Share markets in India remained subdued in the afternoon session and finished flat as caution prevailed ahead of UP state elections. At the closing bell, the BSE Sensex stood higher by 27 points, while the NSE Nifty finished up by 3 points.
Currently, the NIFTY-50 is trading at a price to earnings ratio of 23.2 times. The valuations look very expensive. However, one of the reasons of the steep valuation is the depressed earnings of the NIFTY-50 companies.
Return Ratios Sliding Downwards
Meanwhile, the S&P BSE Mid Cap finished down by 0.2%. & the S&P BSE Small Cap ended flat. Gains were largely seen in auto stocks & consumer durables’ stocks.
Dr Reddy’s Laboratories share price (down 5%) slipped and fell to its 52-week low after the company received 13 observations from the US Food and Drug Administration (USFDA) for its Duvvada plant in AP. It had also recently received three observations for its Telangana plant.
Oil & Gas stocks finished in red as Oil prices slumped to their lowest level of 2017 following a bearish US supply report that also dented American petroleum-linked shares.
Asian stock markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.34%, while the Hang Seng led the Shanghai Composite lower. They fell 1.18% and 0.74% respectively. European markets are lower today with shares in London off the most. The FTSE 100 is down 0.41% while Germany’s DAX is off 0.11% and France’s CAC 40 is lower by 0.06%.
The rupee was trading at Rs 66.76 against the US$ in the afternoon session. Oil prices were trading at US$ 50.38 at the time of writing.
Tata Motors (TTM) finished the trading day up by 1.1% in today’s trade after it was reported that the company and Europe’s largest car maker Volkswagen Group (VLKAF) have signed a Memorandum of Understanding, on the sidelines of the 87th Geneva International Motor Show to explore a possible joint technical collaboration or joint venture on vehicle architecture, engines and component sourcing.
