Sensex Jumps Over 500 Points, Dow Futures Up by 293 Points

Mon, 4 Oct 12:30 pm

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Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 521 points, up 0.9%, at 59,286 levels.

Meanwhile, the NSE Nifty is trading up 145 points.

Mahindra & Mahindra and JSW Steel are among the top gainers today. Bajaj Finserv and NTPC are among the top losers today.

The BSE Mid Cap index is trading up by 1.2%

The BSE Small Cap index is trading up by 1.5%.

On the sectoral front, barring the consumer durables sector, all sectors are trading in green with stocks from the real estate sector witnessing most of the buying interest.

US stock futures are trading mixed today.

Nasdaq Futures are trading down by 100 points (down 0.7%) while Dow Futures are trading up by 293 points (up 0.9%).

The rupee is trading at 74.27 against the US$.

Gold prices are trading flat at Rs 46,283 per 10 grams.

Gold prices inched higher in Indian markets in early trade today. On MCX, December futures were trading higher by 0.2%.

Gold prices had edged higher on 1 October as a slight dip in US bond yields provided support against growing expectations of quicker-than-expected US interest rate hikes that also pushed the dollar to a multi-month high.

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.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Moving on to stock-specific news...

Among the buzzing stocks today is NTPC.

Shares of public sector power giant NTPC gained nearly 3% in early trade today after it said it plans to raise Rs 150 bn by 2024 through the listing of its three units - NTPC Renewable Energy, North Eastern Electric Power Corp (NEEPCO) and NTPC Vidyut Vyapar Nigam.

The company plans to sell shares in NTPC Renewable Energy within a year and list Neepco and NTPC NVVN by March 2024.

NTPC Renewable Energy will have a minimum of 10 gigawatts (GW) of generation capacity by the time it is listed.

Note that NTPC has rallied over 22% in the month of September. It was also the top gainer during the month.

The company is poised to benefit from the rapid expansion of its renewable energy (RE) portfolio and steady earnings from its existing coal assets.

NTPC has been very competitive in bidding for the majority of RE projects lately. It has doubled its RE portfolio in the last 18 months, with 7GW of projects currently either commissioned, under implementation or bid successfully.

The company recently won 1.9 GW in the auction of CPSU Scheme-II (tranche-III of 5GW).

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, NTPC shares were trading up by 3.2% on the BSE.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani, talks about a big economic agreement that India and the UAE are close to signing, in his latest video for Fast Profits Daily.

In the video below, Vijay shares why such an agreement will trigger a boom in India and why it's positive for the market.

Moving on to news from the pharma sector...

Cipla to Sell Lilly's Diabetes Treatments in India 

Pharma major Cipla has signed a deal with Eli Lilly to sell and distribute two of the US drugmaker's best-selling diabetes treatments in the country.

Lilly will transfer its rights in India to sell, promote and distribute its Trulicity and Humalog products, while continuing to maintain its existing operating model for the remaining portfolio of its products.

The deal will allow Cipla to expand access to the drugs in the country with the second-highest number of diabetic people in the world. India has more than 70 m adults with diabetes.

Trulicity, a once-weekly shot to control blood sugar through the week, is Lilly's best-selling drug that raked in sales of US$ 1.5 bn in the second quarter. Its Humalog, a fast-acting insulin injection, is also a key part of its diabetes portfolio.

Luca Visini, Lilly's managing director for the Indian subcontinent said,

• Developing strategic partnerships to adopt different operating models is the key to make innovative medicines available to more people in India.

Cipla has a strong local footprint and is well established to expand access to (Trulicity and Humalog) around India.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

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