X
Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
After opening the day on a positive note, the Indian stock markets have continued to trade in the green. Sectoral indices are trading on a positive note with stocks from the IT, auto and metal sectors leading the gains.
The BSE Sensex is trading up 175 points (up 0.6%) and the NSE Nifty is trading up 57 points (up 0.7%). The BSE Mid Cap index is trading up by 1.1%, while the BSE Small Cap index is trading up 0.9%. The rupee is trading at 66.73 to the US$.
As per a leading financial daily, the government has realised Rs 9 billion through the fourth tranche of its Sovereign Gold Bond scheme. This is recorded as the highest sum realised so far. The previous highest was recorded at Rs 7.5 billion, which was realised in the second tranche, when the issue price stood at Rs 2,600/gram of gold.
The latest subscription mobilized amounts through over 1.95 lakh applications and represented around 2.95 tonnes of gold. The issue price for this was fixed at Rs 3,119/gram of gold.
It is said that these numbers are likely to go up as receiving offices are keying in data for huge number of applications on the last day. The top five receiving offices were the State Bank of India (SBI), NSE, Bank of India (BOI), ICICI Bank, and HDFC Bank. The total subscriptions in the first three tranches was Rs 13 billion corresponding to 4.9 tonnes of gold.
The SGB scheme was introduce in the Union Budget 2015-16 as an alternative to keeping physical gold. The aim of this scheme was to reduce demand for physical gold and in process reduce India's current account deficit (CAD). To improve attractiveness of the scheme, new features were introduced in the latest instalment, where the minimum subscription limit was brought down to 1 gram from 2 grams earlier.
As far as our views are concerned, the SGB scheme is a worthwhile proposition while taking exposure to gold. However, what one must also keep in mind is that there is no point having an over exposure to such schemes. One shall look at gold as a portfolio diversifier and a monetary asset (rather than a mere commodity), which can help in reducing risks to the overall portfolio with its trait of being a store of value in times of uncertainties. One of our editions of The 5 Minute WrapUp has shared some insights on the government's various gold schemes.
Also, while we are on the topic of gold, Asad Dossani, editor, Profit Hunter, has penned an article that illustrates how one can make money trading gold.
Moving on to global news, data released during the end of last week showed economy growth for the eurozone halved in the second quarter of 2016. GDP rose 0.3% between April and June. This was in line with expectations but below 0.6% growth witnessed in the first quarter.
Eurozone inflation rose 0.2% in July from 0.1% in June on the back of higher food, alcohol, and tobacco prices. The 19-nation single currency, however, moved away from deflation. France, the eurozone's second-largest economy, saw no growth after expanding 0.7% in the first quarter. Bill Bonner, writing recently from France, explains why that country is a mess.
The above figures are the first to be released since Brexit. The data pointed out that Brexit indeed had a far worse impact on the entire economy. If there is still room for further pain remains to be seen. In its latest update, the International Monetary Fund (IMF) slashed the UK's growth forecasts and stated that Brexit has damaged the British economy's short-term prospects and thrown a spanner in the works of the global recovery.
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
|
| |
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | Advertise | About | Sitemap
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Indian Indices Continue Uptrend". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!