Sensex Trades Over 200 Points Lower; Dow Futures Trade Flat

Wed, 25 Nov 12:30 pm | Ayesha Shetty, TM Team

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Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 235 points, down 0.5% at 44,288 levels.

Meanwhile, the NSE Nifty is trading down by 63 points.

ONGC and GAIL are among the top gainers today. Eicher Motors and Asian Paints are among the top losers today.

The BSE Mid Cap index is trading down by 1%.

The BSE Small Cap index is trading down by 0.7%

On the sectoral front, stocks from the power sector are witnessing most of the selling pressure.

On the other hand, stocks from the energy sector are witnessing most of the buying interest.

US stock futures are trading mixed today.

Nasdaq Futures are trading up by 35 points (up 0.3%) while Dow Futures are trading down by 2 points (flat).

The rupee is trading at 73.96 against the US$.

Gold prices are trading down by 0.2% at Rs 48,500 per 10 grams.

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In global markets, gold prices were muted today, supported by a weaker dollar. A strong appetite for riskier assets kept bullion near a four-month low.

Gold prices continued to drift lower in domestic markets for the third day in a row amid a strong risk-on rally in equity markets. On MCX, gold futures fell 0.2% to Rs 48,485 per 10 grams.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about how he knew when to turn bullish on the market, in his latest video for Fast Profits Daily.

In the video below, Vijay shares his unconventional 360 degree approach that told him the markets were looking positive in May when everyone said they were going to crash like they did in March.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is JSW Steel.

JSW Steel is offering differential pricing as part of its personalised services for micro, small and medium enterprises (MSMEs), marking a trend as the industry ups its bills.

The company said personalization ensures quality and availability. The right quality of product and just-in-time supplies along with a preferential international pricing will enable the MSMEs to compete in the international market.

JSW has launched a site where MSMEs can register. As MSMEs account for 22-25% of the company's supplies, a proper supply chain and pricing advantage will help it compete with international players in the export market.

Typically, MSMEs buy from the local dealer at local market prices.

The increase in steel prices since August has been a bone of contention for user industries. The sharp rise in steel prices has dealt a crippling impact on the country's engineering exports which are facing the most challenging global markets in the face of Covid-19 pandemic in several major economies.

However, the prices are a reflection of global steel prices. Pricing of steel today is also affected by iron ore prices. Internationally, iron ore prices are high and in the domestic market too prices have moved up significantly over the last few months.

Pricing of iron ore in the domestic market has remained at elevated levels, also due to concerns around availability. Around 19 mines were auctioned in Odisha of which five are operational and the balance are yet to go onstream.

The government too is looking at ways to address problems relating to availability of iron ore. Policy intervention in iron ore mines could avoid disruption of the supply chain.

We will keep you updated on all the news from this space. Stay tuned.

At the time of writing, JSW Steel share price was trading up by 0.3% on the BSE.

Moving on to news from the indian pharma sector...

Study Shows Glenmark Pharma's Favipiravir Cuts Covid-19 Treatment Time

A recently published data on Glenmark Pharmaceuticals' Favipiravir as treatment for mild to moderate Covid-19 demonstrated significant improvement in time to clinical cure.

The oral antiviral medication Favipiravir, that prevents the replication phase of the virus life-cycle, leads to significant improvement in clinical cure in patients with mild to moderate Covid-19.

These findings were observed in a randomized, controlled Phase 3 clinical study conducted by Glenmark Pharmaceuticals, and the results are now published online in The International Journal of Infectious Diseases (IJID).

The Phase 3 study with antiviral drug Favipiravir, brand name FabiFlu, was conducted in 150 patients as part of a randomized, open label, multicenter, Phase 3 study. Favipiravir was found to provide multiple treatment benefits, demonstrated by faster time to clinical cure, and significantly delayed the need for supportive oxygen therapy.

In June 2020, Glenmark received manufacturing and marketing approval from India's drug regulator for Favipiravir (FabiFlu), making it the first oral approved medication in India for the treatment of mild to moderate Covid-19.

The manufacturing and marketing approval was granted as part of an accelerated approval process, considering the emergency situation of the Covid-19 outbreak in India.

The approval's restricted use entails responsible medication use where every patient must have signed informed consent before treatment initiation.

The efficacy of the treatment on a larger scale remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of the stock markets, a right investing process can help you win in the long term. It might offer some unexpected and undesirable results in the short term but lets you fare well when you average the outcomes.

According to Richa Agarwal, Senior Research Analyst at Equitymaster, any investment process should not be judged based on individual outcomes. Instead, it should have stood the test of the time.

Her smallcap service Hidden Treasure has had its fair share of failures. But sticking to a disciplined process meant that Hidden Treasure's internal rate of return (IRR) increased to 24.38% since inception. This compares favorably to the IRRs of 9.6% for the Sensex, and 8.8% for the smallcap index in the same period (February 2008 - June 2020) as can be seen in the chart below.

The service's performance did suffer in the short term after the 2018 crash in smallcaps. However, the long term track record and the post Covid rebound underscores the strength of stock picking process.

If you are interested in becoming a Hidden Treasure subscriber, here's where you can sign up.

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!

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