The Hang Seng and Shanghai Composite are trading down 3.4% and 1.1%, respectively. The Nikkei fell 3.2%.
In US stock markets, Wall Street indices ended lower on Friday as the war in Ukraine saw a spurt in US jobs growth last month, pointing to a consolidation in the economy.
Major sector indexes fell, with the financial situation worrying investors about how the West’s sanctions against Moscow could affect the international financial system.
The Dow Jones Industrial Average fell 0.5%, while the S&P 500 fell 0.8%. The Nasdaq Composite dropped 1.7%.
Back home, Indian stock markets are trading deep in the red.
In line with souring global sentiment on geopolitical concerns, benchmark indices opened on a weak note.
investors lost 6 lakh crore in early trade today amid increasing demand for tougher sanctions against Russia.
BSE Sensex is trading down 1,496 points. Meanwhile, NSE Nifty is trading with a fall of 460 points.
ONGC and Hindalco are among them Today’s Top Beneficiaries, On the other hand, Maruti Suzuki and Eicher Motors are among the top losers today.
Broader markets fell in line. BSE Mid Cap Index is down 3% while BSE Small Cap Index is down 2.7%.
Banking sector, finance sector and realty sector are seeing the biggest sell-off in the sectoral index with stocks.
On the other hand, metal stocks and IT stocks have a bullish trend and are trading in the green.
Shares of Ultracab India and Brookfield India today hit 52-week high.
Rupee is trading at 76.84 against US Dollar.
crude oil prices Global markets rose to their highest level since 2008 due to delays in a possible return of Iranian crude and as US and European allies consider imposing sanctions on imports of Russian oil.
Gold prices are trading up 1.9% 53,555 per 10 grams.
Meanwhile, silver prices are trading with a rise of 2.3%. 70,720 per kg.
in global markets, Gold edged higher at USD 2,000 an ounce, while palladium hit a record high as concerns over the Russia-Ukraine conflict pushed investors towards the safe-haven asset.
Holdings of the world’s largest gold-backed exchange-traded fund (ETF), SPDR Gold Trust, rose 0.4% to 1,054.3 tonnes on Friday – the highest since mid-March 2021.
Last week, rising gold prices put buyers in the top hub, as others waited closely for the Russia-Ukraine conflict, while Hong Kong’s Covid-19 stoked appetite.
Coming to the precious yellow metal, how attractive has gold been as a long-term investment in India?
The chart below shows the annualized returns on gold over the last 15 years…
As you can see, gold has given positive returns in 13 of the last 15 years, barring just two years – 2013 and 2015.
In news from the mutual fund space, Indian fund managers have not sold equity positions despite threats from a war in Ukraine or a rise in global rates.
Data from the market regulator shows that they invested 284.4 billion in development assets in February, or double the average of the previous year.
It captures all equity related investments by local fund managers through equity funds, balanced funds, index funds and ETFs.
The strength of the underlying local fund deployment can be gauged from the fact that there are only three instances when MF net investment in equities has exceeded $250 billion a month since the data became available on the regulator’s website.
note that Mutual Funds of India have been a net buyer in equities for twelve consecutive months, and the monthly inflow has exceeded 180 billion for four consecutive months.
This is offset by record high redemptions by foreign investors, who have sold the stock price 892.7 billion in the same period.
Sharp selling by FIIs resulted in Indian stock markets entering a phase of technical recovery, down more than 10% from recent peaks. Even quality stocks like FII favorite HDFC have not been spared.
At a time when FIIs are selling out, domestic institutions have reposed confidence and extended support.
We will keep you informed about the latest developments in this field. stay tuned.
Stocks are moving up on specific news…
PVR is one of the most talked about stocks today.
India’s leading multiplex chain PVR and the local arm of Mexican company Cinépolis are in talks for a merger, potentially reshaping India’s film exhibition industry, which saw its first phase of consolidation over the past decade and a half.
According to an article in The Economic TimesThe deal is “quickly headed to fruition” and will result in the combined giants having more than 1,200 screens.
The number of screens operated by the next largest entity, Inox Leisure, is about half that of the merged company’s operations.
People aware of the developments said that the finer details are being worked out. Cinépolis will be the largest shareholder in the merged company, holding approximately 20%.
PVR promoters will hold between 10% and 14% ownership, but Ajay Bijli (CMD of PVR) will have full management control for at least three years.
Reports are indicating that the merger may be announced by the end of March.
Note that the first phase of consolidation in India’s film exhibition industry began in the new millennium when a large number of single-screen facilities failed to match well-capitalized corporates running multiple screens – and films – in a single physical facility.
Hundreds of single screen features have left the industry now dominated by organized exhibitors such as PVR or INOX.
PVR’s earlier acquisition of DT Cinemas from DLF had to undergo public scrutiny by the competition watchdog.
PVR share price is currently trading with a decline of 2.3%.
This article is syndicated from equitymaster.com
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