Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the information technology sector and consumer durables sector witnessing maximum buying interest. While energy stocks & metal stocks are trading in red.
The BSE Sensex is trading up by 87 points (up 0.3%), and the NSE Nifty is trading up by 13 points (up 0.1%). Meanwhile, the BSE Mid Cap index is trading up by 0.1%, while the BSE Small Cap index is trading up by 0.2%. The rupee is trading at 65.13 to the US$.
Engineering stocks are trading on a mixed note with Jindal Drilling & Jyoti Structures leading the gainers. As per an article in a leading financial daily, Bharat Electronics (BEL) has signed a Memorandum of Understanding (MoU) with Larsen & Toubro. The MoU is to share their expertise in design, development, engineering, and manufacturing to develop and produce products and systems to meet the requirement of the defense services as well as for export markets.
Reportedly, BEL and L&T have agreed to explore and address defense products/systems for the Indian Defence Services as well as export opportunities.
BEL has expertise in design, development, engineering, manufacture of Radar & Weapon Systems, Electronic Warfare & Avionics, Naval Systems, Electro-optics products, Tank Electronics & Gun Systems, while L&T has expertise in design, engineering and manufacture of Defence systems, Platforms and Weapon delivery, Armoured platforms, and Fire control systems, Military Communication, Naval Equipment, Warships & Submarines.
The MoU sets to define the roles and responsibilities of both the companies to cooperate and work in partnership mode for select programmes and thus give a boost to indigenous defense production.
Further, this collaboration will support the Make in India mission, the reports noted.
Whether, this deal with BEL provides a cushion to L&T's profitability will be an interesting thing to watch out for going forward.
At the time of writing, L&T share price was trading down by 0.2%.
In another development, gold prices surged by another Rs 405 per 10 grams to reclaim the Rs 31,000 mark at the domestic bullion market here today following persistent demand from jewelers and traders on the back of bullish global cues.
Silver too climbed by Rs 415 per kg owing to sustained offtake by industrial users.
The sentiment remained upbeat on positive global cues as the dollar index hovered near two-week lows, with markets also awaiting cues on the outlook for US monetary policy from consumer inflation data and minutes from the Federal Reserve's March meeting.
Gold is perceived as a safe store of value during times of political and financial uncertainty.
Standard gold (99.5 purity) jumped by Rs 405 to close at Rs 31,095 per 10 grams from Tuesday's closing of Rs 30,690.
Globally, gold rose for the fourth day yesterday as concerns over escalating tensions in Syria, US sanctions on Russia and the US-China trade stand-off weighed on stock markets and helped knock the dollar index to a two-week low.
The metal reached its strongest in a week as appetite for nominally lower-risk assets sharpened.
Spot gold was up at US$ 1,345.8 an ounce in early European trade, while US gold futures were trading higher at US$ 1,349.10 an ounce. Among other precious metals, silver was up 0.1% at US$ 16.6 an ounce.
Gold Returns : 2013 - 2017
Notably, returns from gold have been anything but flattering. Mainly a hedge against market volatility, gold prices have remained at roughly the same levels since 2013.
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