Share markets in India are presently trading marginally higher.
The BSE Sensex is trading up by 154 points, up 0.3%, at 58,284 levels.
Meanwhile, the NSE Nifty is trading up by 43 points.
Eicher Motors and Reliance are among the top gainers today. IOC and ONGC are among the top losers today.
The BSE Mid Cap index is trading up by 0.4%
The BSE Small Cap index is trading up by 0.6%.
On the sectoral front, stocks from the real estate sector are witnessing most of the buying interest.
On the other hand, stocks from the energy sector are witnessing most of the selling pressure.
US stock futures are trading higher today, indicating a positive opening for Wall Street.
Nasdaq Futures are trading up by 37 points (up 0.3%) while Dow Futures are trading up by 43 points (up 0.1%)
The rupee is trading at 73.08 against the US$.
Gold prices are trading down by 0.1% at Rs 47,496 per 10 grams.
Gold prices in India edged lower today after strong gains in the previous session.
On MCX, gold futures were down 0.2% to Rs 47,451 per 10 grams after surging to a one-month high in the previous session. In the previous session, gold had surged Rs 500 per 10 grams in line with firming global rates after disappointing US jobs data.
In global markets, gold prices today were steady near a two-month high after a disappointing U.S. jobs data signaled that the Federal Reserve could push back the timeline for tapering stimulus measures.
The spot price of bullion hovered near US$ 1,826.7 per ounce.
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.
Moving on to stock-specific news...
Among the buzzing stocks, today is Ashoka Buildcon.
Shares of Ashoka Buildcon rose over 2% on the BSE in early trade today after the company said it has received a contract for upgrading a part of the national highway NH-19 in West Bengal.
In an exchange filing, the highway developer said,
- Ashoka Buildcon is pleased to announce that the company has received a Letter of Award (LoA) from Adani Road Transport for the project 'Execution of civil and associated works on engineering, procurement and construction (EPC) basis of six-laning of National Corridor NH-19 from Pangarh to Palsit in the State of West Bengal'.
The EPC contract is worth Rs 15.7 bn.
Ashoka Buildcon reported a consolidated net profit of Rs 802 m for the June 2021 quarter against a loss of Rs 279 m in the year-ago period.
The company has seen execution and toll collections improve since June 2021 with the easing of lockdown restrictions. The outlook is further supported by a strong order book.
The company has bagged order inflows worth Rs 30 bn so far in the financial year 2022. It is targeting orders worth another Rs 40 bn.
Moving on to news from the energy sector...
Petronet LNG to Make Foray Into Petchem Business
Petronet LNG, India's largest gas importer, plans to set up a petrochemical complex at Dahej in Gujarat as it looks to make a foray into the high margin business to hedge gas trading risks.
The foray into petrochemicals is a part of the company's strategy to diversify its business. The project will also synchronize its upcoming third jetty project and available land bank at Dahej.
In terms of volume, the petrochemical market in India is estimated to reach 49.6 million tonnes (MT) by 2025 at a compound annual growth rate (CAGR) of 6.1% from 2021-25, which the company stands to benefit from.
The company is also exploring the possible business opportunities from harnessing cold energy from its regasification terminals at Dahej and Kochi.
Harnessing LNG's cold energy not only maximizes re-gasification terminals' potential but also offers an opportunity to cut emissions in the cold warehousing chains simultaneously adding value and improving energy efficiency.
Petronet is in the process of obtaining the final investment decision for the project. However, it has not given any timelines with respect to the implementation.
How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.
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