Sensex Trades Over 300 Points Lower; Dow Futures Down By 101

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

The BSE Sensex is trading down by 385 points, down 0.8% at 51,059 levels.

Meanwhile, the NSE Nifty is trading down by 103 points.

SBI Life and Adani Ports & SEZ are among the top gainers today. JSW Steel and HDFC are among the top losers today.

The BSE Mid Cap index trading up by 0.8%.

The BSE Small Cap index is trading up by 0.9%.

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

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

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down 103 points (down 0.8%) while Dow Futures are trading down by 101 points (down 0.3%)

The rupee is trading at 72.73 against the US$.

Gold prices are trading down 0.4% at Rs 44,783 per 10 grams.

Gold today extended its recent fall in Indian markets amid rising US bond yields. On MCX, gold futures fell 0.4% to 10-month low of Rs 44,768 per 10 grams. In the previous session, gold had dipped 1.2% or Rs 600 per 10 grams.

Note that after strong gains in 2020, gold has been under pressure so far this year amid a rally in equity markets and rising US bond yields. Gold is down over Rs 5,000 from the start of this year and Rs 11,500 from August highs of Rs 56,200.

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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