Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Broad based buying caps the day
Tue, 14 Dec Closing

Buying activity intensified during closing hours as the indices tested new intraday highs. While the markets did come off a bit during dying minutes, gains notched up during the earlier hours ensured that indices ended on a firm footing today. The BSE Sensex closed with gains in the region of around 110 points whereas NSE Nifty gained around 40 points (up 0.6%) each. BSE Midcap and small cap indices also performed well, ending higher by around 1.5% each. Two stocks gained for every one that declined on the Sensex today.

Most Asian markets also closed strong today whereas Europe is trading mostly weak currently. The rupee was trading at close to Rs 45 to the dollar at the time of writing.

If the behaviour of the broader market in the past few trading sessions to go by is any indication, it appears as if it is looking for some direction. Just as it was being felt that the recent spate of scams would take the markets much lower, investor sentiment seems to have recovered pretty quickly and now that episode seems to be well behind us. To the long term investor though, it helped answer a very pertinent question. No matter how good the business prospects, if the management quality is not upto the mark, then sooner or later, one may well end up paying a heavy price. Thus, it is very important that one looks for only those businesses where the management has the interest of the minority shareholders close to its heart.

PSU majors like NTPC, SAIL and Coal India witnessed buying activity today and closed with small gains. As per a leading daily, International Coal Ventures Ltd (ICVL), a company floated by these behemoths along with a couple of other PSUs is likely to bid for Australia’s Riversdale mining. As per the top head honcho of one of the five companies, since Riversdale is a big asset, standalone bidding by any of these companies is not financially feasible and hence the decision to go in for bidding through ICVL. It should be noted that ICVL has an authorised capital of over US$ 2 billion. It isn’t that Riversdale already does not have an Indian owner. Tata Steel, India’s largest steel company is the second largest shareholder with a 24% stake. If ICVL does manage to put in its bid, it will compete against the likes of Rio Tinto that has already put in an informal US$ 3.5 bn bid for acquiring close to 50% stake in the company. Tata Steel though is in no mood to sell its stake in the firm. Apart from coking coal, Riversdale properties are expected to churn out thermal coal too, an important ingredient in power plants and the one that can be used by power producer NTPC.

If you thought a deal like Abbott and Piramal Healthcare is merely a flash in the pan, the latest acquisition by Reckitt Benckiser of the unlisted Paras Pharma may help you put things in perspective. It is becoming increasingly clear that multinationals want a pie of fast growing emerging markets like India and are not averse to paying a very steep price for the same. As per reports, Reckitt has shelled out more than US$ 700 m for Ahmadabad based Paras Pharma, valuing the company at a whopping 30 times EBITDA. The business fundamentals of Paras Pharma would no doubt be good but to the pay the kind of money that Reckitt has forked out is certainly not our idea of a value deal. It could take the company years to make good on its investment.

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


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Broad based buying caps the day". Click here!

  

Stock Market Updates

DEEPAK NITRITE Share Price Up by 13%; BSE 500 Index Up 1.4% (Today's Market)

Mar 1, 2021 03:10 PM

DEEPAK NITRITE share price is trading up by 13% and its current market price is Rs 1,553. The BSE 500 is up by 1.4%. The top gainers in the BSE 500 Index are DEEPAK NITRITE (up 12.8%) and JUST DIAL (up 14.2%). The top losers are BAJAJ HOLDINGS & INVESTMENT and CADILA HEALTHCARE .

HIMADRI SPECIALITY CHEMICAL Share Price Down by 11%; BSE 500 Index Up 1.4% (Today's Market)

Mar 1, 2021 03:08 PM

HIMADRI SPECIALITY CHEMICAL share price is trading down by 11% and its current market price is Rs 55. The BSE 500 is up by 1.4%. The top gainers in the BSE 500 Index are RCF (up 20.0%) and MMTC (up 20.0%). The top losers is HIMADRI SPECIALITY CHEMICAL (down 11.3%).

TV18 BROADCAST Share Price Up by 13%; BSE 500 Index Up 1.4% (Today's Market)

Mar 1, 2021 02:52 PM

TV18 BROADCAST share price is trading up by 13% and its current market price is Rs 33. The BSE 500 is up by 1.4%. The top gainers in the BSE 500 Index are TV18 BROADCAST (up 12.7%) and JUST DIAL (up 13.1%). The top losers are SHILPA MEDICARE and SOBHA .

RITES Share Price Up by 7%; BSE CAPITAL GOODS Index Up 1.5% (Today's Market)

Mar 1, 2021 02:52 PM

RITES share price is trading up by 7% and its current market price is Rs 263. The BSE CAPITAL GOODS is up by 1.5%. The top gainers in the BSE CAPITAL GOODS Index are RITES (up 6.7%) and GRINDWELL NORTON (up 5.8%). The top losers are SADBHAV ENGINEERING (down 0.1%) and HINDUSTAN AERO. (down 0.2%).

MRPL Share Price Up by 9%; BSE OIL & GAS Index Up 1.9% (Today's Market)

Mar 1, 2021 02:52 PM

MRPL share price is trading up by 9% and its current market price is Rs 45. The BSE OIL & GAS is up by 1.9%. The top gainers in the BSE OIL & GAS Index are MRPL (up 9.3%) and CASTROL INDIA (up 5.1%). The top losers is PETRONET LNG (down 1.8%).

Sensex Rallies 600 Points in Opening Trade; Power Grid & Tech Mahindra Top Gainers (Today's Market)

Mar 1, 2021 09:30 am

The BSE Sensex opened up by 620 points while the Nifty is trading higher by 165 points.

View More Indian Share Market News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps(Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021(Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla(Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

Make Rs 5,000 Per Day Trading the Market(Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Mar 1, 2021 03:36 PM

MARKET STATS