Tracking declines in global markets, benchmark indices fell for the fourth consecutive day, dragged by realty, telecom and finance stocks.
The BSE Sensex closed with a fall of 361 points (down 0.6%) at the closing bell.
Meanwhile, the NSE Nifty closed with a fall of 86 points (down 0.5%).
Mahindra & Mahindra and Coal India were among the top gainers today.
On the other hand, Bajaj Finserv and Maruti Suzuki were among the top losers today.
At the time of writing the news, SGX Nifty was trading at 17,528 with a fall of 84 points.
The BSE Midcap index closed down 0.2%, while the BSE Smallcap index closed up 0.5%.
Sectoral indices closed on a mixed note with realty sector, finance sector and telecom sector witnessing the biggest selling pressure.
On the other hand, buying interest was seen in consumer durables stocks.
Shares of Trent and Dixon Technologies touched their respective 52-week highs today.
Asian stock markets today closed on a negative note.
Nikkei closed down 2.3% in today’s session. Major markets- China and Hong Kong remained closed today due to holiday.
US stock futures are trading on negative note today and Dow futures is trading down 231 points.
Rupee is trading at 74.12 against US Dollar.
Gold prices are trading lower by 0.1% for the latest contract on MCX ₹46,265 per 10 grams.
Tata Sons wins bid for Air India
Moving to stock-specific news, Tata Group shares were among the top Gulzar Stock Today.
Tata Sons has emerged as the winning bidder for Air India, a debt-ridden airline that was nationalized in 1953.
The selection of Tata Sons to head Air India may sound like a turning point as it was the same group that created India’s first airline in 1932 and called it Tata Airlines.
Tata Airlines, which was the brainchild of Jehangir Ratanji Dadabhai (JRD) Tata and a veteran World War I pilot Neville Vincent, was renamed Air India in 1946 after going public.
With Tata Sons emerging as the next owner of Air India, this handover may come as a relief to Prime Minister Narendra Modi, as the enterprise, bleeding the government for decades.
According to a Reuters report, the government was incurring losses. ₹200m per day to run Air India. Debt so far on Air India ₹7 billion or US$9.5 billion.
Since coming to power, PM Modi’s intention was to sell the entire interest of the government in Air India. The loss-making airline has been kept afloat by a bailout since 2012.
We will keep you posted on more updates from this space.
Moving on to the news of the auto sector…
VST Tillers Hits 10% Upper Circuit On Agreement With US-Based Firm Ximeno
Shares of VST Tillers Tractors were closed in upper circuit by 10% ₹2,964.8 on BSE today The Company announced that it has entered into a Master Services Agreement with Ximeno Inc., USA. Developing an integrated tractor powertrain for Zimeno’s electric tractor.
The stock was trading at its 52-week high and surpassed its previous high ₹2,898.9 touched on 7th September 2021. It had touched a record high of ₹3,085 as on 24 April 2018.
Last month, VST Tillers launched the VST range of tractors and power tillers in Southern Africa.
In a regulatory filing, the company said,
The company has entered into an agreement with Export Trade Group (ETG) for the distribution of its tractors, power tillers, power reapers and diesel engines in Southern African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland and Zambia.
VST Tillers is the largest Indian manufacturer of tillers, four-wheel drive compact tractors and one of the leading producers of other range of tractors, engines, transmissions, power reapers and precision components.
It has also entered into strategic tie-up with Pubert of France for power weeders and Jetor from Czech Republic for tractors.
The share price of VST Tillers rose 10% at the end of the day on BSE.
Coming to the current stock market scenario, note that the BSE Smallcap index has gained over 180 per cent since the crash in March 2020.
Despite the index being up over 1.8x, Richa Agarwal, Head of Smallcap Analyst at Equitymaster, believes smallcap stocks are poised to go up massively in 2021 and beyond.
Why here…
The smallcap to Sensex ratio, a metric that is referred to to get a sense of relative valuation, currently stands at 0.48x. Sure enough, that’s more than 0.43 times the average.
And yet, it is the lowest ever peak in Smallcap. In the previous cycle that peaked in January 2018, when the ratio touched 0.49, the peak was still 9 months away.
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Here’s what Richa wrote in an edition of Profit Hunter…
When it comes to buying smallcap stocks, especially during this time of a rebound rally, you will need a bottom up approach and a longer term horizon.
In fact, if you don’t have the guts to withstand 20%-30% type corrections and volatility, this may not be the place for you at all. And you should stop reading here.
According to Richa, smallcaps are a great opportunity to make some big returns. But you need to be disciplined in terms of allocation of funds. And when you need to be fast choosing the right stock.
This article is syndicated from equitymaster.com
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