Share markets in India are presently trading marginally lower. Sectoral indices are trading mixed with stocks in the power sector and oil & gas sector witnessing maximum selling pressure.
The BSE Sensex is trading down by 107 points (down 0.3%), while the NSE Nifty is trading down by 41 points (down 0.4%). The BSE Mid Cap index is trading down 0.4%, while the BSE Small Cap index is trading down by 0.2%.
The Rupee is trading at 73.06 to the US$.
In the news from the commodity space, crude oil is witnessing selling pressure today as the start to US sanctions against Iran's fuel exports was softened by waivers that will allow major buyers to still import Iranian crude.
Prices came under pressure as it became clear that Washington was allowing several countries to continue importing crude from Iran despite the sanctions.
The US said on Friday it will temporarily allow eight importers to keep buying Iranian oil.
Speaking of crude oil, almost every time a rise or fall in the stock markets is invariably linked to crude oil prices.
Logically, it seems right too. The rise in crude oil increases input costs for dependent firms. It also means rising inflation. Rising inflation means rising interest rates.
It also puts pressure on the government to cut excise duty, thereby impacting its revenues. We have already seen that happening. After all, there is an election year coming up.
But has it really affected the stock markets?
Are Stock Market Returns Really Linked to Crude Oil Prices?
In the latest developments from the results corner, Axis Bank has reported 82.6% rise in its net profit at Rs 78.9 billion for the quarter ended September 30, 2018 as compared to Rs 43.2 billion for the same quarter in the previous year.
Axis bank share price is trading up by 2.9% on the BSE.
Cipla, Fortis Healthcare, GAIL, PNB Housing, Power Grid, IGL, Inox Wind, Majesco, Natco Pharma, Sheela Foam and Tata Jewels, are also among the companies that are set to announce their quarterly results today.
You can read our recently released Q2FY19 result analysis of the following companies: Asian Paints, TVS Motors, Wipro, Ambuja Cement, HDFC Bank, Infosys and more.
Moving on to the news from the IPO space, Hyderabad based Penna Cement filed for a Rs 15.5 billion initial public offering (IPO) with the markets regulator on Saturday, to raise funds for expansion and paying off debt.
The IPO will consist of a fresh issue of Rs 13 billion and an offer for sale of up to Rs 2.5 billion by the company's promoter PR Cement Holdings.
With so many IPOs set to hit the markets, we believe a merit-based selection, primarily including valuation, business, and management quality, is the logical way to go about investing in IPOs.
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