Share markets in India are presently trading flat.

The BSE Sensex is trading up by 22 points, flat, at 52,340 levels.

Meanwhile, the NSE Nifty is trading up by 6 points.

Adani Ports & SEZ and Divi's Lab are among the top gainers today. JSW Steel and Tata Steel 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 1%.

On the sectoral front, stocks from the telecom sector, are witnessing most of the buying interest.

On the other hand, stocks from the power sector, are witnessing most of the selling pressure.

US stock futures are trading mixed today.

Nasdaq Futures are trading down by 29 points (down 0.2%) while Dow Futures are trading up by 15 points (flat).

The rupee is trading at 74.79 against the US$.

Gold prices are trading up by 0.5% at Rs 47,250 per 10 grams.

In global markets, gold prices were flat today as traders remained cautious ahead of US non-farm payroll data to be released later in the day. Spot gold rose 0.1% to US$ 1,778.3 per ounce.

Analysts say that the spread of the Delta covid variant is supporting gold at lower levels.

Amid flat global rates, gold prices edged higher in Indian markets. On MCX, gold futures were trading 0.3% higher at Rs 47,200.

Note that gold has been under pressure since the US Fed signaled an earlier-than-expected timeline for increasing interest rates. After a sharp correction last month, gold is down about Rs 9,000 from last year's record highs of Rs 56,200.

Moving on to stock-specific news...

Among the buzzing stocks, today is Aurobindo Pharma.

Shares of Aurobindo Pharma were up 4% on the BSE today after it announced the sale of its injectables unit to Eugia Pharma Specialities, a wholly-owned subsidiary of the company.

The transfer of the business undertaking will be done for a consideration of Rs 8.8 bn.

In an exchange filing, Aurobindo Pharma said -

• The slump sale is proposed with the objective of integration of Unit 4 along with other units in Eugia Pharma Specialities to improve operational synergy.
  
  Due to the specialization of this business and to bring greater focus and attention, the company is carving out the unit to Eugia.

The proposed slump sale will improve operational efficiency by creating a lean, competitive organization with a focus on faster decision-making for expedited growth, with a dedicated management team.

The company added that the independent entity, with all injectable assets consolidated under it, would enable the pursuit of growth opportunities with a self-sustaining capital structure.

The completion of the sale is estimated in the second quarter of the financial year 2022, subject to regulatory approval. The business transfer will be effective from 1 July 2021 onwards.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

At the time of writing, Aurobindo Pharma shares were trading up by 3.3% on the BSE.

Speaking of the current stock market scenario, note that the BSE Smallcap index touched its lifetime high recently.

Despite the index being up more than 160% since the March 2020 lows, Richa Agarwal, lead Smallcap Analyst at Equitymaster, believes smallcap stocks are set for a massive up move in 2021 and beyond.

Here's why...

As per Richa, the smallcap to Sensex ratio is a good metric to gauge while coming to some conclusions about relative valuations.

So, what is this indicator suggesting now?

As you can see from the chart below, the ratio currently stands at 0.46 times, as compared to the long-term average of 0.43 times.

Moving on to news from the automobile sector...

Hero Motocorp Shares Gain as Company Sells 1 m Units in June 2021 Quarter

Hero MotoCorp shares gained in early trade today after the company announced that it had sold 469,160 units of motorcycles and scooters in the month of June, taking the figures for the first quarter of the financial year 2022 to more than a million.

With the easing of lockdown restrictions, Hero MotoCorp expects sales in the coming months to be even more robust.

The two-wheeler sector in the Indian auto industry is regarded by many as the one to bounce back strongest from the effects of Covid-19's second wave.

While original equipment manufacturers (OEMs), across two and four-wheeler segments, have been reporting positive trends for the month of June, Hero MotoCorp has managed to shift to top gear.

The world's largest manufacturer of motorcycles and scooters sold 441,536 units of motorcycles in June and another 27,624 units of scooters last month.

With pent-up demand and the festive months ahead, Hero MotoCorp expects to fare even better and has informed us that almost all customer touchpoints are now operational.

Factors such as preference for personal mobility and a normal monsoon in most of the country could further improve sentiments for OEMs.

That said, the third wave of the pandemic is a possibility and most OEMs continue to tread a cautious part with careful optimism at best.

We will keep you posted on more updates from this space. Stay tuned.