Sensex Trades in Red; IT & Metal Stocks Drag

Wed, 21 Nov 09:30 am

   Previous Close   

   Pre-Open   

   12:30 pm   

   Closing   

Asian stock markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.7% while the Hang Seng is down 0.2%. The Shanghai Composite is trading down by 0.1%. US stocks dropped, and the Nasdaq fell 1.7% on Tuesday.

Back home, India share markets have opened the day on a negative note. The BSE Sensex is trading down by 101 points while the NSE Nifty is trading down by 20 points. The BSE Mid Cap index opened up by 0.5% while BSE Small Cap index opened up by 0.3%.

Sectoral indices have opened the day on a mixed note with oil & gas stocks and healthcare stocks witnessing maximum buying interest. While metal stocks and IT stocks have opened the day in red.

The rupee is currently trading at Rs 71.40 against the US$.

In the news from the pharma space, Dr Reddy's share price is witnessing buying interest today.

Reportedly, a court ruling allowed the company to sell a generic of Indivior Plc's opioid treatment drug Suboxone in the US.

The US court appeals for the Federal Circuit which were set aside yesterday blocked Dr. Reddy's from selling the generic in the country. The market comprising drugs that treat opioid abuse in the US during the past 12 months is worth $2.8 billion.

Dr Reddy's share price is trading up by 7.5%.

You can also read Dr Reddy's Q2FY19 result and Dr Reddy's annual report on our website.

Moving on to the news from the commodity space, oil prices tumbled more than 6% on Tuesday in heavy trading volume, with US crude diving to its lowest level in more than a year, caught in a broader Wall Street selloff fed by mounting concerns about a slowdown in global economic growth.

Speaking of crude oil, India's crude oil production was lower by 4.2% in September 2018 as compared to last year, as can be seen from the chart below.

The worrying factor is this was the lowest production this year.

Here's what Tanushree Banerjee wrote about it in one of the recent editions of The 5 Minute WrapUp...

• Comparing domestic production with the crude oil processed by refineries gives an idea of the demand supply gap. Low domestic production as compared to the demand for crude oil places a huge burden on India's import bill.
  
  Rising crude oil prices could have severe implications. Rising inflation. Rising interest rates. Pressure on the government to cut excise duty, thereby impacting its revenues.
  
  We have seen some of this play out. With elections around the corner, expect a lot of subsidies on fuel prices. This is bound to worsen India's fiscal deficit further.

It would be interesting to see how this pans out. Meanwhile, we will keep you updated on all the developments from this space.

Sarvajeet offers an interesting insight on an infinite return business.

Here's what he wrote in a recent edition of The 5 Minute Wrap Up...

• Talking about moat businesses, I believe the moat should be reflected in the financials.
  
  Keeping things simple, a business with competitive advantage, should earn above average margins. It should have an asset and working capital light business model.
  
  The low investment in assets and working capital should be reflected in strong cash flows. The balance sheet should be strong with minimum or no debt.
  
  Growth in profits should surpass the growth in sales.
  
  The below chart shows the last five-year performance of the company we are about to recommend in Smart Money Secrets in the coming week.
  
  

  Financials Like These Are Seen Only in Duopoly Markets

  

  A company operating in a duopoly market with limited competition fares very well on key financial metrics.
  
  As we can see in the chart, this company has grown its profits faster than its sales.
  
  It earns margins in north of 50% (a very rare feat to achieve), and pays a dividend that's more than 35% of its profits.
  
  It's asset light with no big capex requirements to grow. In fact, it barely invests any money at all in working capital (see the cash conversion cycle in the chart).
  
  The big question is - are these financials sustainable?
  
  If yes, at what price should you consider buying the stock?
  
  Find out soon...

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