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

1 2
View single page >> |

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

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.