BackSensex, Nifty flat; telecom, healthcare stocks under pressure
Indian share markets traded flat, with the BSE Sensex down by 34 points, while the Nifty fell 11 points
PremiumAsian stock markets are trading on a mixed note today as traders evaluated risks from the omicron virus strain.
The Hang Seng is down 0.7%, while the Shanghai Composite is up 0.6%. The Nikkei reversed early losses and is trading up by 0.3%.
In US stock markets, Wall Street indices ended higher on Thursday, recovering ground lost over recent sessions as market participants snapped up bargains while digesting the implications of a shifting pandemic.
The Dow Jones Industrial Average gained 618 points or 1.8%. The technology-heavy Nasdaq Composite gained 0.8%.
Back home, Indian share markets opened on a positive note, defying the trend on SGX Nifty.
However, benchmark indices have erased early gains and are presently trading on a flat note.
Today is the final day for subscription for the Tega Industries IPO, and second day for Anand Rathi Wealth IPO. Both the IPOs were fully subscribed on Day 1 of the issue itself.
The BSE Sensex is trading down by 34 points. Meanwhile, the NSE Nifty is trading lower by 11 points.
L&T and Infosys are among the top gainers today. Nestle, on the other hand, is among the top losers today.
The BSE Mid Cap index and the BSE Small Cap index are trading higher by 0.2% and 0.4%, respectively.
Sectoral indices are trading mixed with stocks in the capital goods sector and power sector witnessing buying interest.
Telecom stocks and healthcare stocks, on the other hand, are trading in red.
Shares of Bajaj Holdings and KEI Industries hit their 52-week highs today.
The rupee is trading at 75.01 against the US$.
Gold prices are trading up by 0.4% at ₹47,606 per 10 grams.
Meanwhile, silver prices are trading up by 0.2% at ₹61,220 per kg.
Gold is set for a third straight weekly drop, weighed down by signals from Federal Reserve officials that the central bank could end its pandemic-era asset purchases and raise interest rates faster than expected to combat surging inflation.
Crude oil prices climbed today, extending gains after OPEC+ said it would review supply additions ahead of its next scheduled meeting if the Omicron variant hits demand.
In news from the electric vehicles (EV) space, Japanese auto major Honda Motor on Thursday said it has set up a battery sharing service subsidiary in India with a capital of ₹1.4 bn.
The new subsidiary, Honda Power Pack Energy India, will offer battery sharing service for small mobility, which will accelerate the penetration of EVs and will also provide technical support to vehicle OEMs.
It will address EV-related issues such as limited range, long charging time, and high cost of batteries, the company said in a statement.
In addition to the battery sharing service, the new company will closely work with multiple vehicle OEMs (Original Equipment Manufacturers), who wish to integrate Honda's battery into their vehicles, by providing necessary technical information for the interface.
The company said its all-new portable battery will be made in India and the new subsidiary will seek to encourage the use of renewable energy and contribute to carbon neutrality in the country.
In other news from the EV space, Tata Power has collaborated with ama Stays & Trails, India’s first branded homestay portfolio by Indian Hotels, to set up EV charging stations at over 30 of its villas and heritage bungalows across 11 destinations.
This comes as rising demand for sustainable transport infrastructure has resulted in an increasing number of hospitality brands investing in EV charging points.
This marks an important step for both flagship Tata group companies in furthering their commitment towards adopting more sustainable and cost-efficient business practices.
Under the partnership, Tata Power EZ Charge has established EV chargers for guests staying at the am Stays & Trails homestays.
Tata Power has deployed an extensive EV charging infrastructure with over 1,000 EV charging points across 180 different cities under the EZ Charge brand along with a digital platform to facilitate an easy & smooth customer experience.
Shares of Tata Power are trading higher by 0.4%.
Speaking of EVs, have a look at the chart below which shows the massive opportunity in the two-wheeler EVs.
Here’s what lead Smallcap Analyst at Equitymaster, Richa Agarwal wrote about this in a recent edition of Profit Hunter:
In the last five years, two-wheeler sales in India were around 2 crore units per year. Now the sector is cyclical and has been in the downturn for some time. So let's consider a moderate 5% growth for the next 10 years.
By 2030, we are looking at 2-wheeler sales of 3 crore units. Even if one third of this is EV sales, that's 1 crore electric 2-wheelers per year.
In the last 2 years, average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, that's a 66x opportunity in 2-wheeler EVs.
This is an annual growth rate of 52% over next 10 years. It's an almost vertical growth opportunity.
As per Richa, this is like a gold rush. But like in any gold rush, the winners will just be a few.
Moving on to news from the finance sector, Shriram City Union Finance has disbursed the highest ever loans amounting to ₹10.2 bn to 1.6 lakh two-wheelers in November 2021.
The Chennai-based leading two-wheeler NBFC crossed the ₹10 bn disbursement mark for the second consecutive November.
The attractive financing offers during the festive season have stood out as one of the key drivers, with an additional push by the increase in people movement and recovery in rural demand leading to elevated disbursements.
With the increasing demand for EVs, Shriram City Union is seeing a rise in the average loan ticket size.
Shriram City primarily caters to salaried and non-salaried buyers inclined towards the entry-segment two-wheelers having the highest demand across categories.
Followed by their milestone of financing over 10 m two-wheelers, Shriram City Union is now the largest two-wheeler financer in India.
Shriram City Union share price is currently trading up by 0.2%.
(This article is syndicated from Equitymaster.com)
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