X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
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?  

Indian Indices End Marginally Lower; Realty Stocks Witness Losses
Thu, 3 May Closing | Monish Vora, TM Team

After witnessing volatile trades during the day, Indian share markets ended their session marginally lower. Losses were largely seen in the realty sector, capital goods sector and IT sector, while metal stocks ended the day higher.

At the closing bell, the BSE Sensex stood lower by 73 points (down 0.2%) and the NSE Nifty closed lower by 38 points (down 0.4%). The BSE Mid Cap index ended the day down by 1.2%, while the BSE Small Cap index ended the day down by 0.8%.

Asian stock markets finished on a negative note as of the most recent closing prices. The Hang Seng was down 1.3% and the Nikkei stood lower by 0.2%.

The rupee was trading at 66.56 to the US$ at the time of writing.

In the news from pharma sector, Biocon share price witnessed selling pressure today on reports of US Food and Drug Administration (USFDA) observations of the company's Bangalore facility.

The company's Bangalore sterile drug product facility has got seven observations from USFDA and six observations from the European regulator.

--- Advertisement ---
Join The 'Bombay Investing Society' Today…

The Bombay Investing Society has guided over 7,000 of its members from around India towards a financially sound future for over 16 years now…

And today, you have the chance to join these 7,000 members…

Click here to do so right away…
------------------------------

Biocon share price ended the day down by 5.5% on the BSE.

Speaking of pharma stocks, did you know the BSE Healthcare Index is down 20% over the past three years? During the same period, the BSE Sensex is up 21%.

And this was a sector they called 'evergreen'.

Have Investors boarded a plane that's about to crash? Or is it just turbulence on the way to a smooth and safe landing?

Here's what we wrote about the same in one of the recent editions of The 5 Minute WrapUp:

  • It's important to understand the core issues. Regulatory problems for pharma companies have increased over the past few years. The frequency of visits as well as quality expectations have increased a lot.

    The intensity of competition has also increased. Faster approvals of drugs have led to price erosion for generic players.

    While we expect the pain to continue in the short-term, the long-term picture still looks bright.

    Stricter norms and pricing pressure will ensure only quality players remain. Companies with strong R&D facilities and quality compliant plants will have an edge over the others.

    Those are the only pharma stocks you should be looking at.

    And even among those, only three of them offer enough margin of safety today.

You can access these safe stocks here.

In other news, PC Jeweller share price was in focus today. At the closing hours, the stock of the company reversed its early losses and rose from the day's low after the management of the company termed reports of arrest of MD and CEO Balram Garg by the CBI as factually incorrect.

PC Jeweller share price ended its trading session up by 9.7% on the BSE today.

In the news from global financial markets, the US Federal Reserve left interest rates unchanged at 1.50-1.75% in its recently held monetary policy meet. While doing so, they also acknowledged that inflation is close to their target without indicating any intention to veer from their gradual path of interest-rate increases.

The central bank also signaled that the gradual path of rate hikes will stay.

Note that Fed officials have indicated that they expect a total of 3 to 4 hikes in 2018. This view was reaffirmed as the central bank said that economic conditions will warrant further gradual increases in the federal funds rate.

The Fed also mentioned that the labour market remains strengthened and economic activity is rising at a moderate rate. It also highlighted that the job gains have been strong in recent months, and the unemployment rate has stayed low.

Note that with the US economy chugging along for many months, the Fed is now gradually easing off the stimulus it provides to the economy by raising interest rates to more normal levels.

Federal Reserve Rate Hike in the Past 3 Years

How does a US interest rate hike affect Indian investors?

The instant effect is foreign money moving out of India's vaults. This means a slight correction in the share market in India, albeit temporarily.

While this might provide a good buying opportunity in long-term stocks, the main thing to look forward would be capex and earnings trends.

In the end, Indian investors are better off staying informed about the corporate earnings revival than Fed rate hikes.

It is also worthwhile to note that the Indian stock market has done relatively well during the last period of rate hikes by the US Fed.

Take 2003-2006 for example...

Between 2003 and 2006, the US Fed rate moved from 1% to 5.25%.

Despite this, the Sensex rose from 3,500 levels to more than 10,000 during the same period. This increase was supported by strong earnings growth.

So, in the long term, rate hikes (triggered by economic growth) have proved good for the Indian markets. In fact, earnings growth is at the heart of Tanushree's prediction of Sensex 100,000.

