The Hang Seng and Shanghai Composite are trading up 0.1% and 0.2%, respectively. Nikkei is trading with a decline of 0.3%.
US stock markets were closed on Friday on account of Christmas.
On Thursday, the Wall Street index closed at a holiday-shortened week high as investors digested economic data and developments related to the spread of Omicron Editions.
The Dow Jones Industrial Average rose 197 points, or 0.6%, while the S&P 500 gained 29 points, or 0.6%, and the Nasdaq Composite 132 points, or 0.9%.
After returning home, the Indian stock market opened in red today. Markets have recovered some losses but are still trading in negative territory.
Several states like Delhi, Karnataka, Maharashtra imposed new restrictions in view of the rising Kovid-19 cases, which affected the sentiment.
Meanwhile, adhesives and sealant company HP Adhesives made a good start at Dalal Street today. the company picked up 1.25 billion through its primary offering between December 15-17, the company sold its stake in the range of 262-274 each.
BSE Sensex is trading with a fall of 206 points. Meanwhile, NSE Nifty is trading with a decline of 63 points.
Power Grid is among the top gainers today. On the other hand, IndusInd Bank and Asian Paints are the biggest losers today.
The BSE Mid Cap Index is down 0.4%. BSE Small Cap Index is trading on a flat note.
Sectoral indices are trading in a mix with realty sector, metal sector and banking sector witnessing maximum selling.
Financial stocks are in focus today after the RBI accepted an internal working group recommendation to allow non-promoters to hold up to 15% in private sector banks.
Shares of La Opala RG and KPIT Technologies hit a 52-week high today.
Rupee is trading at 75.08 against US Dollar.
Gold prices up 0.2% 48,203 per 10 grams.
In global markets, gold traded higher today, staying above key US$1,800 an ounce levels as US Treasury yields were slightly weaker, propelling the dollar.
Crude oil prices are mixed today, with gains in Brent, while US crude futures slipped as airlines shut thousands of flights to the US over the Christmas holidays amid COVID-19 infections.
In banking sector news, RBL Bank is one of the top buzzing stocks today.
Private lender RBL Bank held a press conference at 4:00 pm on Sunday, December 26, a day after two important developments at the bank.
The bank announced that the Reserve Bank of India (RBI) has appointed Yogesh Dayal, Chief General Manager in-charge of the Department of Communications, as an additional director on the board of RBL Bank.
Meanwhile, the bank also said that its board has approved the request of its MD and CEO Vishwavir Ahuja to go on leave with immediate effect.
Vishwavir Ahuja joined RBL Bank in 2010. Prior to this, he was the MD and CEO of Bank of America, India from 2001 to 2009.
At the press conference, RBL Bank said a day after its top executive stepped down, there was room for tremendous improvement in its business fundamentals.
In recent months, reports had emerged that some employees of the bank sought the finance ministry’s support to oversee operations as they believed the regulatory framework was being ignored by the bank’s top management.
The company’s interim MD and CEO Rajiv Ahuja said that the MFI sector can always face challenges, so the bank has to be careful and diversified.
Here is an excerpt:
Don’t expect the MFi book to affect our numbers in the future. We are carefully pocketing our MFI book and other engines of the bank will remain sluggish till MFI picks up. There is no need to raise any capital in the next 8-12 months.
Note that an industry trade union – All India Bank Employees Association (AIBEA) has written to Finance Minister Nirmala Sitharaman asking the government to protect the interest of depositors in RBL Bank and consider merging it into a state-owned bank. Said.
The action for RBL Bank assumes significance in light of the problems faced by private lenders such as Yes Bank and Lakshmi Vilas Bank last year.
RBL’s total advances have doubled in the last few years. from about 290 billion in 2017, advance crosses Now 580 billion, AIBEA said.
There are also reports that RBL Bank has been indulging in retail credit, micro-financing and credit cards and has consequently burnt its finger resulting in financial dilution, AIBEA said.
RBL Bank shares are currently trading with a fall of 20 percent.
Moving on to news from the engineering sector, the board of Kabra Extrusion met on Saturday to discuss raising funds through debt and equity for the expansion of its future technologies brand, Batrix.
Batrix, part of Kabra Extrusion, offers advanced lithium-ion battery pack With smart battery management systems to power the growth of India’s transition to green energy storage and electric mobility.
Promoters and other investors have shown confidence in infusing more capital into Battrix, which will be used to drive the brand’s growth in the electric mobility space.
Total 1.1 billion will be raised initially through issuance of warrants to promoters and foreign investors. According to reports, these funds will be able to increase their annual production capacity from the current 100,000 battery packs to 700,000 by the end of fiscal year 2024 to meet the growing demand in the electric vehicles (EV) industry and other energy storage applications.
The board of the company also approved to raise necessary additional working capital till 2 billion from financial institutions.
Anand Kabra, Vice President and Managing Director, Kabra Extrusions, said:
We are excited about the business, especially what we are doing in the electric vehicle (EV) space. We have clear goals and will use the funds to increase capacity, upgrade machinery, and further research and development. We look forward to being a part of the EV revolution.
note that lithium ion batteries The market size in India is projected to increase from 2.9 GWh in 2018 to 800 GWh by 2030. In India, the central government has approved Phase-II of its FAME scheme with an outlay of 100 billion over three years starting 1 April 2019, 86% of the budget allocated for incentives to generate demand for EVs.
We will keep you informed about the latest developments in this field. stay tuned.
The share price of Kabra Extrusion is trading up 7.9%.
Coming to EVs, take a look at the chart below which shows the huge opportunity in two wheeler EVs. Richa Agarwal, Smallcap Analyst at Equitymaster, wrote about this in a recent edition of Profit Hunter:
In the last five years, two-wheeler sales in India stood at around 20 million units per year. Now the sector is cyclical and has been bearish for some time. So let’s consider a moderate growth of 5% for the next 10 years.
By 2030, we are expecting 2-wheeler sales of 30 million units. Even if it has a third of EV sales, that’s 10 million electric 2-wheelers per year.
In the last 2 years, the average electric 2-wheeler sales were 1.5 lakh units. From 1.5 lakh to 1 crore, 2-wheeler EV has 66 times the opportunity.
see full image
This is an annual growth rate of 52% over the next 10 years. It’s an almost vertical growth opportunity.
According to Richa, it is like a gold rush. But like any gold rush, there will be few winners.
(This article is syndicated from) Equitymaster.com,
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,