Sensex Opens 700 Points Higher; Metal & Energy Stocks Lead

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Asian share markets are higher today as Japanese and Hong Kong shares show gains. The Hang Seng is up 0.8% while the Shanghai Composite is trading up by 2.8%.

Back home, India share markets opened on a strong note. The BSE Sensex is trading up by 546 points while the NSE Nifty is trading up by 155 points.

The BSE Mid Cap index and the BSE Small Cap index opened up by 2.3% and 2%, respectively.

All sectoral indices have opened the day on a positive note with metal stocks and energy stocks witnessing maximum buying interest.

The rupee is currently trading at 72.04 against the US$.

Speaking of the stock market crash we saw last week, in Friday's podcast, we had shared a special episode from investor hour...

There's blood on the streets...

In this emergency episode of the Investor Hour, Rahul Goel talks to Vijay Bhambwani, who he calls India's #1 trader.

Vijay dives deep in this "coronavirus" situation and presents a picture which we believe would be extremely beneficial to any investor or trader.

They talk stocks, commodities, bullion and currency.

For each of these assets, they talk what's around the corner, and how one should position oneself for potential gains.

Whatever you do, don't miss this emergency issue of the Investor Hour!

Listen in here...

Towards the end, Vijay shares a very unique perspective on how to allocate assets. Don't miss that!

In news from the telecom sector, Bharti Airtel has completed self-assessment exercise of adjusted gross revenue (AGR) dues and said it owes a total of Rs 130 billion to department of telecommunications (DoT).

Earlier this month, Airtel had paid Rs 100 billion to the DoT. The company has now paid its balance dues of Rs 30 billion.

In addition to Rs 130 billion, the company has also paid Rs 50 billion as "an ad-hoc payment subject to subsequent refund/adjustment" to cover differences arising of any arising from the reconciliation exercise with the DoT.

Bharti Airtel share price is presently trading up by 2.2%.

Moving on to news from the banking sector, bank credit growth declined to 8.5% in January from 13.5% in the year-ago period led by a sharp slowdown in loans to the services sector.

According to data released by the Reserve Bank of India (RBI), growth in advances to the services sector decelerated to 8.9% from 23.9% in January 2019.

Bank loan growth to non-banking financial companies (NBFCs) slowed to 32.2% in the reporting month from a growth of 48.3% a year-ago.

During the month, personal loans segment grew by 16.9%.

Within personal loans, credit to housing segment grew by 17.5% from 18.4%, while education loan showed a negative growth of 3.1% as against a negative growth of 2.3% in January 2019.

Advances growth to agriculture and allied activities contracted to 6.5% from 7.6.% rise last year.

Credit growth to industry decelerated to 2.5% from 5.2%.

According to the latest quarterly statistics on deposits and credit of banks, bank loan growth decelerated to 7.4% in the October-December 2019 from 12.9% in the year-ago quarter.

During the quarter, loans by public sector banks grew by 3.7% while credit from private sector banks saw a growth of 13.1%.

In the fortnight ended February 14, 2020, bank credit grew by 6.3% to Rs 100.41 trillion, from Rs 94.4 trillion in the year-ago fortnight.

Deposits grew by 9.2% to Rs 132.35 trillion in the fortnight compared to Rs 121.19 trillion, the RBI data showed.

Note that last month, RBI governor Shaktikanta Das had said that slowing credit growth is the biggest challenge the banking industry is facing.

Rating agency CRISIL, in a recent note, said credit growth is likely to be around 6% in this fiscal but is expected to accelerate to 8-9% in FY21.

We will keep you updated on all the developments from this space. Stay tuned.

Speaking of the banking sector, the low access to credit for micro small and medium enterprises (MSMEs) tells us there is a huge opportunity for lenders.

This is evident from the chart below:

India's Huge Lending Opportunity

Of the 60 million MSMEs in India, only 11% had access to credit from organised lenders. Most of them are self-financed or get credit from unorganised sources.

Here's what Tanushree Banerjee wrote about this in a recent edition of The 5 Minute WrapUp...

• Self-financing limits the growth of these MSMEs. On the other hand, high interest rates from unorganised sources makes it difficult for them to earn profits.
  
  The Modi government is looking at various ways to correct this problem. Mudra loans, online loans facilities are being made available to MSMEs.
  
  Slowly but surely, lenders are sensing the huge opportunity that lies ahead for this sector.
  
  Banks and other financial firms with prudent lending practices and strong distribution networks will benefit from this megatrend.

Tanushree is counting on 7 top stocks from the Indian stock market that will benefit from this megatrend.

As per her, now is the right time to buy these stocks to profit from the Rebirth of India. You can read about them here.

And 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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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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Indian Share Market Update: Top Gainers and Losers