Sensex Ends 215 Points Down; Realty & Power Stocks Fall

Indian share markets ended sharply lower after the rally in previous week. At the closing bell, the BSE Sensex finished lower by 215 points. While, the NSE Nifty finished lower by 68 points. Meanwhile, the S&P BSE Midcap Index ended down by 0.8% while S&P BSE Small Cap Index ended up by 0.6%.

Barring IT stocks & metal stocks, all sectoral indices ended the day in red with power stocks and realty stocks leading the losses.

Overseas, Asian stock markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.1%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.7% and 0.1% respectively. European markets finished broadly higher on Friday with shares in France leading the region. The CAC 40 is up 1.24% while Germany's DAX is up 0.95% and London's FTSE 100 is up 0.31%.

The rupee was trading at Rs 67.05 against the US$ in the afternoon session.

During FY18, while the BSE-Sensex has increased marginally so far, the mid and small cap indices have fallen between 10% and 12%.

Uncertain Times for the Benchmark Index

 

But that's just the indices. Individual mid and small caps have fallen much more.

The steep fall in these indices is due to several reasons.

First, there has been some profit-booking in the mid and small cap space. After all, these indices were sharp outperformers in 2017. Second, rising crude oil prices and a falling rupee have taken a toll.

And third, there is some pressure in this space due to the re-alignment of investments by mutual fund managers prompted by the recent changes in regulation.

In such an environment, it makes sense for investors to be selective while buying stocks. Focus on value and the underlying fundamentals of the business. Then, they need not worry about the market.

So, what is key to identifying potential multibagger stocks? How does one pick them at the right time and ride them to their full potential? How many multibaggers do you really need to achieve the big riches that you desire?

Most importantly, are there any stocks right now that could turn out to be multibaggers? Click here to know everything that you need to know right now about mutlibagger stocks...

In the news from the pharma sector. As per an article in a leading financial daily, Lupin has launched Methylergonovine Maleate Tabs USP, 0.2 mg, having received an approval from the United States Food and Drug Administration (USFDA) earlier.

Methylergonovine Maleate Tabs USP, 0.2 mg, had annual sales of approximately US$71.5 million in the US (IQVIA MAT April 2018).

Lupin's Methylergonovine Maleate is the generic equivalent of Novartis Pharmaceuticals Corporation's Methergine. It is indicated for the prevention and control of postpartum hemorrhage.

Speaking of pharma sector, did you know the BSE Healthcare Index is down 20% over the past three years? During the same period, the BSE Sensex is up 21%.

And this was a sector they called 'evergreen'.

Have Investors boarded a plane that's about to crash? Or is it just turbulence on the way to a smooth and safe landing?

It's important to understand the core issues. Regulatory problems for pharma companies have increased over the past few years. The frequency of visits as well as quality expectations have increased a lot.

While we expect the pain to continue in the short-term, the long-term picture still looks bright.

Stricter norms and pricing pressure will ensure only quality players remain. Companies with strong R&D facilities and quality compliant plants will have an edge over the others.

Lupin share price closed the day up by 1.2% on the BSE today.

To know more about the company, you can access to Lupin's latest result analysis and Lupin stock analysis on our website.

And to get more updates on share market, click here.

In the news from the economy. In a big relief, the country's Fiscal Deficit, the difference between total revenue and expenditure, has improved in the first month of the current financial year 2018-19, on the back of higher revenue and lower expenditure.

As per the latest data released by the controller-general of accounts (CGA), April's fiscal deficit was at 24.3% of the budget estimates, as against 37.6% for the same period of the last fiscal year.

The report further showed that the revenue receipts received during April 2018 to the government was worth Rs 714.5 billion (3.9% of corresponding budget estimates for 2018-19 for total receipts).

Out of this amount, Rs 575.3 billion from tax revenue, while Rs 131.2 billion from non-tax Revenue and Rs 7.9 billion of non-debt capital receipts. Non-Debt Capital Receipts consists of Recovery of Loans (Rs 3.6 billion) and PSU disinvestment (Rs 4.3 billion).

Further, the government's spending stood at Rs 2234.2 billion (9.2% of corresponding budget estimates 2018-19) in the first month of the current financial year. Out of this, over Rs 1.8 trillion is on Revenue Account and Rs 467 billion is on Capital Account.