Indian share markets witnessed buying interest during closing hours today and ended marginally lower.
At the closing bell, the BSE Sensex stood lower by 11 points (down 0.03%). The NSE Nifty closed lower by 21 points (down 0.19%).
The SGX Nifty was trading at 11,176, down by 52 points at the time of writing.
The BSE Mid Cap index ended down by 0.6%. The BSE Small Cap index ended down by 0.2%. On the sectoral front, losses were largely seen in the banking sector and metal sector.
Asian markets ended on a negative note. As of the most recent closing prices, the Hang Seng ended down by 2.2% and the Shanghai Composite stood lower by 3.8%. The Nikkei ended down by 0.6%.
The rupee was trading at 74.80 against the US$.
Moving on, IndusInd Bank was among the top buzzing stocks today.
IndusInd Bank share price witnessed huge buying interest today after the Reserve Bank of India (RBI) granted approval to an existing investor, Route One, to increase stake in the private sector lender.
Route One Investment Company LP, USA (ROIC) is an existing investor, holding approximately 4.96% of the issued and subscribed capital of the bank.
ROIC has approached the RBI seeking prior approval to increase its stake in the bank up to 10%.
In reference to this, IndusInd Bank in a BSE filing said that basis reference from RBI, the board of directors of the Bank, on July 5, granted its approval to the proposed acquisition of Route One Investment Company, LP in our Bank.
It added that the RBI has forwarded the Bank a copy of the letter addressed to ROIC, granting approval for increasing their shareholding up to 10% of the paid-up voting equity capital of the bank.
How this development pans out remains to be seen. We will keep you updated on all the news from this space. Stay tuned.
Domestic gold prices hovered near their all-time highs today. The active gold contract on MCX rose to Rs 50,925 level during the session. This was inches away from their record high of Rs 50,936 witnessed yesterday.
Gains were seen as political tensions and concerns about global growth buoyed the demand for safe-haven assets.
International gold prices were also edging closer to its record high of US$ 1,911 an ounce hit in August 2011. Prices traded near US$ 1,900 an ounce on the back of increasing signs that the prolonged coronavirus pandemic is stalling economic recovery.
With today's gains, gold is heading for a seventh weekly gain, the longest stretch since 2011, while silver is poised for its biggest weekly advance in about four decades.
Investors in India are also seen flocking to sovereign gold bonds, which in the fourth tranche saw over 4 tonnes of gold equivalent being subscribed. Gold exchange traded funds (ETFs) are also witnessing increased buying interest with the net inflow in June being at Rs 4.9 billion while net assets under management (AUM) as on June end were at Rs 108.5 billion.
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.
So, is this the right time to buy gold or silver? And how can one go about investing in this precious metal?
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