Indian Indices Erase Gains; Metal Stocks Under Pressure

Thu, 16 Jan 12:30 pm

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Share markets in India have erased early gains and are presently trading on a volatile note.

Benchmark indices rose to their respective all-time highs in early trade today, taking cues from the global peers which rose after the US and China signed an initial deal to defuse their 18-month trade war.

Sectoral indices are trading mixed with stocks in the IT sector and metal sector witnessing selling pressure, while telecom stocks and healthcare stocks are witnessing buying interest.

The BSE Sensex is trading down by 26 points, while the NSE Nifty is trading down by 12 points.

The BSE MidCap index is trading up by 0.6%, while the BSE SmallCap index is trading up by 0.5%.

Speaking of the BSE SmallCap index, note that the index is up 19% from its August 2019 low. The index hit its lowest level since 2018 on 22 August 2019 when it closed at 12,119.

But since the August 2019 low, smallcaps have been making a comeback. In fact, since the start of 2020, the uptrend has accelerated!

Have a look at the chart below...

Of the 704 stocks in the index, 532 stocks have gained during this period, whereas 170 stocks have continued to bleed.

The 532 stocks that gained have gone up by an average of 30%. The 170 smallcap stocks that reported declines are down 18% on average.

You can see the smallcap index is rebounding to levels we saw in the first half of 2019. In fact, it is just 1% below the level it was a year ago.

But it is still 28% below its 2018 all-time high of 20,047! To go back to the 2018 peak, the index would have to rise another 39%.

So is this smallcap rebound here to stay? Will 2020 be the year of smallcaps?

Ankit Shah, the editor of daily premium newsletter Equitymaster Insider (requires subscription), has been talking about this rebound since a long time.

As per him, this is a great time to be invested in smallcaps where you can find a lot of great buying opportunities.

In news from the aviation space, Jet Airways share price is in focus today.

Shares of the company are locked in the lower circuit band of 5% today amid reports that the Hinduja Group has backed out as it found no value in the company.

However, South America-based Synergy Group and Delhi-based Prudent ARC submitted the EoIs yesterday - the last day to submit the proposal for the revival of the airline.

Reports state that Prudent ARC has submitted an EoI, but its assets don't meet the eligibility criteria of a minimum net worth of Rs 20 billion.

While Synergy wants Jet's lenders to take a huge haircut on the airline's debt of over Rs 85 billion, it will also need to find an Indian partner for the acquisition as mandated by India's foreign investment rules.

The beleaguered airline had shut its operations in April last year due to severe cash crunch.

Jet Airways was admitted under the insolvency process on June 20, 2019, after its bankers failed to find any takers despite months of negotiations.

The airline stopped flying on April 17 and it had around 14,000 employees on that date.

Reportedly, creditor claims on the airline are for Rs 360.9 billion, of which Rs 146.4 billion had been admitted as on October 20.

How the above developments pan out remains to be seen. Stay tuned for more updates from this space.

Moving on to news from the pharma sector, Strides Pharma Science's wholly owned subsidiary - Strides Pharma Global Pte, Singapore has received approval for Loratadine Softgel Capsules, 10 mg (OTC) from the United States Food & Drug Administration (USFDA).

The product is a generic version of Claritin Liqui-Gels Capsules, 10 mg, of Bayer HealthCare LLC.

Strides Pharma Science share price is presently trading down by 0.4%.

Meanwhile, Torrent Pharma is planning to raise funds by issue of equity shares including convertible bonds / debentures through Qualified Institutional Placement (QIP) and / or Depository Receipts or any other modes.

A meeting of the board of directors will be held on January 27 to consider and approve the audited financial results for the quarter and nine months ended on December 2019.

The board will also consider the payment of interim dividend for the year and taking enabling resolutions for raising of funds.

Torrent Pharma share price is presently trading up by 1.4%.

Speaking of the pharma sector, in the video below, Tanushree talks in great detail about the pharma sector.

She tells us where the sector stands now and also about the potential for a rebound.

Tune in to find out more...

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

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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

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