Benchmark indices closed lower for the second day in a row today as rising bond yields continued to drive investors away from riskier asset classes.
The 10-year US Treasury yield hit 1.9% today, its highest point since December 2019.
The BSE Sensex closed with a fall of 656 points (1.1%) at the closing bell.
Meanwhile, NSE Nifty closed with a fall of 175 points (down 1%).
ONGC and Tata Motors were among them top beneficiary Today.
On the other hand, Infosys and Shree Cement were the biggest losers today.
At the time of writing the news, SGX Nifty was trading at 17,975 with a fall of 164 points.
The broader markets outperformed the headline index.
BSE Midcap index closed 0.3% lower, while BSE Smallcap index closed on a flat note.
Sectoral indices closed on a mixed note with IT sector and telecom sector seeing the most selling pressure.
On the other hand, buying interest was witnessed in power and metal stocks.
Shares of Tata Alexi and Chambal Fertilizers today hit their 52-week highs.
Asian stock markets today closed on a negative note.
The Hang Seng edged up 0.1%, while the Shanghai Composite ended 0.3% lower. Nikkei closed down 2.8% in today’s trading session.
US stock futures are trading on a flat note today, with Dow futures trading up 32 points.
Rupee is trading at 74.42 against US Dollar.
Gold prices up 0.1% for latest contract on MCX 47,964 per 10 grams.
In news from the power sector, India Energy Exchange was one of the most talked about stocks today.
India Energy Exchange (IEX) announced the sale of 4.93% equity stake in its subsidiary Indian Gas Exchange (IGX) to oil marketing company Indian Oil Corporation (IOC). IndianOil has joined the company as a strategic partner by acquiring stake from promoter IEX.
“IEX and IndianOil are pleased to announce the strategic equity stake of 4.93% of IndianOil in the Indian Gas Exchange. IEX has sold 4.93% equity stake to IndianOil,’ the energy exchange informed in an exchange filing.
IEX and NSE are the promoters of IGX and other strategic investors include GAIL (India), ONGC, Torrent Gas and Adani Total Gas.
IGX currently offers six delivery-based contracts for trading in gas including day, daily, weekday, weekly, fortnightly and monthly through five designated physical centers including Dahej, Hazira, Dabhol, Jaigarh and KG Basin.
SN Goyal, Chairman and Managing Director, IEX and Director, IGX, said,
IndianOil’s diversified and significant presence in the oil, gas, petrochemicals and fertilizers sectors augurs well in our joint effort to build the gas market in India to increase the share of gas in the energy mix to 15%. in line with the vision of the Government. by 2030.
IndianOil with its vast expertise in the gas sector will help in adding new products to the Indian markets.
Share price of India Energy Exchange rose 3.2% on BSE.
Moving on to the news of the auto sector…
Hero to manufacture electric vehicles as part of M&M strategic partnership
Mahindra Group announces strategic partnership with Hero Electric, one of India’s leading companies Electric Vehicle (EV) manufacturers, to meet the ever-increasing demand for electric vehicles in the country.
As part of the collaboration, Mahindra will manufacture Hero Electric’s Optima and NYX at its Pitampur plant to meet the growing demands. This partnership will create multiple synergies to help promote adoption across the country.
With this collaboration, along with the expansion of its existing Ludhiana facility, Hero will be able to meet its demand of manufacturing over one million electric vehicles per year by 2022.
This will further enable them to adopt a cleaner mode of transport. Joint development efforts will also be a key factor in developing platform approaches to help
Electrification of Peugeot motorcycle portfolio.
This dynamic, fast-moving global EV environment is expected to bring significant value to both parties through optimization of cost, timelines and shared knowledge.
On this announcement Naveen Munjal, MD, Hero Electric said,
Hero Electric has been a leader in the electric two-wheeler sector in the country. To further deepen its roots and strengthen its leadership, Hero Electric has announced a partnership with Mahindra Group, which is leading the EV transition in the electric three and four-wheeler space.
M&M share price ended the day up 0.3% on BSE.
Coming to EVs, take a look at the chart below which shows the massive opportunity in two wheeler EVs.
see full image
Here’s what Richa Agarwal, Smallcap Analyst at Equitymaster, wrote about it in the 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.
This is an annual growth rate of 52% over the next 10 years. It’s an almost vertical growth opportunity.
(This article is syndicated from Equitymaster.com,
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