Sensex Ends 259 Points Higher; Healthcare, Realty and Automobile Stocks Witness Buying
Closing

After opening the day on a flat note, Indian share markets witnessed most of the buying interest during closing hours today and ended higher.

Benchmark indices edged higher, ahead of the outcome of a two-day policy meeting of the US central bank. Hopes of an early vaccine also improved sentiment.

At the closing bell, the BSE Sensex stood higher by 259 points. Meanwhile, the NSE Nifty stood higher by 83 points.

M&M and Bajaj Auto were among the top gainers today. IndusInd Bank, on the other hand, was among the top losers today.

SGX Nifty was trading at 11,566, up by 39 points, at the time of writing.

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The BSE Mid Cap index ended up by 0.2%. The BSE Small Cap index ended up by 0.4%.

Sectoral indices ended on a positive note with stocks in the realty sector and auto sector witnessing maximum buying interest.

Asian stock markets ended on a mixed note. As of the most recent closing prices, the Hang Seng ended down by 0.1% and the Shanghai Composite stood lower by 0.4%. The Nikkei ended up by 0.1%.

US stock futures are trading higher today, indicating a positive start for Wall Street indices.

Nasdaq Futures are trading up by 63 points (up 0.5%), while Dow Jones Industrial Average Futures are trading up by 71 points (up 0.3%).

The rupee is trading at 73.52 against the US$.

Gold prices are currently trading up by 0.3% at Rs 51,920.

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Domestic gold and silver prices traded in a narrow range ahead of the US Fed decision. The US Fed will today announce its policy decision in its first meeting since adopting a more accommodative approach to inflation and pledging to keep interest rates low for longer.

In the previous session, gold had edged 0.2% higher at Rs 51,770 per 10 grams while silver had slipped 0.2%.

Over last three weeks, gold is trading in a narrow range since hitting record highs of Rs 56,200 last month.

Speaking of the precious yellow metal, 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.

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

Listen in to the podcast here.

You can also watch the podcast video here:

Moving on to stocks specific news...

Reliance Industries and Reliance Industries PP were among the top buzzing stocks today.

Shares of Reliance Industries along with its partly paid shares continued their upward movement with the market price of both these stocks hitting a fresh record high on the BSE.

Reliance Industries PP share price hit a new high of Rs 1,469.95, and has more-than-doubled from its closing price of Rs 689 on listing day (June 15, 2020).

In news from the pharma sector, shares of JB Chemicals surged 10% intraday today, thereby surging as much as 19% in the past two trading days after the company reported strong earnings driven by growth in exports, API, and chronic therapies in the domestic market.

The company's consolidated net profit for the quarter ended June 2020 (Q1FY20) nearly doubled to Rs 1,190 million.

Sales during the quarter grew 18.4% at Rs 5.2 billion against Rs 4.4 billion in the corresponding quarter of the previous fiscal.

Earlier in July, global investment firm KKR & Co. Inc entered into an agreement to acquire 41.7 million equity shares of JB Chemicals, representing 54%, from the promoters of the company.

As part of the deal, KKR acquired the stake from the founding Mody family at Rs 745 per share.

JB Chemicals share price ended the day up by 8.2%.

In other news, Procter & Gamble Health share price slipped 6% today on profit booking. The company reported 10.8% year on year (YoY) growth in net profit at Rs 489 million for June quarter.

The pharma company reported 11% YoY decline in sales at Rs 2 billion, as the business operations got impacted across the country following the nationwide lockdown imposed to contain the spread of Covid-19.

The board of directors of the company recommended a final dividend of Rs 230 per equity share for the financial year ended June 30, 2020.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades on a Volatile Note; M&M and Bajaj Auto Top Gainers
12:30 pm

Share markets in India are presently trading on a volatile note tracking gains in global equities, ahead of the outcome of a two-day policy meeting of the US central bank.

Investors are also awaiting a keynote address by Reserve Bank of India Governor Shaktikanta Das to members of industry body FICCI.

