Sensex Trades Over 200 Points Higher; Dow Futures Up By 64 Points

Thu, 24 Dec 12:30 pm | Ayesha Shetty, TM Team

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

The BSE Sensex is trading up by 281 points, up 0.6% at 46,725 levels.

Meanwhile, the NSE Nifty is trading up by 60 points.

ONGC and Tata Motors are among the top gainers today. Infosys and Nestle India are among the top losers today.

The BSE Mid Cap index is trading up by 0.2%

The BSE Small Cap index is trading up by 0.5%.

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

On the other hand, stocks from the FMCG 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 17 points (up 0.1%) while Dow Futures are trading up by 64 points (up 0.2%).

The rupee is trading at 73.58 against the US$.

Gold prices are trading down by 0.1% at Rs 50,090 per 10 grams.

In international markets, gold prices steadied as investors balanced elevated U.S. jobless claims with US President Donald Trump's threat to veto a long-awaited stimulus bill.

Tracking a muted international trend, gold prices edged lower in Indian markets today. On MCX, February gold futures edged 0.2% lower to Rs 50,070 per 10 grams.

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.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

FINALLY: Join The Equitymaster Conference LIVE from Your Home...

Moving on to stock specific news...

Among the buzzing stocks today is Tata Communications.

Digital solutions provider Tata Communications has acquired a 58.1% stake in Oasis Smart SIM Europe SAS, a France-headquartered embedded-SIM (eSIM) technology provider.

The financial terms of the deal were not disclosed.

Following the investment, Tata Communications will integrate eSIM technology with its MOVE platform, a global Internet of Things (IoT) solution. The platform enables enterprises and device manufacturers to capture, move and manage information worldwide through a network independent, platform approach.

"Enterprises are increasingly relying on mobile devices to operate and access data in the cloud. This, coupled with the rise in the number of machine-to-machine connections globally, shows that there is immense opportunity in the eSIM market. Through this investment, we will focus on the software layer of the Tata Communications MOVE portfolio and drive further innovation in eSIM technology through product roadmap R&D," said Tata Communications' Chief Strategy Officer Tri Pham.

This investment will enable Tata Communications to deliver a full-service enterprise mobility solution to customers through complete access and management of the eSIM and software layer.

Recently, Tata Communications, together with Micron, announced a worldwide cellular-enabled connectivity solution to simplify and accelerate large-scale global deployment of IoT devices.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Tata Communications share price was trading up by 3.5% on the BSE.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani explains why you shouldn't go short on crude oil, in his latest video for Fast Profits Daily.

In the video below, Vijay shares details of a recent geo political event that will cause a lot of short-term volatility in the price of crude oil and when you can expect the next crude oil trade.

Tune in here to find out more:

Moving on to news from the auto ancillaries sector...

German Regulator Imposes 32 Million Euro Fine On Three Bharat Forge Companies

Three companies of Bharat Forge are among several aluminium forging companies in Germany which will pay an aggregate of 175 million euros for "engaging in illegal competitive agreements".

Germany's national competition regulator - Bundeskartellamt (Federal Cartel Office - FCO) announced the fines on Bharat Forge Aluminiumtechnik GmbH, Bharat Forge CDP GmbH, and Bharat Forge Global Holding GmbH in connection with two separate proceedings.

The investigation in the above two matters pertained to the period between 2004 and 2018 and was initiated by FCO against several companies in Germany. Bharat Forge's German subsidiaries were among many such companies.

Andreas Mundt, President of the Bundeskartellamt, said, "For many years the companies had worked towards the mutual aim of passing on rising costs to their customers in an effort to avoid disadvantages caused by increased costs. For this purpose, senior staff members of the forging companies met regularly and exchanged information on cost factors which are very substantial price components. They encouraged one another to pass on possible increases to their customers."

Note that well-known automotive suppliers and manufacturers are among the key customers of the forging companies as well as companies active in many other business areas, in particular the motorcycle production.

Bharat Forge's German subsidiaries have reached a settlement in an aggregate amount of 32 million euros to be paid over the next five years. The final settlement for Bharat Forge Aluminiumtechnik GmbH has been signed whereas the settlement for Bharat Forge CDP GmbH and Bharat Forge Global Holding GmbH is in the final stage and expected to be signed early next year.

The fining decisions are not yet final and can be appealed to the Düsseldorf Higher Regional Court.

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

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

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