Sensex Trades In Green; Bajaj Auto & Hero MotoCorp Top Gainers
Share markets in India are presently trading on a positive note, tracking firm cues from global markets.
The BSE Sensex is trading up by 183 points, up 0.6%, while the NSE Nifty is trading up by 65 points.
The BSE Mid Cap index is trading up by 1.5%, while the BSE Small Cap index is trading up by 1.3%.
On the sectoral front, gains are largely seen in the automobile sector, metal sector, and the banking sector.
The rupee is trading at 75.77 against the US$.
Moving on, market participants are tracking Bajaj Finserv share price, Hawkins Cookers share price, and Colgate Palmolive share price as these companies are scheduled to announce their March quarter results (Q4FY20) later today.
In news from the commodity space, domestic gold prices edged lower today for the first time in three days. On (Multi Commodity Exchange MCX), June gold futures fell 0.6% to Rs 46,845 per 10 grams.
Tracking gold, silver futures slumped 1.6% to Rs 48,255 per kg.
Last week, gold prices had hit a new high of Rs 47,980 tracking rally in global rates amid increasing US-China tensions and expectations of further stimulus from central banks.
In global markets, gold prices eased today but losses were capped amid US-China tensions.
Spot gold slid 0.6% to US$ 1,738.97 per ounce. US gold futures slipped 0.6% to US$ 1,740.80.
The US Senate passed a bill that could bar some Chinese companies from listing on American exchanges.
Earlier this week on Monday, gold rallied to its highest since October 2012, driven by economic damage concerns, US-China tensions, and massive monetary and fiscal stimulus.
Speaking of gold, how lucrative has gold been as a long-term investment in India?
The chart below shows the annual returns on gold over the last 15 years...
Gold Has Been a Shining Long-Term Investment
As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.
Also speaking of gold, note that the interest in gold has gone up ever since stock markets crashed in March. Gold prices in the international markets are getting close to its all-time high.
But bitcoin has been on an up move too. Its price in dollars has almost doubled in the last two months.
Moving on to news from the pharma sector, Strides Pharma Science has obtained regulatory approval to conduct clinical trials of antiviral drug favipiravir, a potential treatment for COVID-19.
The company has received approval from the Drug Controller General of India to conduct trials of favipiravir in the country.
Strides Pharma Science share price is presently trading up by 1.2%.
In other news, JB Chemicals share price is in focus today. US private equity giant KKR & Co. Inc. has emerged as the front-runner to buy a 51% stake in JB Chemicals, which manufactures popular over-the-counter drugs rantac and metrogyl.
Reportedly, the proposed acquisition, which would include an open offer, could cost Rs 25-30 billion in an all-cash deal that is likely within a month.
Rothschild and Co. have been appointed merchant banker by JB Chemicals for the proposed stake sale.
For the past few months, the Mumbai-based pharma company had been discussing the majority stake sale with several private equity players.
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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