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GAIL Q1 Results, Falling Gold Prices, and Top Buzzing Stocks Today
Fri, 14 Aug Pre-Open

Indian share markets ended marginally lower for the second consecutive day yesterday.

At the closing bell yesterday, the BSE Sensex stood lower by 59 points.

The NSE Nifty closed down by 7 points.

The BSE Mid Cap index ended the day up by 1.6%. The BSE Small Cap index ended up by 0.8%.

Sectoral indices ended on a mixed note with stocks in the healthcare sector and telecom sector witnessing selling pressure.

Consumer durables stocks, on the other hand, witnessed buying interest.

Top Stocks in Focus Today

Indigo will be among the top buzzing stocks today as private equity firm Westbridge Capital bought a 1.4% stake in InterGlobe Aviation, which runs India's biggest airline IndiGo, for Rs 5.6 billion through an open market transaction.

As per the block deal data on the BSE, Jwalamukhi Investment Holdings, an arm of Westbridge Capital, bought 5.4 million shares from Kotak Mahindra (International) Ltd at an average price of Rs 1,028 apiece. Earlier this week, the board of directors of Indigo approved raising up to Rs 40 billion through a qualified institutional placement offering.

Lemon Tree Hotels share price will also be in focus today after the company announced its debut in Dwarka, Gujarat, with the launch of the 109 key hotel - Lemon Tree Premier, Dwarka. The company stated that the hotel features 109 well-appointed rooms and suites, a multi-cuisine vegetarian coffee shop-Citrus Cafe, banquet facilities, Conference facility Spa, etc.

Market participants will also track IT stocks as the US announced certain exemptions in H-1B and L-1 travel ban for those continuing employment with the same employer. Reports state that this move is likely to help Indian IT professionals.

GAIL Reports 56% YoY Fall in Q1 Net Profits

GAIL (India) reported a 56.43% year-on-year (YoY) fall in net profit at Rs 6.5 billion for the quarter ended June 30. The figure stood at Rs 15 billion in the corresponding quarter last year.

Consolidated revenue of the company declined 34% YoY to Rs 121.8 billion. The company said that performance was impacted due to nationwide lockdown. However, it added that the same is expected to reach to normal levels during upcoming period in FY 2020-21.

Segment wise, revenue from natural gas marketing declined 37.83% YoY to Rs 116.3 billion.

Likewise, topline from transmission services and city gas slipped 12% and 35% YoY, respectively.

However, revenue from petrochemicals increased 9.79% YoY to Rs 12.2 billion.

eClerx Services Shares Hit Upper Circuit on Strong Q1 Numbers

Shares of Eclerx Services were locked in the 20% upper circuit band yesterday after the company reported steady numbers for the quarter ended June 2020 (Q1FY21).

The firm posted a 30% year-on-year (YoY) rise in its consolidated net profit at Rs 518 million against Rs 398 million in the corresponding quarter of the previous fiscal.

Operating revenue for the quarter ended June 30, 2020 was Rs 3,366 million, down 5.1% YoY against Rs 3,547 million in the corresponding period last year.

In US dollar terms, operating revenue decreased by 11.9% to US$ 44.8 million as compared to US$ 50.9 million in the corresponding period last year.

Total revenue including other income for the period came in at Rs 3,481 million, down 4.1% YoY.

Earnings before interest and taxes (EBIT) for the quarter under review increased by 35.5% YoY.

Gold Prices See Marginal Fall

Gold prices witnessed marginal fall yesterday.

On MCX, gold futures prices were trading down by 0.3% to Rs 52,080 per 10 grams at closing market hours yesterday.

In global markets, gold held above US$ 1,900 an ounce following wild swings as investors weighed the outlook for the metal's record-setting rally, tracking moves in bond yields, a weaker dollar, as well as an uptick in risk appetite.

Spot bullion steadied, while futures dropped after US stocks briefly surpassed their all-time closing high, curbing demand for safe haven assets.

Gold had tumbled on Tuesday this week, then swung in a wide arc on Wednesday, as last-week's rally likely spurred some technical selling and profit-taking.

Even with the correction in prices, gold and silver remain among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

Last week, gold had hit a record high of Rs 56,191 in Indian markets amid a global rally.

So, is it time to book profits in gold and silver?

In this video below, India's no. 1 trader, Vijay Bhambwani tells what he thinks you should do with your bullion holdings.

Tune in here:

To know more about gold, just visit our Youtube Playlist on gold investing.

And 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!

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