The BSE Sensex is trading up by 28 points, up 0.1%, at 39,100 levels.

Meanwhile, the NSE Nifty is trading up by 9 points.

M&M and Bajaj Auto are among the top gainers today. IndusInd Bank, on the other hand, is among the top losers today.

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The BSE Mid Cap index is trading down by 0.1%. The BSE Small Cap index is trading up by 0.2%.

On the sectoral front, gains are largely seen in the automobile sector.

US stock futures are trading marginally higher today. Nasdaq Futures are trading up by 11 points (up 0.1%), while Dow Jones Industrial Average Futures are trading up by 71 points (up 0.3%).

The rupee is currently trading at 73.76 against the US$.

Gold prices are currently trading up by 0.2% at Rs 51,860.

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. Earlier, gold had hit a record high of Rs 56,191 in Indian markets amid a global rally.

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

{inlineads2}

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.

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

Listen in to the podcast here.

You can also watch the podcast video here:

In news from the automobile sector, India's automobile industry has urged the central government to reduce taxes before the festive season to counter the price increase on Bharat Stage-VI vehicles and support demand revival.

Representatives of leading automakers, including Toyota Kirloskar Motor India, Maruti Suzuki, Mahindra and Mahindra and Hero MotoCorp, said a cut in goods and services tax (GST) on automobiles will help the sector, which had been struggling for more than a year even before the covid-19 outbreak.

Yesterday, a report quoted Shekar Viswanathan, vice chairman, Toyota, saying that high taxes on cars keep companies at bay from building scale in India.

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Later in a statement, Toyota said the auto industry has been requesting the government to support the industry through a viable tax structure. Toyota's cars, including Innova and Fortuner, attract 43% tax at the current GST rates.

The Union minister for environment, forest and climate change, had also suggested that the Centre was evaluating the possibility of GST cuts for two and three-wheelers to revive demand.

Earlier this month, auto stocks were in focus after Union Road Transport and Highways Minister Nitin Gadkari said that a vehicle-scrappage policy was in its final stages of approval and could even be rolled out by month-end.

Reports stated that the vehicle scrappage policy aims to provide customers incentives to exchange old vehicles, which in turn will be used in recycling clusters - ultimately cutting costs of raw materials. It is also expected to boost demand for new vehicles in a Covid-hit economy.

Society of Indian Automobile Manufacturers (SIAM) estimates vehicle sales to decline 25-45% in FY21.

During April-August, passenger car and utility vehicle wholesales fell 54% and 38%, respectively, year-on-year.

Speaking of the automobile sector, note that the sector has rebounded sharply from its March lows.

Have a look at the chart below:

Healthcare sector is at the top, followed by the automobile sector.

As per Apurva Sheth, the auto index entered the greed phase in September 2019 and will stay there until December 2021. This means there is still a lot of fuel left for auto stocks.

How automobile stocks perform in the coming months remains to be seen. Stay tuned for more updates from this space.

Moving on to stock specific news...

Sterlite Technologies is among the top buzzing stocks today.

Shares of the company surged over 5% today after the company announced a partnership with Bharti Airtel to build a modern optical fibre network for the telco across 10 telecom circles.

Sterlite Technologies said this modern optical network will enable Airtel to deliver world-class customer experience through enhanced scalability, reduced latency, and improved bandwidth.

The densely fiberised, future-ready network, will also form the foundation for many next-gen services such as 5G, fibre-to-the-home (FTTH), Internet of Things (IoT), enterprise networks, and Industry 4.0.

For the quarter ended June 2020, Sterlite Technologies had posted a 96% decline in consolidated net profit to Rs 59.6 million, hit by the Covid-19 crisis. The company had recorded a profit of Rs 1,428.7 million in the same period a year ago.

Sterlite Technologies share price is presently trading up by 4.1%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens Marginally Higher; Healthcare and Telecom Stocks Lead
09:30 am

Asian stock markets are trading on a mixed note today as investors await the Federal Reserve's view on the economy at the end of its policy meeting.

