Sensex Falls 287 Points, Nifty Ends Near 17,600; Asian Paints & Power Grid Top Losers

Indian share markets witnessed negative trading activity throughout the day today and ended lower.

Benchmark indices suffered sharp losses for the third consecutive day amid weakness in Asian markets ahead of core sector data release.

At the closing bell, the BSE Sensex stood lower by 287 points (down 0.5%).

Meanwhile, the NSE Nifty closed lower by 93 points (down 0.5%).

Bajaj Finserv and Bajaj Finance were among the top gainers today.

Power Grid Corp and Asian Paints, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,602, down by 106 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 0.3% and 0.6%, respectively.

Sectoral indices ended on a mixed note with stocks in the banking sector, metal sector and telecom sector witnessing most of the selling pressure.

Realty and consumer durables stocks, on the other hand, witnessed buying interest.

hares of Canara Bank and Oil India hit their respective 52-week highs today.

Asian stock markets ended on a mixed note today as investors assessed the impact of skyrocketing energy costs on inflation and the pandemic recovery.

The Hang Seng ended down by 0.4%, while the Shanghai Composite ended up by 0.9%. The Nikkei ended down by 0.3% in today's session.

US stock futures are trading on a positive note today with the Dow Futures trading up by 166 points.

The rupee is trading at 74.22 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.1% at Rs 45,640 per 10 grams.

Speaking of the stock market, India's #1 trader, Vijay Bhambwani, shares how to pick the best hotel stocks, in his latest video for Fast Profits Daily.

Tune in to the video below to find out more:

In news from the banking sector, Indian Overseas Bank was among the top buzzing stocks today.

Stock of Indian Overseas Bank (IOB) zoomed 20% in early trade after the Reserve Bank of India (RBI) removed the bank from prompt corrective action framework (PCAF).

The RBI took the decision following improvement in various parameters and a written commitment that the state-owned lender will comply with the minimum capital norms.

On a review of the performance of the IOB, 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 RBI said.

The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, net non-performing assets (NPAs) and leverage ratio on an ongoing basis, it added.

The lender has also informed the RBI of the structural and systemic improvements that it has put in place, which would help the bank in continuing to meet these commitments.

Indian Overseas Bank was placed under the PCA framework in 2015.

IOB share price ended the day up by 11.2% on the BSE.

Moving on to news from the IT sector...

Tera Software Jumps 5% on Receiving Work Orders in Uttar Pradesh

Tera Software shares were locked at 5% upper circuit after the company received work orders worth Rs 4 bn.

Tera Software has got work orders worth Rs 4 bn from Dakshinanchal Vidyut Vitran Nigam (DVVNL) and Pashchimanchal Vidyut Vitran Nigam (PVVNL), the company said in the press release.

The company said it has signed agreements with DVVNL and PVVNL for the aforesaid work orders for door-to-door meter reading, on spot bill generation, bill distribution and bill collection in cluster-5 (Agra-1, Agra-2 and Aligarh distribution zones of DVVNL) and in cluster-1 (Meerut, Saharanpur and Noida distribution zones of PVVNL) for total 5.6 m consumers in the state of Uttar Pradesh.

The share touched a 52-week high of Rs 85 and a 52-week low of Rs 25.1 on 19 July 2021 and 6 October 2020, respectively.

Tera Software share price ended the day up by 5% on the BSE.

Speaking of the current stock market scenario, note that the BSE smallcap index has surged around 180% since the crash in March 2020.

Despite the index being up more than 1.8 times, Richa Agarwal, lead Smallcap Analyst at Equitymaster, believes smallcap stocks are set for a massive up move in 2021 and beyond.

Here's why...

The Smallcap to Sensex ratio, a metric referred to get a sense of relative valuations, currently stands at 0.48 times. To be sure, this is higher than a median of 0.43 times.

And yet, it's the lowest of all the peaks in the smallcaps so far. In the last cycle which peaked in January 2018, when the ratio touched 0.49, the peak was still 9 months away.

Here's what Richa wrote in a recent edition of Profit Hunter...

  • When it comes to buying smallcap stocks, especially at this point in the rebound rally, you will need a bottom up approach, and a long term horizon.

    In fact, if you don't have the stomach to withstand a 20%-30% kind of corrections and volatility, this space may not be for you at all. And you should stop reading right here.

As per Richa, smallcaps are a great opportunity to make some big returns. But you need to stay disciplined when it comes to allocating money. And you need to be sharp when picking the right stocks.


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