Gold Hits Record High, SGX Nifty Slumps, Stimulus Package for Indian Inc, and Top Cues in Focus Today

Tue, 19 May Pre-Open

   Previous Close   

   09:30 am   

   12:30 pm   

   Closing   

Indian share markets ended deep in the red yesterday.

Benchmark indices extended losses yesterday as the session progressed. This was seen as investors were unimpressed by the stimulus measures announced over the weekend, which failed to provide any near-term relief.

Selling pressure was also seen as the government extended nationwide lockdown till May 31, although with some relaxations to pave the way for increased movement of people and facilitate more economic activity.

Further, rising tensions between the US and China and poor economic data from world economies dampened sentiment.

Data in Japan confirmed it slipped into recession in the first quarter, putting it on course for its worst post-war slump.

At the closing bell yesterday, the BSE Sensex stood lower by 1,069 points (down 3.4%) and the NSE Nifty closed down by 314 points (down 3.4%).

The BSE Mid Cap index and the BSE Small Cap index ended down by 3.8% and 2.9%, respectively.

Barring IT stocks, all sectoral indices ended on a negative note with stocks in the finance sector, banking sector and automobile sector witnessing most of the selling pressure.

The SGX Nifty witnessed huge selling pressure and was trading at 8,824, down by 301 points, at the time of Indian stock market closing hours yesterday.

SGX NIFTY is a derivative of NIFTY index traded officially in Singapore stock exchange.

How it performs this week and affects trades in Indian markets remains to be seen.

We will keep you updated about its movement in upcoming market commentaries. Stay tuned.

Speaking of stock markets, in the recent episode of Investor Hour, Rahul Goel talks to Vijay Bhambwani, who he calls India's #1 trader.

Vijay believes there's money to be made in the market... across asset classes.

He talks about stocks, bonds, the rupee, gold, silver, crude oil, and pretty much everything of interest to both traders and investors.

Tune in to find out more...

Meanwhile, in his latest video, Rahul Shah, talks about how you can be 'Atma Nirbhar' or self-reliant in your stock selection. He talks about some simple methods and principles so that you are able to buy stocks on your own and not be dependent on anyone.

Tune in to find out more...

Gold Hits Record High

Domestic gold prices hit new highs yesterday for the second day in a row.

On Multi Commodity Exchange (MCX) yesterday, June gold futures surged 1.1% to a new high of Rs 47,929 per 10 grams.

Tracking gold, silver futures rose 3% to Rs 48,053 per kg.

In global markets, gold prices surged to over seven-year highs after US Federal Reserve chief warned that a full recovery of the US economy could drag through 2021 and depends on the delivery of a vaccine.

Spot gold rose about 1% to US$ 1,759.98, the highest since October 2012.

Note that gold prices have surged over 15% in global markets this year amid worries of a deeper global recession.

Latest data showed US retail sales and factory output registered their steepest declines on record in April amid coronavirus-related shutdowns.

Reportedly, speculations that US interest rates could go negative has pushed holdings in gold-backed exchange-traded funds at a record high.

The holdings of SPDR Gold Trust holdings, the world's largest gold-backed exchange-traded fund, rose 0.8% to 1,113.78 tonnes on Friday last week.

Also speaking of gold, note that the interest in gold has gone up ever since stock markets crashed in March. Gold prices in the international markets are getting close to its all-time high.

But bitcoin has been on an up move too. It's price in dollars has almost doubled in the last two months.

In his latest video, Apurva Sheth, lead chartist at Equitymaster, compares gold and bitcoin. He explains, which is the better asset in this difficult economic situation.

Tune in to his video here...

FDI in Defence Sector Hiked from 49% to 74%

Shares of companies engaged in the defence sector witnessed huge buying interest yesterday after the government hiked foreign direct investment (FDI) via automatic route from 49% to 74%.

Shares of Hindustan Aeronautics, BEML, Bharat Dynamics and Bharat Electronics were among the state-owned companies that rallied up to 10%, while Bharat Forge, Astra Microwave Products and Walchandnagar Industries from the private sector were up in the range of 3-5% intraday yesterday.

Finance Minister Nirmala Sitharaman announced that the FDI limit in defence production was being raised to 74% from 49% for FDI through the automatic route as part of reforms in the defence sector to boost the government's Make in India campaign.

Meanwhile, some weapons and platforms will be banned for imports. Items banned for imports can only be purchased from within the country.

The armed forces will now have to look to local manufacturers or companies that have set up manufacturing bases in India in order to meet their requirements.

In addition to banning the import of weapons, FM said that import spares will be used for indigenisation of manufacturing and the budget will include separate provisioning for domestic capital procurement.

Stimulus Package Measures for Indian Inc.

On the last day of stimulus package announcements on May 17, Finance Minister Nirmala Sitharaman unveiled a set of measures expected to give India Inc. some breathing space amid the COVID-19 disruption.

The seven areas in focus in announcements were MGNREGA, healthcare and education, business during COVID-19, decrimilisation of Companies Act, Ease of Doing Business, PSUs and state government and resources.

In a major move aimed to help India Inc. tide over the COVID-19 crisis, Sitharaman said companies can now directly list their securities in foreign jurisdictions.

The government is betting on these eight sectors to revive economic sentiments - coal, minerals, defence, civil aviation, power distribution companies in UTs, space and atomic energy.

The government will spend Rs 500 billion to ensure evacuation infrastructure in coal sector.

The aviation sector, reeling under massive losses, got a major boost with Sitharaman announcing that curbs on using Indian air space will be removed, thus reducing travel time.

A PPP mode facility will be established for irradiation tech for food and the startup ecosystem will be linked with the nuclear sector.

Note that unlike the previous stimulus packages, this one is no longer a tiny fraction of India's GDP.

This is the largest stimulus package ever announced by India.

At about 10.2%, it is among the biggest stimulus packages announced over the past few months by governments all around the world. This is evident in the chart below:

Now, executing the package while keeping India's long-term economic interests in mind is the way to go.

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

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