Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 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


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

Sensex Opens Firm; Wipro & Coal India Top Gainers
Fri, 13 Jul 09:30 am | Rini Mehta, TM Team

Asian share markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 1.3% while the Hang Seng is up 0.5%. The Shanghai Composite is trading down by 0.1%. US stocks climbed on Thursday as top technology names hit record highs and industrials rebounded from losses driven by trade worries the day before.

Back home, India share markets opened the day on a firm note. The BSE Sensex is trading up by 127 points while the NSE Nifty is trading up by 29 points. The BSE Mid Cap index opened up by 0.1% while BSE Small Cap index opened down by 0.1%.

The rupee is currently trading at 68.63 to the US$.

Sectoral indices opened the day on a mixed note with IT stocks and metal stocks witnessing maximum buying interest. While, realty stocks & PSU stocks opened the day in red.

In the news from the economy. The retail inflation in June rose to 5%, a five-month high, despite easing food prices.

Meanwhile, the industrial production (IIP) growth slipped to a seven-month low of 3.2% in May mainly due sluggish performance of manufacturing and power sectors coupled with poor offtake of fast moving consumer goods (FMCG).

Manufacturing, which contributes 78% of industrial output, grew 2.8% in May, slower than a 5.2% rise in April, as domestic demand slowed.

--- Advertisement ---
Missed The Sensex Rally? Here's A Second Chance…

Yesterday, Sensex was back to breaking all the records.

Not only did it reclaim the 36,000 mark…it even touched its All-time High Mark.

But if you missed the rally…you still have a second chance.

Our latest small cap Special Report gives you full details on 3 Niche Giants, or as we like to call them - Junior Blue Chips, which are still attractive. And which you could consider adding to your portfolio right away.

So, don't get left behind…

Click here for full details…

A rising inflation and declining industrial production is not a good news for the economy.

The retail inflation based on Consumer Price Index (CPI) was 4.87% in May. It was 1.46% in June 2017. The earlier high was in January this year at 5.07%.

The inflation in the food basket was 2.91%, compared to 3.1% in May. The inflation in fuel and light category, however, went up to 7.14% as against 5.8% in May. The government has mandated the RBI to keep inflation at 4%, with a margin of 2% on either side.

The RBI governor headed Monetary Policy Committee will be meeting later this month to review interest rate regime.

Note that, consumer prices are under pressure due to both domestic and global factors.

Global factors are crude prices and a depreciating rupee. Crude prices in June were about 60% higher than the same month a year before.

Domestic pressures are largely from the demand side, which is getting reflected in core inflation that printed at 6% (excluding food, fuel, light and petrol) in June.

Speaking of the recent weakness in the rupee versus the US dollar, it indicates further trouble for the market ahead.

As seen from the below chart, when the Sensex corrected to its multi-year lows in March 2009, the rupee had also weakened by 21% in the past 9 months. Similarly, when Sensex hit an all-time high in January 2018, the rupee had been gradually strengthening over the past year.

Change in the Rupee and Sensex in the Past 10 Years

Post January, the rupee has been on a constant decline versus the dollar.

Increase in US bond yields has made it attractive for foreign investors. This has resulted in capital outflows from the Indian market. Past history has shown that any further weakening of the rupee will adversely impact the market.

But for investors, is it a matter of concern?

Our Research Analyst, Girish Shetty believes, if you have a horizon of 10 or more years, it shouldn't. As we can see from the chart, despite the rupee weakening by over 60% in the past decade, Sensex has also been up in the same period.

Moving on to the news from finance sector. As per an article in a leading financial daily, Avendus Capital, controlled by US private equity giant KKR, emerged as the surprise frontrunner to acquire the mutual fund business of IDFC.

A flurry of fund flows into broader markets and increased public interest in mutual funds have sparked the interest of global investors in India's Rs 23 trillion asset management industry.

Avendus and KKR have made an offer of Rs 30-40 billion and are in exclusive negotiations with IDFC, the reports noted.

Meanwhile, other contenders such as IndusInd Bank and Reliance Nippon Asset Management have backed out.

The transaction, if successful, could mark the entry of a global private equity investor into India's 42-member strong mutual fund industry. It would also be the biggest buyout of a mutual fund business in the country.

Reportedly, there is strong interest in IDFC AMC as it has established schemes with a longstanding track record, has a sound fund management team and a strong relationship with distributors.

IDFC share price opened the day up by 0.2%.

To get more updates on share market, click here.

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 "Sensex Opens Firm; Wipro & Coal India Top Gainers". Click here!


Stock Market Updates

Indian Indices Trade Marginally Higher; Pharma Stocks Witness Buying (Today's Market)

Jul 17, 2018 12:30 pm

The BSE Sensex is trading up by 48 points, while the NSE Nifty is trading up by 31 points.

Sensex Opens in Green; Energy & PSU Stocks Witness Buying (Today's Market)

Jul 17, 2018 09:30 am

Indian share markets open firm with Sensex trading up by 95 points, while the Nifty is trading up by 37 points.

Indian Indices Trade in Red, Inflation on an Uptrend, and Top Stocks in Action (Today's Market)

Jul 17, 2018 Pre-Open

Inflation creeping up, pharma stocks in focus, and other stocks in action to watch out today...

View More Indian Share Market News

Most Popular

The Real Truth About India's FDI, Beyond WhatsApp(Vivek Kaul's Diary)

Jul 4, 2018

The FDI numbers do not look very impressive once we adjust for repatriations as well as the overall growth in the economy.

How to Avoid a 90% Loss Suffered by This Super Investor(The 5 Minute Wrapup)

Jul 12, 2018

Blindly following super investors is a dangerous game to play. Here's how you can avoid such mistakes.

The Answer to Your Wealth Worries: Small Caps (Especially Now)(Profit Hunter)

Jul 10, 2018

If you're worried about the markets - you are on the wrong track. This is opportunity - put your wealth-building hat on, instead - Richa shows you how...

New Fund Offer - ICICI Prudential Pharma Healthcare and Diagnostics Fund - Should You Invest?(Outside View)

Jul 6, 2018

ICICI AMC launches an open -ended equity fund following Pharma, Healthcare, Diagnostic and allied theme.

When Disappointment Panda is Around. Buy Quality Stock like This!(Chart Of The Day)

Jul 6, 2018

Buy Companies that can fight all kinds of Pandas and Bears in the long run.


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Jul 17, 2018 (Close)