Sensex Opens Lower Tracking Weak Global Cues; Tata Motors & ONGC Top Losers

Tue, 5 Jan 09:30 am

   Previous Close   

   Pre-Open   

   12:30 pm   

   Closing   

A weak Wall Street close and the UK lockdown sent Asian share markets lower today. The Nikkei is trading lower by 0.1% and the Hang Seng is trading down by 0.2%.

In US, Wall Street indices closed sharply lower overnight, sliding from all-time peaks on the first trading day of the year, as risk appetite ebbed amid upcoming runoff elections in Georgia and the persistent surge in coronavirus cases.

The Dow Jones Industrial Average, which touched a record high earlier in the session fell 383 points or 1.3% while the Nasdaq dropped 1.5%.

British Prime Minister Boris Johnson ordered England into a new national lockdown to contain a surge in Covid-19 cases, fueled by a more transmissible variant of the virus.

Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty and tracking weak global cues.

Market participants are tracking Covid vaccination and Budget-related news flow.

The BSE Sensex is trading down by 89 points. Meanwhile, the NSE Nifty is trading lower by 33 points.

TCS is among the top gainers today. ONGC, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened down by 0.2%. The BSE Small Cap index is trading down by 0.3%.

Barring IT stocks, all sectoral indices are trading on a negative note with stocks in the energy sector and automobile sector witnessing most of the selling pressure.

Shares of TCS and Trident hit their 52-week highs today.

The rupee is trading at 73.09 against the US$.

Gold prices are trading up by 0.1% at Rs 51,458 per 10 grams.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

Speaking of stock markets, note that since the lows in March 2020, the smallcap index has gained more than 105%.

While caution is indeed warranted, Richa Agrawal, Research Analyst at Equitymaster, thinks there is still a lot more steam left to this smallcap rally.

Here's what she wrote in a recent edition of Profit Hunter...

• For one, the gap between Sensex and smallcap index is still huge.
  
  In January 2018, the smallcap to Sensex ratio was 0.57 times, versus a long term average of 0.44 times.
  
  At present, this ratio stands at 0.37 times, well below the long-term average.
  
  The possibility of a convergence between growth and value is a lot higher in the smallcap space, than in the large caps.
  
  And then here are some other interesting facts.
  
  Historically, the smallcap index, after a sharp correction, has risen up to 300%.

The above observations have served Richa's smallcap service Hidden Treasure well. Her first batch of essential stock recommendations have offered robust returns so far, as can be seen in the chart below:

While the margin of safety in valuations has come down in these stocks, Richa has recently added another stock to this list.

This company is the world's largest player in a niche segment and its product falls in the essential category. This global leader enjoys unique competitive advantages that are hard to replicate by its peers.

If you are interested in knowing more and in becoming a Hidden Treasure subscriber, here's where you can sign up.

In news from the pharma sector, Sun Pharma has initiated Phase 2 clinical trial for SCD-044 in patients with moderate to severe plaque psoriasis.

The Phase 2 study is a randomized, double-blind, placebo-controlled study to assess the efficacy and safety of SCD-044 in the treatment of moderate to severe plaque psoriasis. The study will enroll approximately 240 subjects and topline results are expected in 2022.

Sun Pharma share price has opened the day up by 1%.

In news from the chemicals sector, Alkyl Amines is among the top buzzing stocks today. The company on Monday announced stock split and expansion plans.

"The board of directors of the company are scheduled to meet on February 2 to consider the proposal of sub-division of equity shares of the company from the face value of Rs 5 to a lower denomination. The board will also consider the proposal for setting up of new project(s) including Amines," the company said in a BSE filing.

Stock of the specialty chemical firm surged over 10% yesterday on the back of above news.

Further, the company added that in the said meeting, the board will approve financial results for the quarter and nine months ended December 31. The board will consider the declaration of interim dividend, if any, on the equity shares of the company for the financial year 2020-21.

Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. Earlier in September 2014, the company had subdivided the face value of its equity shares from Rs 10 paid-up to Rs 5 paid-up.

Alkyl Amines share price has opened the day up by 6%.

Speaking of stock markets, Vijay Bhambwani, in his latest video, talks about indices versus stocks.

What is the better option, trading indices via ETFs or trading individual stocks? What are the pros and cons of each?

Tune in to the video to find out more:

Moving on to news from the finance sector, as per a leading financial daily, the insurance regulator may conduct a fit and proper test on the Indian fund used by US-based Oaktree Capital to hold a 51% stake in Dewan Housing Finance Corp (DHFL's) life insurance business if its offer to acquire the bankrupt home financier is accepted.

Oaktree has proposed to hold DHFL's stake in Pramerica Life Insurance through an India-incorporated alternative investment fund (AIF) to comply with foreign direct investment (FDI) rules, which restrict foreign ownership in insurers to 49%.

DHFL's foreign partner, Pramerica Financial Inc, already owns the maximum permissible stake.

The report stated that the sale of the insurance business, where FDI rules apply, is a crucial part of the overall plan of the lenders to recover a part of their outstanding dues.

While Piramal has offered to buy out Pramerica Life Insurance for Rs 10 billion, Oaktree's bid suggests that it will rope in an AIF and will infuse Rs 10 billion into the fund, which in turn, will own DHFL Investments 51% stake in the insurance firm.

The committee of creditors (CoC) for DHFL, which is overseeing the sale of the mortgage lender, is currently in talks with top bidders Oaktree and Piramal Capital.

DHFL owes Rs 870 billion to banks and bondholders, including State Bank of India (SBI), Life Insurance Corp. of India, Union Bank of India and many other foreign and domestic lenders.

DHFL's lenders are currently voting to select the winning bid. The decision to go with Oaktree or Piramal will be completed by 14 January.

Last month, it was reported that Piramal raised its total offer commitment for DHFL to Rs 382.5 billion, improving on Oaktree's commitment of Rs 364 billion.

How the above developments pan out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

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

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers