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Sensex Opens Higher; Realty and Healthcare Stocks Lead
Wed, 23 Sep 09:30 am

Asian stock markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.1% while the Hang Seng is down 0.3%. The Nikkei 225 is trading down by 0.6%.

Wall Street stocks rebounded on Tuesday, led by a jump in Amazon.com, even as a likely delay in new fiscal stimulus by Congress and an increase in the number of coronavirus cases dampened hopes of a faster economic recovery.

Back home, Indian share markets have opened the day on a positive note.

The BSE Sensex is trading up by 322 points.

The NSE Nifty is trading higher by 96 points.

HCL Technologies and TCS are among the top gainers today.

Meanwhile, the BSE Mid Cap index has opened up by 0.8%.

BSE Small Cap index is also trading higher by 1.2%.

Sectoral indices are trading mixed with BSE Realty Index witnessing maximum buying interest.

BSE Telecom Index is trading in the red.

Moving on, the rupee is currently trading at 73.51 against the US$.

Gold prices are currently trading down by 0.2% at Rs 50,381.

How lucrative has gold been as a long-term investment in India?

The chart below shows the annual returns on gold over the last 15 years...


As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

Even with the recent volatility in prices, gold and silver remain among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

So, is it time to book profits in gold and silver?

In our latest episode of Investor Hour Podcast, Jim Rogers joins Rahul Goel to talk about gold and more....

In the podcast, he tells that he was buying gold and silver and would buy even more. He believes you can get rich with investments in gold and silver.

He is buying stocks too...but not the ones you might expect.

In this freewheeling chat, Jim also talked about China, his view on the US dollar, the opportunities in agriculture, the bubble in tech stocks, bonds, bitcoin...and more.

Tune in here:

Moving on to the stock specific news...

Reliance Industries is among the top buzzing stocks today.

Reliance Industries and Reliance Retail Ventures (RRVL) announced that global investment firm KKR will invest Rs 55.5 billion into Reliance Retail, a subsidiary of Reliance Industries.

This investment values Reliance Retail at a pre-money equity value of Rs 4.2 trillion. KKR's investment will translate into a 1.3% equity stake in RRVL on a fully diluted basis.

This is the second deal by Reliance Retail in two weeks. Earlier this month, private equity giant Silver Lake Partners had said that it will invest Rs 75 billion in Reliance Retail for a 1.8% stake.

This marks the second investment by KKR in a subsidiary of Reliance Industries, following a Rs 113.7 billion investment in Jio Platforms announced earlier this year.

Reliance Industries share price opened the day up by 2.7%.

In another development, the Shapoorji Pallonji (SP) group has valued its stake in Tata Sons at close to Rs 1.8 trillion.

The valuation is based on the current value of Tata Sons' shares in Tata group listed companies such as Tata Consultancy Services (TCS), Titan Company, Tata Motors, and unlisted subsidiaries including Tata Capital and Tata AIA Life Insurance.

SP group has also assigned a brand value of Rs 1.5 trillion to Tata Sons and wants a proportionate share of the same.

Shapoorji Pallonji & Co (SP & Co) is the single largest non-promoter shareholder, with 18.4% stake. This puts the valuation of Tata Sons at s 9.7 trillion or Rs 24 million per share.

Tata Sons' stake in TCS alone accounts for 70% of its entire group valuation.

A further 15% is accounted for by the Tata brand value, which itself comes from the superior financial performance of group firms such as TCS, Titan, and Tata Consumer Products.

If the Tatas agree to the offer, it would be a huge windfall for the SP group, which is currently struggling with high leverage, poor profitability, and negative cash flows at its flagship company SP & Co, the reports noted.

How this pans out remains to be seen.

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!

Read the latest Market Commentary


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