Sensex Trades Marginally Higher; Dow Futures Up by 109 Points

Mon, 23 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 20 points, up 0.1% at 43,902 levels.

Meanwhile, the NSE Nifty is trading up by 22 points.

Bajaj Finserv and IndusInd Bank are among the top gainers today. HDFC Bank and ICICI Bank are among the top losers today.

The BSE Mid Cap index is trading up by 1.1%

The BSE Small Cap index is trading up by 1.3%

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

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

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

Nasdaq Futures are trading up by 42 points (up 0.4%) while Dow Futures are trading up by 109 points (up 0.4%).

The rupee is trading at 74.15 against the US$.

Gold prices are trading up by 0.2% at Rs 50,333 per 10 grams.

In global markets, gold prices edged higher today supported by a weaker dollar.

However, despite positive global cues, gold prices dipped in Indian markets. On MCX, gold futures slid marginally to Rs 50,211 per 10 grams. In the previous session, gold prices had finished 0.5% higher.

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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Important: Do You Own These 3 Stocks?

Moving on to stock specific news...

Among the buzzing stocks today is Reliance.

On November 20, the Competition Commission of India (CCI) approved the acquisition of the retail, wholesale, logistics, and warehousing businesses of Future Group by Reliance Retail Ventures (RRVL) and Reliance Retail and Fashion Lifestyle.

The Future Group houses leading retail formats, including supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.

The mega transaction cements the position of Reliance Retail as the undisputed leader in the organized retail segment and adds muscle to its ongoing battle with Amazon for the Indian e-commerce market.

The announcement comes as a setback to Amazon.com which has claimed that the Future Group violated its agreement with the US e-commerce giant by entering into the deal with RIL.

Earlier on August 29, 2020, Reliance Industries had announced the acquisition of businesses of the Future Group for Rs 247.1 billion.

Amazon had moved the Singapore International Arbitration Centre (SIAC) in October and won an interim stay on the deal. The SIAC passed the interim order asking Future Group to hold its plans of selling its retail business to RIL on October 25.

Later, Future Retail (FRL) on November 7 moved the Delhi High Court against Amazon.com for interfering in its Rs 247.1 billion deal with Reliance Industries (RIL) by misusing the arbitration order passed by SIAC.

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

At the time of writing, Reliance share price was trading up by 3.4% on the BSE.

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Moving on to news from the banking sector...

Union Bank of India To Consider Fundraising Plan on November 25

On November 22, state-owned lender Union Bank of India said that its board will meet on November 25 to consider raising equity capital.

The public sector lender, however, did not disclose the amount of capital it intends to raise.

The bank plans to raise funds through various modes including further public offering, rights issues, qualified institutions placement, and preferential allotment to the Government of India.

The fundraising is subject to the approval of the government of India and other regulatory authorities.

Several banks, both in the private and public sectors have planned to or have already raised capital in a bid to strengthen their buffer amid the pandemic.

Earlier in June, the bank's board had approved a plan to raise up to Rs 103 billion in capital for FY21. Under the plan, the bank planned to raise up to Rs 68 billion through a public issuance, rights issuance or private placement. It also planned to raise up to Rs 94 billion by offering additional Tier 1 and/or Tier 2 bonds.

How this pans out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.

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!

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