The Hang Seng and Shanghai Composite are trading down 2.2% and 0.5%, respectively. Nikkei is trading with a decline of 2.9%.
US stock markets remained closed on Thursday to mark the national holiday.
On Wednesday, Wall Street indices ended higher ahead of the US Thanksgiving holiday as US Treasury yields neared year’s highs.
Back home, Indian stock markets opened in the red after the SGX Nifty trend. The benchmark indices declined today on fears of a new Kovid version.
Shares of Tarson Products made their stock market debut today. The issue price was fixed at 662 per share.
BSE Sensex is trading with a fall of 1,211 points. Meanwhile, NSE Nifty is trading with a fall of 360 points.
Dr Reddy’s Lab is one of the biggest beneficiary today. On the other hand, Bajaj Finance and Kotak Mahindra Bank are among the biggest losers today.
The BSE Midcap index is trading with a fall of 1.5 percent. BSE Smallcap index is trading with a decline of 0.8%.
Barring healthcare stocks, all sectoral indices are trading in the red with realty sector and metal sector stocks being under heavy selling pressure.
Shares of Trident and Escorts hit 52-week high today.
Rupee is trading at 74.58 against US Dollar.
Gold prices are trading up 0.4% 47,601 per 10 grams.
In global markets, gold edged lower and is set for its worst week in five months, as prices rose on speculation that the US Federal Reserve would accelerate the pace of stimulus and raise interest rates soon to curb rising inflation.
Crude oil prices fell more than 1% on concerns that a coordinated release of crude reserves among major consumers led by the US could increase global supply surpluses in the first quarter.
In news from the FMCG sector, India’s largest consumer goods makers HUL and ITC have hiked prices across categories for the second time this fiscal, while others have directed for similar action as they continue to sell key raw materials. are tuned to offset higher inflation.
While Hindustan Unilever (HUL) increased prices by 4-22% in its soap and detergent segment, it was 7-10% for ITC’s personal care brands.
Parle Products plans to increase the prices of its biscuits, snacks and confectionery products by 8-10% in the current quarter ending December.
Higher prices of crude oil and palm oil as well as improved demand for consumer goods have forced companies to hike prices marginally. For example, palm fatty acid distillate, a chemical used in household and personal products, has risen 60% over the past 12 months to US$1,220 per metric ton.
Reportedly, the price hike by the maker of Dove shampoos and Lux soaps will be higher than the 11.5% hike implemented during April-September.
ITC’s distributors said its personal care brands Fiama, Vivel and Engage have become costlier with larger packs, especially those above 500 grams, bearing the brunt.
Meanwhile, Dabur may also consider another round of price hikes in the fourth quarter of the current fiscal, its chief executive officer (CEO) Mohit Malhotra said.
They said that Inflation a matter of great concern And so far there are no signs of any softening.
How this happens remains to be seen. In the meantime, we will keep you informed of the latest developments in the sector.
Shares of HUL and ITC are trading down 1% and 1.5% respectively.
Speaking of HUL, here is an interesting data on the stock, Between 2002 to 2010, HUL share price went nowhere… Take a look at the chart below:
The journey of no return in the so-called safe stock
Stock was originally in an 8-year coma. The returns could barely even compensate for inflation.
However, in the period from 2010 to 2020, HUL gave a huge return of 30% CAGR!
In the latest developments in the IPO sector, global investors are said to have held preliminary discussions regarding the proposed anchor book allocation. Initial Public Offering (IPO) of Life Insurance Corporation (LIC).
These investors include Blackstone, BlackRock, Abu Dhabi Investment Authority, Government of Singapore Investment Corp and Capital International.
The 10 investment banks handling the issue are reaching out to over 100 top global fund managers, sovereign and pension money managers and private equity funds.
Reports suggest that the share sale could value the insurance company at around US$110 billion.
It is being said that the Finance Ministry is yet to take a final decision on the IPO timeline. The IPO is expected to take place in the March 2022 quarter.
Earlier this month, DIPAM secretary Tuhin Kanta said,
We are working very hard on LIC’s IPO. This will be a huge event for the capital markets in the first quarter of 2022.
The government is looking to sell up to 10% of its stake through IPO as well as issue fresh shares to expand the insurer.
starting from the initial capital of 50m in 1956, LIC’s asset base surpasses 38 lakh crore with a total investment of 36.8 lakh crore and one Jeevan Nidhi 34.4 lakh crore at the end of March 2021, it had said two months ago.
How LIC’s IPO pans out remains to be seen. In the meantime, stay tuned for more updates from this area.
This article is syndicated from Equitymaster.com
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