Sensex Trades Over 300 Points Higher; Dow Futures Trade Flat

Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 377 points, up 0.7% at 51,725 levels.

Meanwhile, the NSE Nifty is trading up by 112 points.

Asian Paints and SBI Life are among the top gainers today. Mahindra % Mahindra and Tata Motors 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 0.4%.

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

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

US stock futures are trading flat today.

Nasdaq Futures are trading down by 5 points (flat) while Dow Futures are trading flat.

The rupee is trading at 72.87 against the US$.

Gold prices are trading up by 0.3% at Rs 47,990 per 10 grams.

Gold prices edged higher in Indian markets today following a rebound in global rates. On MCX, gold futures gained 0.4% to Rs 48,038 per 10 grams after a strong surge over the past two sessions. In the previous session, gold had surged 1.3%, tracking a rebound in global prices as the yellow metal attracted increasing interest from dealers seeking out the safe haven.

Note that gold is seen as a hedge against an expected jump in inflation. Gold prices have been very volatile this year after hitting a record high of Rs 56,200 in August last year.

A stronger dollar and rising US Treasury yields have weighed on the precious metal this year after big gains last year. But, in global markets, gold has risen around 3% since hitting a two-month low on February 5, 2021, and was trading at US$ 1,841 an ounce.

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.

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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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