The Hang Seng is down 0.7% while the Shanghai Composite is down 0.4%. Nikkei is trading with a decline of 0.8%.
In US stock markets, Wall Street indices eased on Friday after rising tensions in Ukraine and US warnings of a possible Russian invasion prompted investors to dump riskier assets for a long weekend.
The indices posted their second consecutive weekly loss after another turmoil in the market.
The Dow Jones Industrial Average fell 233 points, or 0.7%, while the Nasdaq Composite dropped 169 points, or 1.2%.
Back home, Indian stock markets are trading in the red.
The benchmark indices were set for a gap-down start to track the SGX Nifty trend amid volatility as there is no clear picture on the Russia-Ukraine standoff.
BSE Sensex is trading with a fall of 441 points. Meanwhile, NSE Nifty is trading with a fall of 134 points.
NTPC and IndusInd Bank are among the top gainers today. On the other hand, Titan and M&M are among the biggest losers today.
The broader markets are underperforming the benchmark indices. The BSE Mid Cap Index is down 1.1% while the BSE Small Cap Index fell 2%.
All sectoral indices are trading in the red with oil and gas sector stocks and consumer durables witnessing the biggest selloff.
Shares of TCPL Packaging and Kinametal India today hit a 52-week high.
Rupee is trading at 74.59 against US Dollar.
Crude oil prices rose more than US$1 in early trade today on rising panic over a possible conflict between Russia and Ukraine, with the US and European Union clarifying that Russia would face sanctions if it attacks its neighbour. Will have to face
Gold prices are trading up by 0.1% 50,121 per 10 grams.
Meanwhile, silver prices are trading with a fall of 0.5%. 63,600 per kg.
Gold rose to an eight-month high today as safe-haven demand eased after the US President agreed to meet with his Russian counterpart on the Ukraine crisis.
US President Joe Biden has agreed in principle to a summit with Russia’s Vladimir Putin on the Ukraine crisis after the two countries’ foreign ministers meet next week and if there is no aggression.
In global markets, spot gold fell 0.2% to USD 1,893.80 an ounce, having retreated from USD 1,908.02 – the highest level since June 3. While US gold futures are stable at USD 1,898.60.
Last week, buyers in major Asian hubs stopped buying physical gold as prices rose due to escalating Russia-Ukraine tensions, prompting Indian dealers to offer the highest discounts in nearly seven months.
Coming to the current stock market scenario, amidst the ongoing volatility, take a look at the two charts below, in the order they are placed:
Near term volatility in Sensex which is offset by long term gains
The year-on-year change in the Sensex was not predictable, but one who kept investing, increased every lakh by almost 14 times.
Market timing can be suicidal as valuations and volatility put the markets in see-saw mode.
As an individual investor, you need to stick to stocks with high conviction and invest consistently to see magic of compounding,
Because 2022 can be extremely profitable over time, provided you reset your portfolio with the right kind of safe assets and safe stocks.
In the latest developments in the IPO sector, FedBank Financial Services (Fedfina), promoted by Federal Bank, has filed preliminary papers with the capital markets regulator to raise funds through a . Initial Public Offering (IPO),
The public issue consists of a fresh issue that aggregates to As per the draft Red Herring Prospectus (DRHP), offer for sale (OFS) of 9 Bn and 45,714,286 equity shares by the promoter and investor.
Federal Bank will continue to own more than 51% of the outstanding share capital following the completion of this offering.
Fedfina proposes to use the net proceeds from the new issue to augment its Tier-I capital base to meet its future capital requirements arising out of growth of business and assets.
The company is a retail-focused NBFC and operates a twin engine business model with two complementary products – gold loan and installment loan for MSMEs and emerging self-employed individuals.
In other news, Archean Chemical Industries has sought approval to raise funds through IPO.
According to DRHP, this IPO will include a new issue OFS of up to 10 billion and 19.07 million shares by its existing shareholders and promoters.
Archean Chemical is a leading specialty marine chemical manufacturer in India focused on the production and export of Bromine, Industrial Salt and Sulphate of Potash to customers across the globe.
The firm manufactures products from saltwater reserves in the Rann of Kutch, located on the coasts of Gujarat, at a facility near Hajipir in the state. As of September 2021, it has marketed products to 13 global customers and 29 domestic customers in 13 countries.
It remains to be seen how these upcoming IPOs turn out to be successful.
Moving to news from the energy sector, Indian Oil Corporation (IOC) will set up green hydrogen plants at its Mathura and Panipat refineries by 2024 to replace carbon emitting units.
This comes as the IOC looks at the recently announced Green Hydrogen Policy A crucial moment in India’s energy transition that will help cut costs.
SSV Ramkumar, director of research and development at IOC, says the new policy will help cut the cost of manufacturing green hydrogen by 40-50%.
Oil refineries, fertilizer plants and steel units use hydrogen as a process fuel to produce finished products.
Hydrogen is used in refineries to remove excess sulfur from petrol and diesel. This hydrogen is currently produced from fossil fuels such as natural gas or naphtha and results in carbon emissions.
India’s largest oil company plans to replace this gray hydrogen with clean hydrogen using electricity from renewable energy sources such as solar or wind power to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis. To be.
Under the green hydrogen policy announced last week on February 17, renewable energy used for green hydrogen production will be given open access without central surcharge and zero inter-state for 25 years for projects commissioned before June 30, 2025. Transmission fee will be available.
This will reduce the cost. Ramkumar said that if the electrolysers are manufactured indigenously instead of the present practice of importing, the cost will come down further.
IOC plans to install 40 MW electrolyser at Mathura Refinery and 15 MW unit at Panipat unit in Haryana and aims to produce 70,000 tonnes of green hydrogen every year by 2030, which is 10% of its total consumption by that time. Is.
The share price of IOC is currently trading with a decline of 1.1%.
This article is syndicated from Equitymaster.com
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