Share markets in India are presently trading marginally lower.
The BSE Sensex is trading down by 96 points, down 0.2%, at 58,154 levels.
Meanwhile, the NSE Nifty is trading down by 31 points.
ONGC and Nestle India are among the top gainers today. SBI Life and UltraTech Cement are among the top losers today.
The BSE Mid Cap index is trading up by 0.1%.
The BSE Small Cap index is trading up by 0.3%.
On the sectoral front, stocks from the power sector are witnessing most of the buying interest.
On the other hand, stocks from the real estate sector are witnessing most of the selling pressure.
US stock futures are trading lower today, indicating a negative opening for Wall Street.
Nasdaq Futures are trading down by 51 points (down 0.3%) while Dow Futures are trading down by 146 points (down 0.4%)
The rupee is trading at 73.70 against the US$.
Gold prices are trading down by 0.3% at Rs 46,886 per 10 grams.
Gold prices fell in Indian markets today amid weak global cues but a weaker rupee capped losses. On MCX, gold futures were down near a three-week low of Rs 46,925 per 10 grams.
In global markets, gold fell to near a two-week of US$ 1,787.8 per ounce as a stronger US dollar hurt the safe-haven appeal of gold.
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 UCO Bank.
Shares of UCO Bank rallied as much as 16% on the bourses in early trade today after the Reserve Bank of India (RBI) removed the state-owned lender from its PCA watchlist. The RBI removed the bank from its Prompt Corrective Action Framework (PCA) following improvement in various parameters and a written commitment that the lender will comply with the minimum capital norms.
In a statement, the RBI said,
- On a review of the performance of UCO Bank, the board for financial supervision on the basis of the published financial results for 2020-21 found that the bank was not in breach of the PCA parameter.
The Kolkata-based lender has also provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA (non-performing assets), and leverage ratio on an ongoing basis.
It has been under PCA since May 2017.
The restrictions disable banks in several ways to lend freely and force them to operate under a restrictive environment that turns out to be a hurdle to growth.
UCO Bank has widely underperformed the broader market, gaining merely 10% in the last year compared to a 52% rise in the Sensex.
We will keep you posted on more updates from this space. Stay tuned.
At the time of writing, UCO Bank shares were trading up by 10.6% on the BSE.
Moving on to news from the power sector...
Jindal Steel and Power Prepays US$ 106 m Debt for Australian Arm
Jindal Steel and Power (JSPL) has made a pre-payment of US$ 106 m (about Rs 7.8 bn) to the lenders of its arm Jindal Steel & Power (Australia).
Without sharing further details, the steelmaker said the prepayment has helped the company reduce the debt by approximately 50&.
The company is now aiming to clear all its overseas debt in the coming quarters.
JSPL Managing Director V R Sharma said,
- We are paying back to lenders before time in order to strengthen our balance sheet. The company is aligned with the India growth story and we want to become a net debt-free company by the financial year 2023 through accelerated deleveraging.
Part of the OP Jindal Group, JSPL has a presence in steel, power, and mining sectors. The company has made investments worth US$ 12 bn (Rs 900 bn) across the globe.
How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.
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