Sensex Opens on a Positive Note; ONGC Surges on Higher Crude Oil Prices

Tue, 7 Nov 09:30 am

   Previous Close   

   11:30 am   

   01:30 pm   

   Closing   

Asian stock markets are higher today tracking positive global cues. The Shanghai Composite is up 0.45% while the Hang Seng is up 0.97%. The Nikkei 225 is trading up by 0.82%. US stocks climbed to record highs on Monday, helped by optimism about merger activity and as investors bet that a Republican plan to cut corporate taxes would bolster earnings.

Back home, India share markets have opened the day on a firm note. The BSE Sensex is trading higher by 91 points while the NSE Nifty is trading higher by 24 points. The BSE Mid Cap index and BSE Small Cap index both opened up by 0.5%.

One shall note that, the BSE Small Cap Index has returned 21.7% in FY18 compared to 12.5% by BSE 100 and 11.7% by the Sensex. Expectedly, valuations of certain Small cap companies have gone through the roof.

Small Caps - Outperformers in Current Financial Year

Traditionally, investors held onto their 'safe' stocks, i.e. the Tata's, Maruti's, TCS, Infosys... and held on to them for life. These large caps provided a certain sense of comfort, reliability even during tough times for the market.

But if the data in FY18 is anything to go by, there has been a marked change in investing patterns. Small caps have comfortably outperformed the Large caps.

As per Tanushree Banerjee, Co-head of Research, it is important to understand the highly volatile nature of these stocks. Here's an excerpt of what she wrote in the recent edition of The 5 Minute WrapUp:

• "While there, undoubtedly, lies hidden opportunities in the small cap space, it is important to focus on fundamentals of these stocks. Next, assess if they have the potential to move on to the 'Safe stock' category in the future."

At Equitymaster, our approach of selecting safe stocks can comfortably turn few of them into multibbaggers in few years. Click here to know everything that you need to know right now about safe stocks...

Barring consumer durables stocks, all sectoral indices have opened the day in green with capital goods sector and power sector leading the gains. The rupee is trading at 64.73 to the US$.

ONGC share price gains 2.6% after an increase of global crude oil prices. Brent crude oil futures climbed US$ 64 per barrel.

Fertiliser stocks opened the day on a mixed note with Tata Chemicals and Coromandel International being the most active stocks in this space. As per an article in a leading financial daily, Tata Chemicals Ltd. will sell its phosphatic fertiliser business in a slump sale to IRC Agrochemicals Pvt. Ltd. for Rs 3.75 billion.

Reportedly, the transaction will involve transfer of Tata Chemicals' Haldia Plant, the bulk and non-bulk fertiliser trading businesses along with immovable and movable assets, working capital and product brands.

IRC Agrochemicals is a wholly-owned subsidiary of Netherlands' Indorama Holdings BV.

The deal comes at a time when Tata Chemicals is working to move out of the unprofitable and costly fertilizer business, further bogged down by government subsidies.

In August, Tata Chemicals had sold its urea business to Yara Fertilisers for Rs 26.7 billion.

Tata Chemicals, meanwhile, has been increasing investments and focus on its consumer business which includes Tata Salt, and spices and pulses under the Tata Sampann brand.

Tata Chemicals share price opened the day up by 1.1%.

Moving on to the news from IPO space. HDFC Standard Life Insurance Company will open its Rs 87-billion initial public offering for subscription from today, with a price band of Rs 275-290 per share.

It raised Rs 23.2 billion from anchor investors through allocation of 80.7 million equity shares at Rs 290 per equity share (upper end of the Price Band).

HDFC Life is the first private life insurance company to register in India and was established in 2000 as a joint venture between HDFC Limited and Standard Life Aberdeen plc through its wholly owned subsidiary, Standard Life Mauritius.

Being a life insurance player, HDFC Life has huge potential for growth as the Indian insurance market is underpenetrated.

But do the company's fundamentals justify the price it is asking for in the primary market? We have released an IPO note on HDFC Life, you can access it here (requires subscription).

Meanwhile, Khadim India's initial public offer was subscribed 1.9 times on the closing day of bidding on Monday.

The Rs 5.4-billion IPO received bids for 9.7 million shares against the total issue size of 5.1 million shares.

To know more about the company, you can read our IPO note for the above company. You can access the same in our IPO section.

Also, to learn how to navigate the treacherous world of IPOs, do read our special report on finding money-spinning IPOs.

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