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Sensex Opens Flat; Banking and Metal Stocks Under Pressure
Wed, 30 Sep 09:30 am

Asian stock markets are trading on a mixed note ahead of the first US presidential debate, as financial markets looked to take a measure of both candidates.

The Nikkei is down 0.2%, while the Hang Seng is up 1.3%.

In the Wall Street, major indices slipped overnight as investors awaited to take a measure of Democrat Joe Biden and US President Donald Trump in the first US presidential debate. The Dow and S&P 500 fell 0.5% and the Nasdaq Composite dropped 0.3%.

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

The BSE Sensex is trading down by 33 points.

The NSE Nifty is trading lower by 9 points.

ONGC and Sun Pharma are among the top gainers today. IndusInd Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.4%.

The BSE Small Cap index is trading higher by 0.3%.

Sectoral indices are trading mixed with stocks in the healthcare sector witnessing maximum buying interest.

Banking stocks, on the other hand, are trading in red.

The rupee is trading at 73.77 against the US$.

Gold prices are trading down by 0.1% at Rs 50,681 per 10 grams.

Speaking of stock markets, in our latest episode of Investor Hour Podcast, India's #1 trader Vijay Bhambwani joins Rahul Goel to talk about his views on stock market, currencies, his trading strategy, and more...

In the podcast, Vijay talks about the volatility in the benchmark indices. Instead of trading for short-term profits of 5-10%, he thinks it's a far better idea to wait for the big profit trades. These are longer-term trades which can pay out anywhere between 50-80%.

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In news from the metal sector, India Ratings and Research (Ind-Ra) has maintained a negative outlook on the steel sector and expects an operational recovery to pre-Covid-19 levels in second half of FY22, though large players could recover earlier.

The rating agency said that while domestic demand did show initial signs of recovery in mid-Q2FY21 with the unleashing of pent-up demand, its sustenance would depend on a macroeconomic pick-up from timely government reforms and stimulus to push up domestic consumption and investment activity.

It added that government's increased investments in infrastructure, especially frontloading of the Rs 100 trillion infrastructure investment plan could be a key steel demand growth driver.

The rating agency believes that iron ore prices could increase further with only five out of the 19 Odisha iron ore mines, which were auctioned in March 2020, being operational as on date.

In other news, the dividend payout of Rs 45 billion that Vedanta received from Hindustan Zinc in May is yet to be passed on to the company's shareholders.

Corporate governance experts said by holding back the dividend to shareholders despite having a dividend distribution policy could indirectly lead to a reduction in the company's delisting price.

Vedanta's delisting process will open on October 5.

The company's dividend distribution policy says normal dividend received from Hindustan Zinc shall be passed on to its shareholders in entirety.

Vedanta in its annual report has cited the need for financial flexibility at the group as the reason for holding back the dividend.

Vedanta owns almost 65% stake in Hindustan Zinc.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of the metal sector, note that metal stocks have rebounded sharply from their March lows, with revival in both domestic and global demand.

Have a look at the chart below which shows returns of the major sectoral indices since 23 March 2020.


As per Apurva Sheth, the secret behind the rally in metals is nothing else but its greed and fear cycle. The greed phase in metal stocks will last till September 2021.

As per Apurva, the sector has a lot more ground to cover up in a short span of time.

He has been sharing with you such greed and fear cycles in stocks, currencies, and even commodities.

How metal stocks perform in the coming months remains to be seen.

Moving on to stock specific news...

Va Tech Wabag is among the top buzzing stocks today.

Rekha Rakesh Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala, is going to invest Rs 800 million in VA Tech Wabag, the Indian multinational player in the water treatment industry.

The company has decided to raise Rs 1.2 billion via preferential issue, and on September 29, finalised the allotment of equity shares on a preferential basis.

The company's board approved the allotment of 5 million shares to Rekha Rakesh Jhunjhunwala, 1.5 million shares to Basera Home Finance, and 1 million shares to Sushma Anand Jain and Anand Jaikumar Jain.

With this, Jhunjhunwala will become the major individual shareholder in the company.

Va Tech Wabag share price has opened the day up by 5%.

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


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