Sensex Ends 411 Points Higher; Realty and Banking Stocks Rally

Fri, 27 Dec Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   12:30 pm   

   Podcast   

Indian share markets moved sharply higher today, buoyed by strong global markets. Positive developments on the US-China trade deal front and fund infusion in some PSU banks by the government boosted sentiment.

Gains were largely seen in the realty sector, banking sector and energy sector.

At the closing bell, the BSE Sensex stood higher by 411 points (up 1%) and the NSE Nifty closed higher by 119 points (up 1%).

The BSE Mid Cap index ended up by 0.9%, while the BSE Small Cap index ended the day up by 0.8%.

Asian stock markets finished on a mixed note as of the most recent closing prices. The Hang Seng was up 1.3% and the Nikkei was down 0.4%. The Shanghai Composite stood lower by 0.1%.

The rupee was trading at 71.34 to the US$ at the time of writing.

In news from the banking sector, shares of public sector banks (PSBs) witnessed buying interest today on expectation that the banks would benefit from lower yields on government bonds.

Punjab & Sind Bank, Bank of Baroda and Punjab National Bank (PNB) gained more than 4% intraday, while Canara Bank, Union Bank of India, State Bank of India (SBI) and Indian Bank were up in the range of 2%-3%.

On Thursday, the Reserve Bank of India (RBI), in a notification, said that it will purchase 10-year bonds worth Rs 100 billion, while simultaneously sell four bonds maturing in 2020 for up to the same amount on Monday, December 30 in the open market.

Earlier this week, the central bank had conducted a similar open market operation (OMO) and purchased securities worth Rs 100 billion and sold worth Rs 68.3 billion.

The RBI further said it reserves the right to accept or reject any or all the bids or offers either wholly or partially without assigning any reasons.

In other news, rating agency ICRA said overall net non-performing assets (NPAs) of the banking sector are likely to improve to 3.2-3.3% by the end this fiscal from 3.7% in September 2019, aided by better recoveries and declining slippages.

In a report, the rating agency said that bank credit is expected to expand at a muted 6.5-7% in FY19-20. This will be the lowest in 58 years, mainly on account of lower working capital requirements by companies and risk aversion among lenders.

According to ICRA, even in a high-growth scenario, wherein the second half of FY20 sees the incremental bank credit rise to Rs 6.5-7 trillion, there will still be a 40-45% year-on-year (YoY) decline.

According to ICRA's assessment of 37 scheduled commercial banks, the YoY credit growth was 7.9% as of September 2019. While credit growth in public sector banks was 4.4%, private banks registered 15% growth in the same period.

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

Moving on to news from the commodity space, Gold prices in India continued to rise today despite muted global rates.

Extending gains to the fourth day in a row, gold future prices rose 0.1% to Rs 38,926 per 10 gram on the MCX. At day's high, it touched Rs 38,980.

During this four-day rally, gold prices are up about Rs 1,000 per 10 gram.

However, Silver saw some profit-taking after the recent run-up. Silver had rallied Rs 1,700 per kg in just three days.

In global markets, prices slipped after recent rally as rising risk appetite buoyed by optimism over an interim US-China trade deal hurt the safe haven appeal of gold.

Gold prices are up nearly 18% so far this year, lifted by a 17-month long tariff war between the US and China.

Speaking of gold, 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...

Gold Has Been a Shining Long-Term Investment

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

Here's what Ankit Shah wrote about this in one of the editions of The 5 Minute WrapUp...

• "In fact, gold has delivered double-digit gains in 10 of the last 15 years.
  
  During the entire 15-year period, gold has shot up 555% (compounded annual return of 12.1%).
  
  During the same period, the Sensex surged 511% (compounded annual return of 12.0%). If you include dividends, the Sensex returns would be higher than gold by a couple of percentage points.
  
  One must note that the Sensex returns are not representative of the broader market returns. Moreover, gold was a no-brainer. You didn't have to study financial statements, business models and forecast future earnings growth to get a double-digit return on your investment."

Meanwhile, Vijay Bhambwani talks about how gold has been relied upon by humankind for 3000 years in one of his videos.

If you consider street inflation, your fixed deposits are giving negative yields. In times like these, Vijay considers gold as a safe haven.

So, is it the time to buy gold?

Tune in to find out...

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