Sensex Trades on a Volatile Note; Dow Futures Up by 91 Points

Wed, 11 Nov 12:30 pm | Ayesha Shetty, TM Team

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Share markets in India are presently trading marginally higher.

The BSE Sensex is trading up by 10 points, flat at 43,287 levels.

Meanwhile, the NSE Nifty is trading up by 33 points.

Hindalco and Hero MotoCorp are among the top gainers today. IndusInd Bank and Reliance are among the top losers today.

The BSE Mid Cap index is trading up by 0.2%

The BSE Small Cap index is trading down by 0.1%

On the sectoral front, stocks from the energy sector are witnessing most of the selling pressure.

On the other hand, stocks from the automobile sector are witnessing most of the buying interest.

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

Nasdaq Futures are trading up by 47 points (up 0.4%), while Dow Futures are trading up by 91 points (up 0.3%).

The rupee is trading at 74.26 against the US$.

Gold prices are trading flat at Rs 50,460 per 10 grams.

Gold prices edged lower today in domestic markets tracking muted global trends. In global markets, gold prices inched higher on hopes of more stimulus measures as surging coronavirus cases in many parts of the world clouded the economic outlook. But optimism over Covid-19 vaccine developments limited gains.

To know more about gold, visit our YouTube Playlist on gold investing.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani talks about how the market told him that Joe Biden would win the US elections, in his latest video for Fast Profits Daily.

In the video below, Vijay shares his 360 degree worldview approach to trading and how this process hinted at a change in US politics a few months ago.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is SBI.

In a statement to the stock exchanges, State Bank of India (SBI) said its board of directors has approved to divest 8,510 equity shares constituting 8.5% in UTI Trustee Company to comply with stock market regulations.

Note that according to the regulation, no sponsor of a mutual fund, its associate or group company can have 10% or more of the shareholding or voting rights in the asset management company (AMC) or trustee company of any other mutual fund.

REVEALED: How to Unlock Almost 3x More Gains Post the Corona-Crisis...

The other shareholders of UTI Trustee include LIC and Bank of Baroda. All the public sector companies together hold 18.2% stake in UTI Trustee Company.

US based investment management company T Rowe owns the highest stake of 26% in the Trustee company and plans to raise it to 51% by acquiring existing shareholders.

Earlier, the market regulator had directed LIC, SBI and Bank of Baroda to divest the stake in UTI Asset Management Company to below 10% from 18.2% and this was complied through the recent initial public offering.

This apart, the three public sector companies were also told to divest their stake in sponsor company UTI Trustee.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

At the time of writing, SBI share price was trading up by 1.1% on the BSE.

Moving on to news from the mining sector...

NMDC Board Nod for Buyback of Shares

Mining major National Mineral Development Corporation (NMDC) will buy back more than 131.1 million equity shares at Rs 105 apiece.

The offer price is almost 12% premium to the November 10 closing price of Rs 94 on the BSE.

NMDC said the board had approved the buy-back of not more than 131.1 million shares (of face value of Rs 1), representing 4.3% of the fully paid-up equity shares, at Rs 105 each. The aggregate should not exceed Rs 13.8 billion.

NMDC has set November 23 as the record date.

This would be the third buy-back by the public sector mining major since 2016. During the previous such exercise it undertook in February 2019, NMDC bought back more than 102 million shares at Rs 98 each. The aggregate consideration was not more than Rs 10 billion. In September 2016, the buyback was for up to 800 million shares at Rs 94 each for an aggregate amount not exceeding RS 75.2 billion.

As on November 6, the Centre, through the President of India, holds 69.6% in NMDC. The remaining 30.4% is held by public and institutional investors, including 4.2% by individuals.

The company said it will be making a public announcement setting out the process, timelines and other requisite details pertaining to the proposed buyback in due course in accordance with the Buyback Regulations.

We will keep you updated on all the news from this space. Stay tuned.

Speaking of the stock market, here's a pattern that if you see, you must sell your position. After all, exits are more important than entries.

In the chart below, we can see the head and shoulder pattern - the stock goes up, makes a high, falls a little bit, goes up to a higher high, does not make a higher low, rallies again, fails to make a new high, and then starts to break down.

This usually happens in a situation where a stock or index has typically been in a bull trend for a while.

According to Apurva Sheth, Senior Research Analyst at Equitymaster, spotting this pattern correctly can help you save money.

If you're interested in trading and want to know how you can use this pattern, you can read about it in one of the recent editions of Profit Hunter here: It's When You Sell that Counts

And to know what's moving the Indian stock markets today, check out the most recent share market updates here

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Indian Share Market Update: Top Gainers and Losers

What else is happening in the markets today? Dig in...