The Shanghai Composite is flat while the Hang Seng is down 0.2%. The Nikkei 225 is trading up by 0.1%.

US stocks rose on Tuesday as investors hoped the Federal Reserve would stick with its supportive policy stance as the central bank's two-day meeting got under way.

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

The BSE Sensex is trading up by 66 points.

The NSE Nifty is trading higher by 18 points.

M&M and L&T are among the top gainers today. Asian Paints, on the other hand, is among the top losers today.

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The BSE Mid Cap index has opened up by 0.3%.

The BSE Small Cap index is trading higher by 0.4%.

Sectoral indices are trading mixed with stocks in the healthcare sector witnessing maximum buying interest.

Oil & gas stocks are trading in the red.

The rupee is currently trading at 73.62 against the US$.

Gold prices are currently trading up by 0.1% at Rs 51,803 per 10 grams.

{inlineads2}

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...

M&M is among the top buzzing stocks today after it was reported that Mahindra and Mahindra's overseas subsidiary SsangYong Motor was close to signing a binding investment agreement with US-based HAAH Automotive Holdings.

SsangYong's shares touched the upper circuit of 30% to end at 5,620 won per ordinary share on the KOSPI.

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Note that, Mahindra had earlier announced that it will not make any further investments in the ailing SUV-maker and wanted to give up its controlling stake after being unable to turn around the operations of the company.

The company's board moved a special resolution at its AGM to reduce its shareholding in SsangYong to less than 50%, an indication of a new investor coming in rather than a complete sell out.

Mahindra currently holds a 74.7% stake in SsangYong.

Now, how this pans out going forward remains to be seen. We will keep you updated on the developments from this space.

M&M share price opened the day 1.2%

Speaking of the automobile sector, have a look at the chart below which shows the performance of BSE auto index for the month of September since inception.

The BSE auto index ended in the red on only 3 out of the last 15 years for the month of September. That's a success ratio of 80%.

The auto index has entered the greed phase in September 2019 and will stay there until December 2021. This means there is still a lot of fuel left for auto stocks.

How automobile stocks perform in the coming months remains to be seen. Stay tuned for more updates from this space.

In another development, Take Solutions share price is also in focus after the company announced that the management has taken into consideration the impact of known internal and external events arising from COVID-19 pandemic in the assessment of recoverability of trade receivables, contract assets and certain investments in subsidiaries.

The liquidity and business constraints, consequent to impact of COVID 19 pandemic, have significantly hampered the operations of a step-down subsidiary viz.

Navitas Life Sciences GmbH, Germany (a direct subsidiary of Ecron Acunova and a step- down subsidiary of TAKE Solutions).

After assessing the current situation and considering the local requirements, the liquidation process of Navitas Life Sciences GmbH, Germany has been initiated as per the requirements of local laws, the reports noted.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Down 24 Points, Fresh Investments by Mutual Funds, SAIL Q1 Results, and Top Buzzing Stocks Today
Pre-Open

Indian share markets ended higher yesterday.

At the closing bell yesterday, the BSE Sensex stood higher by 288 points. Meanwhile, the NSE Nifty stood higher by 82 points.

IndusInd Bank and Bajaj Finance were among the top gainers. Titan, on the other hand, was among the top losers.

The BSE Mid Cap index ended up by 0.9%. The BSE Small Cap index ended up by 1.4%.

Barring realty stocks, all sectoral indices ended on a positive note with stocks in the healthcare sector and banking sector witnessing maximum buying interest.

At 8 am today, the SGX Nifty was trading down by 24 points, or 0.2% lower at 11,510 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

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Gold prices were trading up by 0.7% at Rs 52,048 at the time of closing stock market hours yesterday.

Gold and silver prices rose yesterday ahead of US Federal Reserve's policy meet. Rising Covid-19 cases also helped the demand for bullion counters.

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. Earlier, gold had hit a record high of Rs 56,191 in Indian markets amid a global rally.

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

{inlineads2}

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.

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

Listen in to the podcast here.

