Of Mutual Funds Off Loading Small Caps, Trade Wars and Key Stocks in Action Today

Mon, 6 Aug Pre-Open

   Previous Close   

   09:30 am   

   12:30 pm   

   Closing   

The BSE Smallcap index is down 14% since the beginning of 2018. The data analysis by a reputed organization of 1,584 stocks having a market capitalization of more than Rs 100 crore, showed that the median fall for these 1,584 stocks from their 52 week high is 34%. The magnitude of the correction is eye-popping.

This fall is partly contributed by the big mutual funds shifting their allocation to large-caps. In the quarter ended June 2018, mutual fund ownership in large-caps rose 1.2% from the levels they held in the September quarter.

Further, general elections are due next year. As smallcaps tend to be more volatile during such period, funds are reducing their risk exposure by buying more large-caps.

If the trend continues going forward, there could be more pain in the offering for smallcaps.

Trade War Intensifies as Mr Donald Trump Plans to Impose Steeper Tariff on Chinese Products

Mr Donald Trump has proposed imposing a higher tariff duty on US$ 200 billion worth of Chinese products. United States has threatened to increase tariff rates to 25% from the current 10%.

This could be bad news for domestic manufacturers in India. If at all a higher duty is imposed by the US, the Chinese would dump their production in India. Unless the Indian government imposes safeguard duties, the Indian market could be flooded with Chinese products, in-turn impacting the domestic manufacturers.

Solar Power Developers to be Negatively Impacted by Safeguard Duty on Solar Cells

The Ministry of Finance has notified imposition of a safeguard duty of 25% on solar cells. The safeguard duty of 25% will be valid till 29 July 2019. Post this date, a safeguard duty of 20% will be levied for the next six months and 15% for another six months (till 29 July 2020).

The Chinese were dumping solar cells in India at lower costs, which helped the power developers to quote lower solar tariffs. With the safeguard duty coming in, the solar cells will turn expensive in-turn increasing the expenses for the solar developers.

The increase in expenses could lead to higher solar tariffs going forward. Further, the internal rate of return (IRR) for solar developers could go for a toss, assuming that they had bided for projects without having assumed a possible imposition of safeguard duty by the government.

We had highlighted such concerns in our article two years back stating the flaws in the US$ 100 billion solar sector.

Key Stocks in Action Today

The stocks of Arvind, Adani Power, Banco India, Polaris, Parag Milk Foods are expected to be in the news today as they declare their results for the quarter ended June 2018.

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

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers