Sensex Trades Marginally Lower, Dow Futures Up By 111 Points

Share markets in India are presently trading marginally lower.

The BSE Sensex is trading down by 67 points, down 0.1% at 52,522 levels.

Meanwhile, the NSE Nifty is trading down by 19 points.

Bajaj Finserv and Maruti Suzuki are among the top gainers today. Wipro and Adani Ports & SEZ are among the top losers today.

The BSE Mid Cap index is trading up by 0.3%.

The BSE Small Cap index is trading up by 0.2%.

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

On the other hand, stocks from the oil & gas sector, are witnessing most of the selling pressure.

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 41 points (up 0.3%) while Dow Futures are trading up by 111 points (up 0.3%).

The rupee is trading at 74.36 against the US$.

Gold prices are trading up by 0.2% at Rs 47,080 per 10 grams.

In domestic markets, gold futures were trading higher in early trade today tracking a positive trend in international spot prices.

International spot prices were up after US Federal Reserve Chair Jerome Powell promised not to raise interest rates too quickly.

Note that gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

Speaking of the precious yellow metal, 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...

As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.

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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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