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Asian share markets are trading on a mixed note today, ahead of the outcome of two-day Fed meet. Japanese markets are closed on account of holiday.

The Hang Seng is down 1.1% while the Shanghai Composite declined 0.4%.

In US stock markets, Wall Street indices added to their recent run of milestones on Tuesday with the Dow Jones closing above 36,000 points for the first time.

The Dow and S&P 500 rose 0.4% each. Meanwhile, the Nasdaq gained 0.3%.

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

Currently, markets have extended gains and are trading higher.

Market participants are tracking shares of SBI, Eicher Motors, Bata India, and Gujarat Alkalies & Chemicals as these companies will announce their September quarter results today.

The BSE Sensex is trading up by 309 points. Meanwhile, the NSE Nifty is trading higher by 82 points.

L&T and Tech Mahindra are among the top gainers today. Sun Pharma, 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 0.4% and 0.5%, respectively.

Barring consumer durables, all sectoral indices are trading in green with stocks in the realty sector and capital goods sector witnessing most of the buying.

Shares of Oberoi Realty and Sobha hit their 52-week highs today.

The rupee is trading at 74.65 against the US$.

Gold prices are trading down by 0.3% at 47,493 per 10 grams.

Meanwhile, silver prices are trading down by 0.1% at 63,202 per kg.

Gold inched lower today as investors awaited the result of a US Federal Reserve policy meeting to assess how the central bank plans to combat rising inflation and ease worries about economic recovery.

Crude oil prices fell today as industry data pointed to a big build in crude oil and distillate stocks in the US and as pressure mounted on OPEC to increase supply.

In news from the FMCG sector, Jyothy Labs is among the top buzzing stocks today.

FMCG firm Jyothy Labs on Tuesday reported a 26.9% fall in consolidated net profit at 439.7 m for the September 2021 quarter as the company faced pressure on margins due to rise in input prices.

It had posted a net profit of 601.3 m in July-September period a year ago.

Topline came in higher at 5,853.5 m during the period under review as against 5,044.9 m in the corresponding period of the previous fiscal year.

In a post earnings statement, the company said:

Due to consistent rise in input prices, there has been a margin pressure which has been partially managed with calibrated price hikes and persistent cost rationalisation measures.

We are taking necessary steps to balance between higher volume growth, market share and margins keeping in mind long term benefits for all the stakeholders.

Total expenses were at 5,355.8 m in the quarter as against 4,357.1 m.

Though Jyothy Labs is facing margin pressure due to high raw material prices in the short-term, it has strategic levers to overcome as its sales growth has been encouraging and affirmative.

Revenue from fabric care was at 2,141.4 m and 2,158.9 m from dishwashing during the quarter under review.

Meanwhile, household insecticides segment revenue was at 627.5 m and personal care contributed 661.3 m in July-September quarter.

Shares of Jyothy Labs are currently trading down by 1.6%.

Moving on to news from the power sector, Tata Power has emerged as the highest bidder for South East UP Power Transmission Company, beating four other bidders with a 30-bn offer to buy the transmission firm under insolvency process.

Tata Power had submitted a final bid on 30 October through its subsidiary Resurgent Power Ventures.

Resurgent Power Ventures is 26% owned by Tata Power. Other shareholders are ICICI Bank, State General Reserve Fund of Oman and Kuwait Investment Authority.

Reportedly, Adani group, Anil Agarwal's Sterlite Power, Power Grid Corporation of India and REC Power Development and Consultancy had also submitted final bids.

All bidders had been given a second chance to better their initial offers.

The lenders will now vote on the Tata bid and then approach their respective boards for final approval. Tatas' bid is likely to get the requisite two-thirds of the lenders' vote required to declare it a winning bidder.

Lenders that include Rural Electrification Corporation, Power Finance Corporation, Bank of India and Axis Bank stand to recover 100% of dues.

South East UP Power Transmission Company was admitted for Insolvency and Bankruptcy Code (IBC) proceedings by the National Company Law Tribunal (NCLT) on the lenders' request last year after owner Grupo Isolux Corsan filed for bankruptcy in Spain.

Isolux Corsan had won a 35-year concession to build and operate a power transmission network in Uttar Pradesh spanning 1,600 kilometers in July 2011.

Note that the competition to acquire the company is reflective of strong investor interest in the power transmission sector which is dominated by public sector players.

Tata Power share price is currently trading down by 0.5%.

Speaking of Tata Power, have a look at the chart below to see how the company’s shares have performed over the past one year.

Tata Power 
View Full Image
Tata Power 

As can be seen, shares of Tata Power have been on fire this year, rising as much as 330% in the past one year.

(This article is syndicated from Equitymaster.com)

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