Sensex Trades Higher; Yes Bank & Tata Steel Top Gainers

Share markets in India are presently trading on a positive note. Barring healthcare sector and power sector, all sectoral indices are trading in green with stocks in the telecom sectorbanking sector and metal sector witnessing maximum buying interest.

The BSE Sensex is trading up by 327 points (up 0.9%), while the NSE Nifty is trading up by 89 points (up 0.8%). The BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading on a flat note.

The rupee is trading at Rs 71.08 against the US$.

Speaking of stock markets in general, the market is typically focused on the most recent star performers.

You will often find the likes of HUL or HDFC Bank being the market darlings for never having a disappointing quarter.

But it is rare to find companies that thrive through most of their survival period.

Tanushree Banerjee shares few of her thoughts on this. Here's an excerpt of what she wrote in a recent edition of The 5 Minute WrapUp...

  • It is rare to find companies that survive for decades. It's even rarer to find ones that thrive through most of their survival period.

    So, if you do not wish to pay steep valuations for the market darlings, you need to look for the companies with history and consistency on their side.

    And they shouldn't be too conspicuous to the market either.

    I am talking of companies like Hawkins and City Union Bank. They have a track record of paying dividends for decades.

    The dividends such companies pay are especially helpful at a time when globally interest rates are headed lower.

And, as seen in the chart below, 'risk-free returns' from debt seem to have gone missing.

Inflation-Adjusted Risk-Free Returns Are Negligible Globally

Inflation Adjusted Risk Free Returns Are Negligible Globally

 

Moving on, market participants are tracking GMR Infra share priceHEG share price, and Indiabulls Real Estate share price as these companies are set to announce their June quarter (Q1FY20) results later today.

You can read our recently released Q1FY20 results: Tata SteelCummins IndiaSonata SoftwareHCL TechnologiesSiemensUltratech CementHPCLCiplaPage IndustriesCoal India.

In news from the commodities space, gold prices jumped 1% to US$ 1,512.5 an ounce as investors piled into safe haven assets like bullion, bonds and yen over concerns about a prolonged US-China trade war and global growth.

Silver prices in India surged Rs 2,000 to an all-time high mark of Rs 45,000 per kg. Silver rose to a three-year high on Tuesday, crossing Rs 44,000 per kg in Mumbai's spot market. It closed Rs 1,205 higher, at Rs 44,280 per kg, a price last seen in November 2016.

Strong safe-haven demand amid political tensions in Hong Kong and a weak Indian Rupee, which dropped to test 71.39 in futures, supported the bullion rally.

Reports state that Chinese traders have been betting on the gold-to-silver ratio, expecting silver will catch up with gold's or the ratio will fall.

Earlier, short-sellers on Shanghai-based exchanges who had sold silver have deposited the white metal in exchange warehouses with an intention to give deliveries. Silver price went up following short covering.

Speaking of silver, Vijay Bhambwani, editor of Weekly Cash Alerts, believes that silver is becoming an attractive commodity to own.

In the video, he goes on to give reasons about why silver will even beat gold in returns.

Here's more on Weekly Cash Alerts: Gold is RisingTrading GoldGold: Buy or Sell? India's No. 1 TraderHedge in Volatile Financial Markets.

Moving on to news from the auto-ancillaries sector, auto component major Bosch reported 35% decline in its consolidated net profit at Rs 2,799.5 million for Q1FY20, hit by the slowdown in the domestic automobile industry.

The company, which had posted a net profit of Rs 4,309.8 million for the same period last year said it has initiated several measures including manpower adjustments to remain competitive in the market.

In a regulatory filing, the company said, "we have initiated several transformation projects, including restructuring. The company has set up an additional provision of Rs 820 million towards reskilling and redevelopment".

Revenues declined to Rs 27,788.2 million from Rs 32,121.5 million in the year ago period. The company's non-automotive business posted a decline of 16%. This was primarily due to a drop in the energy services' business.

Company's automotive sales decreased 17.5% during the first quarter. Domestic sales decreased by 18.2% while export sales fell 8.6%.

Bosch share price is presently trading down by 1.8%.

 

To know more about the company, you can read  more

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