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Sensex Opens Strong; Realty & Automobile Stocks Lead
Mon, 19 Nov 09:30 am

Asian stock markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.4% while the Hang Seng is up 0.1%. The Shanghai Composite is trading up by 0.2%. The S&P 500 and Dow Industrials rose on Friday after President Donald Trump said the United States may not have to impose further tariffs on Chinese goods but falling shares of Nvidia Corp dragged down the Nasdaq.

Back home, India share markets have opened the day on a firm note. The BSE Sensex is trading up by 192 points while the NSE Nifty is trading up by 43 points. The BSE Mid Cap index opened up by 0.4% while BSE Small Cap index opened up by 0.2%.

Barring energy stocks & PSU stocks, all the sectoral indices have opened the day in green with realty stocks and automobile stocks witnessing maximum buying interest.

The rupee is currently trading at Rs 71.90 against the US$.

The Indian currency on 16 November strengthened further by 4 paise to close at a fresh two-month high 71.93 against the US currency despite a rebound in oil prices and a stronger dollar.

Crude oil prices falling below the US$70 per barrel mark and forex inflows have boosted the rupee sentiment as the domestic currency posted gains of 57 paise or 0.8% this week to touch two-month high levels.

Increased selling of the US currency by exporters and banks and gains in equity markets aided the rupee to post gains for the fourth day.

The rupee opened higher at 71.94 per dollar against the last close of 71.97 per dollar and later touched a high of 71.71 per dollar on forex inflows and positive export data.

Speaking of macroeconomic cues and stock markets, there are some interesting trends about how the global markets performed last year and this year.

Countries heavily dependent on crude oil exports performed poorly in 2017. However, with crude oil prices in a rising trend this year, they're among the best-performing markets.

India, a country that relies heavily on crude oil imports was among the best-performing markets when oil prices were weak. However, the tide turned this year as our oil import bill has witnessed a significant jump.

The BSE Sensex closed at 34,057 at the end of 2017. It gained 14% to hit a life-time high of 38,897 on 28 August 2018. Thereafter, the Sensex has been in correction mode through September and October. However, after hitting a year-to-date low of 33,349 in the last week of October, the Sensex has reclaimed the 35k level.

While the Sensex has shed most of its gains in 2018, it still doesn't appear so bad in Indian rupee terms. But for foreign investors, the fall in the Sensex has been worse, because they're also exposed the currency risk.

The below chart shows the difference between the performance of the Sensex and the Dollex 30 index (Sensex in US dollar terms).

Dollex-30 Is Down 10% in 2018


You can see how the trend between the Sensex and Dollex-30 diverged since February 2018.

The Dollex-30 index has declined 10% in 2018 so far.

No wonder that foreign investors have been dumping Indian stocks. Since April 2018, foreign investors have sold equities worth Rs 565.5 billion. What is worth noting is that Rs 276.2 billion worth of equities were sold in the month of October alone.

Moving on to the news from the engineering sector. Siemens on Sunday reported more than 55% decline in standalone profit to Rs 2.7 billion for the quarter ended on 30 September 2018.

The company had reported a net profit of Rs 6.2 billion during the same period a year ago, aided by an exceptional gain of Rs 5.6 billion.

Total Income of the company rose to Rs 40.2 billion in July-September 2018 from Rs 32 billion in the year-ago-quarter.

Its expenses during the quarter under review were at Rs 35.8 billion, higher from Rs 28.8 billion in the September quarter of 2017.

For the fourth quarter of financial year 2018, new orders grew by 38.1% to Rs 37.2 billion compared to Rs 26.9 billion in the fourth quarter of financial year 2017. The revenue reported for the quarter is Rs 38 billion, 24.9% growth compared to fourth quarter of financial year 2017.

To know more about the company, you can access to Siemens' Q1FY19 result analysis and Siemens' Stock Analysis on our website.

Siemens' share price opened the day down by 2.6%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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