Asian share markets tumbled more than 1% today following a sharp sell-off on Wall Street fuelled by concerns about the impact of runaway inflation on the economy.
The Nikkei had a steep fall of by 1.1% while the Hang Seng fell 1.2%. The Shanghai Composite is down 0.51%.
Wall Street tumbled in a broad sell-off overnight as dire consumer confidence data dampened investor optimism and fuelled worries that the Federal Reserve’s aggressive battle against inflation could tip the economy into recession.
The Dow Jones plummeted 1.6% while the tech heavy Nasdaq also dropped 3%.
Back home, Indian share markets are trading on a negative note.
Benchmark indices opened in red following the trend on SGX Nifty. Benchmark indices fell around 1% but have recovered some losses as the session progressed.
Ultratech Cement and Tata Steel are among the top gainers today.
Asian Paints, Titan and Wipro continue to be among the top losers today.
Broader markets are also trading on a negative note. The BSE Mid Cap index is down by 0.8%. The BSE Small Cap index is trading lower by 0.1%.
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Sectoral indices are trading mixed. Stocks in the energy, utilities, oil and gas and basic materials sectors witnessing buying.
Whereas stocks in the banking sector and consumer durables sector are witnessing most of the selling.
We often compare inflation with price rise. Hence, as inflation rises, commodities become costlier.
But did you know that there is a type of inflation that we cannot see? This type of inflation is called ‘Shrinkflation‘.
In the commodity markets, gold prices edged higher. Today, prices are up by Rs 73, trading at Rs 50,895 per 10 grams.
Meanwhile, silver prices are trading higher at Rs 60,423 per kg.
Crude oil prices fell today after a continuous rise of three days.
Investors in crypto markets are not having a good night’s sleep these days as coins continue to tumble in the face of a global market selloff and rising interest rates.
Many crypto exchanges have paused bitcoin withdrawals which lead to a sharp fall in the entire crypto market.
Speaking of stock markets, the Indian share markets have started recovering.
In this situation, investors intend to make the most of the recovery. They are waiting for the right time to buy the dip just before the price go up.
So, what is a critical metric that you should look out for before buying this dip. Richa Agarwal answers this question in the below video.
In the news from cement sector, Springway Mining (SMPL) is now a wholly owned subsidiary of India Cements.
In a regulatory filing on Tuesday India Cements said,
- “SMPL has become a wholly-owned subsidiary of our company with effect from June 27, 2022”
The entire equity and preference shares of SMPL were acquired at a total consideration of Rs 1.8 bn. The acquisition was completed on Monday.
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SMPL is involved mainly in mining and quarrying business, while India Cements is a leading manufacturer of cement in the country. SMPL is in the process of setting up of a cement plant in Madhya Pradesh.
SMPL has no business income. However, it had reported ‘other income’ of Rs 1.7 m, Rs 0.5 m and Rs 24,000 for FY19, FY20 and FY21 respectively.
ICL had announced the acquisition of SMPL during October 2018, with the objective of setting up a cement plant in Madhya Pradesh.
Looks like Radhakishan Damani’s idea of buying the stock in December 2021 has started to show its results as the share price of the company rises with the news of acquisition.
This is how India Cements performed between December 2020 to December 2021.
Further in the news from the telecom sector, Route Mobile has approved buy back of shares.
The board of Route Mobile approved the buyback of shares in the open market in a meeting on Tuesday.In a filing, the company informed that its board had approved Rs 1.2 bn spending to buyback shares from shareholders barring promoter, promoter group, and persons in control of the company.
The board approved the buyback of fully paid equity shares at a maximum price of Rs 1,700.
At maximum buyback price (Rs 1,700), and maximum buyback size (Rs 1.2 bn), the indicative maximum number of equity shares bought back would be 705,882, 1.12% of the total number of paid-up equity shares of the company.
The board also approved the formation of a buyback committee and delegated its powers to do “all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback”.
Additionally, the board approved the appointment of Rathindra Das, group head legal, company secretary and compliance officer for the buyback.
Route Mobile share price is currently trading down by 6%.
Since buybacks interest you, check out Equitymaster’s newly launched corporate action pages.
Corporate action events often bring material changes to a company through changes in the capital structure.
In case of buyback, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible, use it to your advantage to rake in some cash.
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,
Indian Share Market Update: Top Gainers and Losers
What else is happening in the markets today? Dig in…