5 Reasons Why Sensex Plunged 740 Points Today

Many gold bulls are doubting the long term potential of gold as an investment.

In the latest Momentum Moves video, Brijesh Bhatia explains why he believes gold could test US$ 2,500 in COMEX and Rs 60,000 in the long-term.

As per Brijesh, the weekly chart of COMEX and MCX are both indicating a bullish scenario for gold and he believes there are four reasons why gold is an excellent buy here.

You can watch the video here: Gold: US$ 2,500 & Rs 60,000

In news from the financial markets, several companies have successfully raised fresh equity capital through qualified institutional placements (QIPs) over the past few weeks.

As per an article in Business Standard, at least five companies have already raised or are in the process of raising a cumulative Rs 93 billion via QIPs.

There have also been a number of secondary share sales, helping existing investors and promoters divest their holdings.

Existing investors or promoters have divested equity holdings worth Rs 142 billion through block transactions or offer for sale (OFS) this month.

The article stated that companies and mutual funds are making a dash before the end of the financial year to raise capital. The move will help shore up their balance sheets, impacted by the COVID-19 pandemic.

The list of companies raising fresh capital is dominated by financials and realty firms.

The largest block transaction this month was the sale of treasury shares in BPCL worth Rs 55.3 billion followed by Carlyle's 4.3% divestment in SBI Cards and Payment Services to raise Rs 39.4 billion.

In terms of QIPs, the largest was by Godrej Properties worth Rs 37.5 billion.

The deal pipeline this year has been underpinned by strong capital flows into the Indian stock market. Foreign portfolio investors (FPIs) have pumped in over US$ 8 billion into domestic stocks so far this calendar year.

How this trend pans out going forward remains to be seen. Meanwhile, we will keep you updated on the latest developments in this space.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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