And here's a note from Profit Hunter:

The Indian benchmark indices witnessed some selling pressure during the day. Siemens India is among the worst performing stock in the market today. Let's review its chart.

After the stock topped out at 1,560 in August 2015, it traded in a downtrend. The down move halted near 1,000 level in January 2016. It bounced up to 1,350, but couldn't hold up, slipping back to the 1,000 level in November 2016.

It again rallied to 1,470 in May 2017, but the bears continued to dominate and the stock fell to 1,000 level. As you can see from the chart, the 1,000 level has acted as a good support for stock multiple times.

Today, it slipped nearly 12% to hit an intra-day low of 993 and recovered half of its losses to close the session 6% down. The volumes for the day were quite strong.

So can the stock rally up again, after bouncing from the 1,000 support level, or will it show up different?

Siemens Bounced Up From 1,000 Level
Siemens Bounced Up From 1,000 Level 

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

Equitymaster requests your view! Post a comment on "Indian Indices End Marginally Lower; Realty Stocks Witness Losses". Click here!

  

Stock Market Updates

Top 5 Mid-Cap Gainers Today; SAIL Leads the Pack (Today's Market)

Mar 18, 2019 03:44 PM

Here's a list of 5 stocks that gained the most in the BSE Mid-Cap Index today. It also includes information on BSE Mid-Cap index and the broader benchmark indices.

J&K BANK Surges by 5%; BSE BANKEX Index Up 1.1% (Today's Market)

Mar 18, 2019 03:32 PM

J&K BANK share price has surged by 5% and its current market price is Rs 49. The BSE BANKEX is up by 1.1%. The top gainers in the BSE BANKEX Index is J&K BANK (up 5.0%). The top losers is FEDERAL BANK (down 0.1%).

VODAFONE IDEA Plunges by 5%; BSE 500 Index Up 0.2% (Today's Market)

Mar 18, 2019 03:24 PM

VODAFONE IDEA share price has plunged by 5% and its current market price is Rs 34. The BSE 500 is up by 0.2%. The top gainers in the BSE 500 Index are PRESTIGE ESTATES (up 16.2%) and BOMBAY DYEING (up 9.1%). The top losers are VODAFONE IDEA (down 5.0%) and IFB INDUSTRIES LTD (down 5.2%).

TTK PRESTIGE Plunges by 5%; BSE CONSUMER DURABLES Index Up 0.1% (Today's Market)

Mar 18, 2019 03:06 PM

TTK PRESTIGE share price has plunged by 5% and its current market price is Rs 8,598. The BSE CONSUMER DURABLES is up by 0.1%. The top gainers in the BSE CONSUMER DURABLES Index are SYMPHONY (up 1.2%) and VOLTAS (up 1.1%). The top losers is TTK PRESTIGE (down 5.2%)..

IFB INDUSTRIES LTD Plunges by 5%; BSE CONSUMER DURABLES Index Up 0.1% (Today's Market)

Mar 18, 2019 01:36 PM

IFB INDUSTRIES LTD share price has plunged by 5% and its current market price is Rs 980. The BSE CONSUMER DURABLES is up by 0.1%. The top gainers in the BSE CONSUMER DURABLES Index are VIP INDUSTRIES (up 1.3%) and SYMPHONY (up 1.2%). The top losers is IFB INDUSTRIES LTD (down 5.1%)..

View More Indian Share Market News

Most Popular

Are You Ready for the Big Nifty Move in the March Expiry?(Profit Hunter)

Mar 8, 2019

History suggests the Nifty could make a big move in March. Are you prepared to benefit from this opportunity?

Smallcaps Are Rallying and You Need to Make the Most of It Now(Profit Hunter)

Mar 7, 2019

Did you just miss the smallcap rally? Or is there still time to catch up? Read on for answers and more...

The One Sector to Bet on Today as India Grows into a 10 Trillion Dollar Economy(The 5 Minute Wrapup)

Mar 7, 2019

India's defence sector is suddenly under the spotlight. Can this sector ride along India's long-term growth story?

Is it the Right Time to Buy Mid and Small Caps Now?(The 5 Minute Wrapup)

Mar 6, 2019

Mid and Small Caps have underperformed large caps in the past year. Is the tide about to turn?

Elections Don't Matter!(The Honest Truth)

Mar 13, 2019

Ajit Dayal shows us why from the point of view of the Indian economy, elections don't matter.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Mar 18, 2019 (Close)

MARKET STATS