Indian share markets witnessed buying momentum in the afternoon session and finished on a positive note. At the closing bell, the BSE Sensex closed higher by 70 points and the NSE Nifty finished higher by 39 points. The S&P BSE Mid Cap finished up by 0.8% while S&P BSE Small Cap finished up by 0.7%. Gains were largely seen in realty sector, metal sector and pharma sector.
Asian stock markets mixed as of the most recent closing prices. The Shanghai Composite gained 0.78%. The Nikkei 225 lost 0.20%.
Rupee was trading at Rs 64.05 against the US$ in the afternoon session. Oil prices were trading at US$ 58.44 at the time of writing.
At the time of writing, gold prices were trading on an encouraging note. Returns from gold have been anything but flattering. Mainly a hedge against market volatility, gold prices have remained at roughly the same levels since 2013.
On the contrary, share market in India has been on a constant upward trajectory during the same period. The only blip seen was in 2016, when gold prices gave healthy returns.
Gold Returns : 2013 - 2017
One more reason for the lackluster returns has been the global economy. US interest rates have been on the rise since 2014. This has swayed investors' interest towards government bonds, subsequently reducing demand for gold.
While the US Federal Reserve is also expected to raise interest rates next year, current gold valuations seem to have factored that in.
Moving on to news from banking sector. As per a leading financial daily, NPAs of Public Sector Banks (PSB) reached to Rs 7.33 trillion as of September 2017, mainly due to corporate defaulters despite the governments' various efforts.
As per the RBI data, though the bad loans of PSBs are rising high, the private sector banks reported a considerably lower NPA figure of Rs 1.02 trillion.
Public sector banks appeared more stressed than private banks, with country's largest bank, State Bank of India(SBI) accounted for the largest share in the total NPAs at over Rs 1.86 trillion, followed by Punjab National Bank (Rs 576.3 billion), Bank of India (Rs 493.07 billion), Bank of Baroda (Rs 463.07 billion), Canara Bank (Rs 391.64 billion) and Union Bank of India (Rs 382.86 billion).
PSBs finished the day on a mixed note with Syndicate Bank share price and Vijaya Bank share price leading the losses.
In another news, Yes Bank share price finished the trading day up by 1.7% on the BSE after it was reported that the company has established a medium-term note program to raise US$1 billion (over Rs 64 billion) by issuing debt securities on private placement basis.
In news from steel sector, Tata Steel share price finished the day on an encouraging note (up 1.5%) after it was reported in The Economic Times that German steel giant Thyssenkrupp has announced a "negotiated settlement" with its workers to clear the way for its proposed joint venture with Tata Steel Europe.
Moving on to news from energy sector. Indian Oil Corp (IOC) share price and Bharat Petroleum (BPCL) share price is in focus today, amid reports that the oil majors are both keen to acquire gas utility GAIL India to become fully integrated energy companies.
According to a leading financial daily, both IOC and BPCL have separately indicated to the petroleum ministry their interest in taking over GAIL to help add natural gas transportation and marketing business to their kitty.
The merger options were indicated following FM Arun Jaitley's announcement in the 2017-18 Budget speech on the government's plan to create integrated public-sector oil majors that will be "able to match the performance of international and domestic private sector oil and gas companies".
Despite the interest from the oil majors, GAIL feels a merger with oil and gas producer would be more appropriate.
GAIL share price finished the day up by 1.3% on the BSE.
In another development, Kirloskar Oil Engines share price hit a record high as a media report said that Cummins Group is in talks to buy a controlling stake in the company.
Shares of Kirloskar Oil Engines Ltd surged as much as 19% to a record high of Rs. 450. The stock of the company posted its biggest intraday percentage gain since February 4, 2015.
The Cummins Group, one of the world's largest manufacturers of engines and power generation products, is in talks to acquire a controlling stake in the auto parts and equipment company Kirloskar Oil Engines.
Cummins India share price finished up by 6% on the BSE.
And here's a note from Profit Hunter:
Jet Airways is among the top most active stocks in the market today. Let's have a look at its chart.
The stock has been trading dull ever since it was listed on the stock exchanges. From its listing price of around 1,150, it dropped down to a low of 115 in four years. It then traded between two converging trendlines (black lines) for 10 years. This month, it broke out of the upper trendline indicating immense strength in the counter.
Today, the stock rallied 9% to also break above its January 2016 high of 796. The volumes were also on the higher side for the past two months, indicating buying interest.
Is this an indication that the stock is ready to cross its listing price soon? Let's wait and watch...
Jet Airways Hits Fresh 52-Week High
This article was originally published in English at www.equitymaster.com
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