Gold prices slump today but remain in a broad range
The global risk sentiment has reduced due to the optimism over the vaccine, and that is putting pressure on gold prices. But at the same time, rising Covid cases pose a risk to the economic recovery, thus hinting at the need for a fresh stimulus. This dichotomy has led to gold prices trading in a range over the past few weeks. However, phases of consolidation are generally followed by sharper movements, which is what we witnessed today. Further, the dollar index bounced back, and gold and silver prices, (which move inversely to the dollar index) slumped 0.8% and 1.8%, respectively.
Titan gains on improved traction during festive season
Titan’s jewellery business, which contributes about 80% of the total revenues, registered a 15% growth in the 30-day festive period (from Dussehra to Diwali) this year, as compared to the same period last year. The growth rate is encouraging, given sales in this business segment were at 98% of the level seen in Q2 last year. Meanwhile, the watch and wearables business (accounting for nearly 15% of revenues), which had seen slower recovery (55%) in Q2, has now reached sales levels of last year. Today, the stock had gained almost 5% intraday. However, it succumbed to selling pressure along with the broader markets and ended the day with gains of 0.9%.
L&T sees action after bagging another bullet train order
L&T has bagged yet another order to build an 87-km stretch of the Mumbai-Ahmedabad bullet train project. While the company didn’t disclose the exact value of the project, its classification as a mega order suggests that it is worth over ₹7,000 crore. In October, the company had won a mega order for a 237-km stretch of the same project. Together, these projects account for over 60% of the total distance of 508 km between Mumbai and Ahmedabad. The company’s order flow has picked up momentum over the last month or so, after a sluggish first half of this fiscal. Consequently, its share price has risen by 20% this month. However, the stock saw profit-booking today and ended 1.6% lower, after a sharp rise of 6.2% seen yesterday.