You can also watch the podcast video here:

Top Stocks in Focus Today

JB Chemicals will be among the top buzzing stocks today. JB Chemicals reported a 92.6% year-on-year (YoY) jump in its consolidated net profit at Rs 1,194.2 million for the quarter ended June 2020 against Rs 620 million profit in the year-ago period.

Revenue came in at Rs 5,222.8 million, up 17% against Rs 4,461.1 million in the corresponding quarter of the previous fiscal. Total income rose 18.7% YoY at Rs 5,449.7 million. EBITDA rose by 61.9% YoY and stood at Rs 1,554.1 million in Q1FY21.

Tata Motors share price will be in focus today as the company has ramped up monthly production to 16,000-18,000 cars for the coming months. It was reported that Tata Motors has initiated the process of selling stakes in units Tata Technologies and Tata Hitachi Construction Machinery Co. as part of its ambitious plan to turn debt-free in three years. The intent is to monetise non-core assets and the exercise has begun with these two companies.

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Fresh Buying and Selling in Mutual Funds

In news from the mutual funds space, as per an article in a leading financial daily, mutual funds made fresh buying in eight stocks and exited four counters.

As per the article, the eight stocks that funds invested in include ADF Foods, Associated Alcohols & Breweries, Fairchem Organics, Fiem Industries, Kovai Medical Center & Hospital, MSTC, Technocraft Industries and Mindspace Business Parks REIT.

On the other hand, the four stocks they exited are Macpower CNC Machines, NDR Auto Components, Novartis India and RSWM.

Among Nifty 50 stocks, maximum buying was seen in Axis Bank and Coal India whereas selling was seen in Adani Ports and Asian Paints.

Speaking of mutual funds, note that last week on Friday, the markets regulator issued guidelines for 'multi-cap' equity mutual fund schemes.

The circular mandates multi-cap equity schemes to allocate 25% each to largecaps, midcaps, and smallcaps. The remaining 25% is up to the fund manager.

The regulator also issued a clarification on Sunday, suggesting that based on the preference of unit holders, mutual funds could consider rebalancing.

They also have an option to facilitate a switch for unitholders to other schemes. They could also merge the multicap fund with a largecap fund or convert it to large cum midcap fund.

Assuming every fund rebalances, Friday's circular is expected to trigger a move of around Rs 280 billion from largecaps to smallcaps.

Richa Agarwal, lead smallcap analyst at Equitymaster, believes this move would be net positive for select smallcap stocks.

The BSE smallcap index gained over 4% yesterday. This was the highest ever single day move in last five years.

As per Richa, there could be a speculative rally across smallcaps as we saw yesterday.

Here's what she wrote about it in yesterday's edition of the Profit Hunter:

  • It would be myopic and imprudent to bet on any smallcap in the hope of a regulation driven rally.

    That said, you must invest in smallcaps selectively with long-term horizon in mind.

    Here's why...
  • You see, despite the rally in smallcaps since March, there is still a huge valuation gap between smallcaps and Sensex.

    The ratio of smallcaps to Sensex stands at 0.37 now, as compared to long-term average of 0.44 times.

    This means certain smallcaps will witness a significant rebound, irrespective of regulations.

Richa believes this could be a once in a decade opportunity to get rich from select smallcaps.

SAIL Posts Net Loss of Rs 12.3 Billion in Q1

SAIL posted a consolidated net loss of Rs 12.3 billion for the first quarter ended June 30, mainly on account of reduced income. The company had posted Rs 1 billion net profit in the year-ago quarter.

During the quarter under review, the company said its net profit declined to Rs 93.5 billion from Rs 150 billion in the April-June period of the preceding fiscal.

Its total income stood at Rs 113.3 billion as against Rs 148.9 billion a year ago.

The company said the pandemic outbreak and measures to contain it have caused significant disturbance and slowdown of economic activities. Consequently, the company's manufacturing operations had to be scaled down during the said quarter.

Though the operations resumed in the later part of the quarter with limited availability of workforce and disrupted supply chain, the restrictions imposed adversely impacted the sales volume and realization.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.