Sensex Trades Lower; Tata Steel & Maruti Suzuki Top Losers

Share markets in India are presently trading on a negative note, tracking a selloff in global equities amid rising concerns over Chinese coronavirus epidemic.

Barring IT stocks, all sectoral indices are trading on a negative note with stocks in the metal sector, auto sector and telecom sector witnessing most of the selling pressure.

The BSE Sensex is trading down by 355 points (down 0.9%), while the NSE Nifty is trading down by 112 points (down 0.9%).

The BSE Mid Cap index is trading down by 0.2% and the BSE Small Cap index is trading down by 0.3%.

The rupee is trading at Rs 71.83 against the US$.

In news from the commodity space, a weaker rupee and a sharp rise in global rates pushed domestic gold prices to new highs today. April gold futures jumped 0.9% to Rs 43,036 per 10 gram.

Last week, prices had surged about Rs 1,800 per 10 gram.

Tracking gold, silver prices also moved higher. Silver futures on MCX rose 0.64% to Rs 48,615 per kg.

The rupee fell to 71.89 against the US$ today, tracking weakness in other Asian currencies.

In global markets, gold prices jumped over 2% today to their highest in over seven years as a spike in coronavirus cases outside China pushed investors towards bullion, which is considered a safe-haven in times of uncertainty. Spot gold rates rose to as much as US$ 1,678.58 an ounce.

South Korea, Italy and Iran reported a sharp spike in infections, although the total number of cases outside China remains relatively small.

Note that the investment demand for gold has seen an uptick. As per a leading financial daily, holdings in gold-backed exchange traded funds climbed for 22 straight sessions through Thursday, the longest ever run.

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

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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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