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Asian share markets are trading mostly lower today, extending Wall Street falls on contagion fears from the expected collapse of Chinese property giant Evergrande.

The Hang Seng is down 0.2%. Markets in China, South Korea and Taiwan are closed today for holidays.

In US stock markets, Wall Street indices slid overnight and had their biggest drop since May.

The Dow Jones Industrial Average fell 1.8% while the Nasdaq Composite declined 2.2%.

Back home, Indian share markets have opened on a positive note, following the trend on SGX Nifty.

The BSE Sensex is trading up by 149 points. Meanwhile, the NSE Nifty is trading higher by 38 points.

HCL Tech and HUL are among the top gainers today. Maruti Suzuki, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened on a flat note while the BSE Small Cap index is trading lower by 0.5%

Sectoral indices are trading mixed with stocks in the realty sector and metal sector witnessing most of the buying.

Power stocks, on the other hand, are trading in red.

Shares of Godrej Properties and Avenue Supermarts hit their 52-week highs today.

The rupee is trading at 73.58 against the US$.

Gold prices are trading down by 0.2% at 46,196 per 10 grams.

Meanwhile, silver prices are trading down by 0.1% at 59,635 per kg.

In news from the finance sector, SBI Cards is among the top buzzing stocks today.

Private equity firm Carlyle Group will nearly offload half of its stake in SBI Cards and Payment Services for as much as US$443 m.

CA Rover Holdings, a Carlyle entity, which as of June 2021 held a 6.5% stake in SBI Cards, will sell around 32 m shares through a block trade.

It will offer the shares at an indicative price band of  1,021 to  1,072.3 apiece.

This sale follows Carlyle selling a 5.1% stake in SBI Cards for  48.1 bn in June, while in March, it offloaded a little more than 4% for about  38 bn through block deals.

The stake sales followed SBI Cards’ public listing in March last year. Carlyle divested a 10% stake in SBI Cards for around 70 bn, marking the largest private equity exit through an initial share sale in India.

Note that last month, Carlyle undertook a block trade to sell its remaining stake in life insurer SBI Life Insurance for around US$289 m.

SBI Cards share price has opened the day down by 4.5%.

Moving on to news from the banking sector, HDFC Bank and Paytm on Monday announced plans to launch a range of credit cards powered by global card network Visa in October.

The above developments come a month after the Reserve Bank of India (RBI) partially lifted a ban on HDFC Bank, allowing it to restart issuance of credit cards.

The credit cards will be customized to meet distinct needs of retail customers, from new-to-credit users to affluent users and offer one of the best-in-class rewards and cashback for users.

This launch is planned in October to coincide with the festive season to tap into potentially higher consumer demand for credit card offers, EMIs and buy now pay later options.

Under the partnership, HDFC Bank and Paytm will introduce business credit cards, offering a host of benefits for merchant partners from the smaller cities and towns of India.

As per a leading financial daily, with over 51 m credit cards, debit cards and prepaid cards and over 2 m merchants, every third rupee spent on cards in India happens on HDFC Bank cards.

In other news, HDFC Bank is planning to double the amount of loans it makes to retail borrowers over the next couple years as consumer demand ramps up from a pandemic-induced slowdown.

In an interview, Arvind Kapil, the bank’s country head for retail assets said uncertainty is declining and demand is improving as businesses seek to bolster growth after Covid-19.

If this is successful, it would mark a sharp turnaround from its strategy a year ago when the bank slowed down its retail lending to protect its asset quality.

HDFC Bank’s retail lending share as portion of its total fell to 47% in March, the lowest in at least five years from an average of 54% to 55% previously.

HDFC Bank share price has opened the day up by 0.2%.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

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It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long run.

This article is syndicated from Equitymaster.com

 

 

 

 

 

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