Sensex over 300 points higher, Dow Futures down 10 points3 min read . Updated: 02 Sep 2021, 01:27 PM IST
- Consumer durables and FMCG stocks are witnessing most of the buying interest, while auto stocks are seeing selling pressure
Share markets in India are presently trading on a strong note.
The BSE Sensex is trading up by 328 points, up 0.6%, at 57,666 levels.
Meanwhile, the NSE Nifty is trading up by 104 points.
HDFC Life and Shree Cement are among the top gainers today. Indian Oil Corporation and Tech Mahindra are among the top losers today.
The BSE Mid Cap index is trading up by 0.8%
The BSE Small Cap index is trading up by 0.7%.
On the sectoral front, stocks from the consumer durables and FMCG sector are witnessing most of the buying interest.
On the other hand, stocks from the automobile sector are witnessing most of the selling pressure.
US stock futures are trading mixed today.
Nasdaq Futures are trading up by 13 points (up 0.1%) while Dow Futures are trading down by 10 points (flat).
The rupee is trading at 72.97 against the US$.
Gold prices are trading flat at ₹47,081 per 10 grams.
Gold prices continued to struggle in Indian markets today amid subdued global cues and a stronger rupee. On MCX, gold futures were flat at ₹47,063 per 10 grams, extending losses to the fourth day. In the previous session, gold had settled flat.
In global markets, gold rates were steady ahead of US non-farm payrolls data which analysts say is crucial to the Federal Reserve's tapering plan. Spot gold was steady at US$ 1,814.5 per ounce.
Moving on to stock-specific news…
Among the buzzing stocks today is Minda Corporation.
Shares of Minda Corporation rose over 4% on the BSE in early trade today after the company's subsidiary Spark Minda Green Mobility Solutions (SMGMS) entered an agreement to acquire a 26% equity stake in charging solutions startup EVQPOINT Solutions.
The investment will see Spark Minda Group become EVQPOINT's exclusive technology and manufacturing partner for battery chargers and EV supply equipment.
The partnership will help Spark Minda to capitalize on the accelerating shift to electric mobility and further bolster its position as a one stop shop for comprehensive charging solutions for EVs including fast charging feature.
EVQPOINT provides smart electric vehicle charging products and solutions indigenously designed and developed, to meet the growing needs of e-mobility market.
The company is a one-stop solution for electric vehicle portable chargers, DC fast chargers, and smart charging stations integrated with charge management system, mobile app, and interoperable tools.
The companies also entered into a technology license agreement (TLA) and a joint collaboration & technical assistance agreement.
How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.
At the time of writing, Minda Corporation shares were trading up by 4.6% on the BSE.
Speaking of electric vehicles, note that the power ministry has approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states.
Here's what Co-Head of Research at Equitymaster, Tanushree Banerjee wrote about electric vehicles in one of her editions of Profit Hunter:
"106 public and private entities have approached the government for permissions to set up about 7,000 EV charging stations.
This clearly shows the vehicle manufacturers have enough incentive to capture this latent demand.
The tax benefit in terms of a lower GST rate (at 5%) is a further shot in the arm of the EV industry."
As per Tanushree, electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.
Tanushree believes a company manufacturing lithium ion battery for powering electric cars will be a key catalyst for the Rebirth of India.
Moving on to news from the banking sector…
RBI imposes ₹2.5 m fine on Axis Bank for rule violations
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.5 m on Axis Bank for violation of rules.
The regulator cited non-compliance of the bank with certain provisions of directions issued by RBI contained in the Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016.
This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.
The RBI carried out a scrutiny of Axis Bank during February 2020 and March 2020 in a customer account maintained with the bank and it was observed that the bank had failed to comply with the aforesaid directions issued by RBI.
Subsequently, a notice was issued to the bank.
After considering the bank’s reply, the RBI came to the conclusion that the charge of contravention of/noncompliance with the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty.
We will keep you posted on more updates from this space. Stay tuned.
This article is syndicated from Equitymaster.com
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