Sensex Opens Strong; Consumer Durables and IT Stocks Gain

Mon, 14 Sep 09:30 am

   Previous Close   

   Pre-Open   

   SGX Nifty   

   12:30 pm   

   Closing   

Asian stock markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.6% while the Hang Seng is up 0.7%. The Nikkei 225 is trading up by 0.7%.

Among global indices, the Nasdaq slid and the S&P 500 closed little with change on September 11 as early gains in technology and growth names faded, with each of the three major Wall Street averages posting their second straight weekly decline.

Back home, Indian share markets have opened the day on a higher note.

The BSE Sensex is trading up by 322 points.

The NSE Nifty is trading higher by 82 points.

Meanwhile, the BSE Mid Cap index has opened up by 1%.

BSE Small Cap index is also trading higher by 1.6%.

All sectoral indices are trading in green with BSE Consumer Durables Index witnessing buying interest.

Moving on, the rupee is currently trading at 73.48 against the US$.

Gold prices are currently trading down by 0.9% at Rs 51,319.

Gold prices are flat today as investors maintained a cautious approach ahead of US Federal Reserve's monetary policy decision this week and as optimism around a potential COVID-19 vaccine lifted appetite for riskier assets.

Spot gold was mostly unchanged at US$1,941.1 per ounce. US gold futures were also steady at US$1,948.3.

Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

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

Moving on to the stock specific news...

Bhel is among the top buzzing stocks after it reported consolidated net loss widened to Rs 8.9 billion for the quarter ended June as coronavirus-induced lockdown had an adverse impact on its operations.

The total income of the company stood at Rs 20.9 billion in the June quarter this year. It had posted a total income of Rs 46.7 billion in the year-ago period.

It stated that the group's operations and financial results for the quarter have been very adversely impacted by the lockdown imposed to contain the spread of Covid-19.

The operations gradually resumed with requisite precautions during the quarter with limited availability of workforce and disrupted supply chain.

Bhel share price opened the day down by 2.2%.

In another development, the markets regulator clarified that multi-cap schemes need not necessarily churn their portfolios by selling largecap stocks or buying smallcaps in multicap schemes to meet the new norms.

It can also exercise options such as merging schemes with largecap funds, re-positioning them as large and midcap schemes or facilitating unitholders' switch to another scheme.

The market regulator said that fund houses can use these options among other things and also added that it will examine if any proposals are submitted by the industry to meet the desired objective of true-to-label and appropriate benchmarking.

Here's what Richa Agarwal, editor of our smallcap recommendation service Hidden Treasure, has to say about the above developments...

• In 2017, the market regulator came up with categorisation and rationalisation norms for mutual funds that led to massive outflow of funds from smallcap space.
  
  Even fundamentally strong stocks in smallcaps were penalized because of regulation, that led to sharp correction in smallcaps and widening of valuation gap between large caps and smallcaps.
  
  At present, multicap funds' allocation to smallcaps is way below the suggested 25% limit. In most cases, it is well below single digits. So, these were hardly multicap funds, just mis-sold to investors with that impression. The decision on Friday for multicap funds is likely to bridge the gap between smallcaps and largecaps.
  
  That said, the long -term beneficiaries of this move will not be just any smallcap, but the ones with higher liquidity, strong balance sheets, sustainable business models and growth prospects and that are run by managements with strong reputations. I believe the move will lead to strong valuation gap within the smallcap space - with quality and liquid smallcaps surging higher.
  
  There are some concerns that this could lead to redemptions and launch of lesser multicap schemes in future, thus hurting smallcaps in the long term. I believe it's too early to come to such conclusions. There are smallcaps with huge potential to scale up and for rerating. And most largecaps don't deserve a valuation that they are trading at.
  
  That said, if one is buying smallcaps just hoping for a rally without doing a check on fundamentals and valuations, I think it would be detrimental for long term wealth. The decision on Friday for multicap funds, is likely to bring more transparency in the industry.
  
  Post Friday's announcement, the regulator has issued clarification that in order to comply, apart from rebalancing, AMCs can facilitate a switch in the scheme for the unit holders. They could even merge existing multicap schemes with other schemes, or convert them to large cap cum midcap scheme.
  
  Given this optionality, one should not consider investing in smallcaps in hope of a regulation driven rally. The only way to get rich in smallcaps is to be very selective about fundamentals, valuations and management quality. There are smallcaps with huge potential to scale up and for rerating. With right approach and allocation, there is a great scope of building lasting wealth in the smallcap space.

And here's what Tanushree Banerjee, editor of our safe stock recommendation service StockSelect, has to say about this development:

• The 25-25-25 allocation directive for multicap funds does not seem to be an 'all weather' solution. Funds will find it rather difficult to stick to this allocation as and when smallcaps get too expensive or too risky. Meanwhile, this directive will lead to a correction in select bluechips and a rally in mid and smallcaps in the near term. However, this trend will be temporary. Eventually, smart money will move to stocks that offer returns with reasonable degree of safety.

How this pans out remains to be seen. We will keep you updated on all the news from this space. Stay tuned.

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

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