The Nikkei slid 0.8% and the Shanghai Composite 1.9%. Hang Seng is down 0.3%.
In US stock markets, Wall Street indices saw another bumpy ride on Friday with the Nasdaq recovering ground lost in the previous session, as Amazon’s positive earnings capped a week of mixed big-tech numbers.
The Dow Jones closed flat while the Nasdaq Composite rose 1.6%.
Back home, Indian stock markets are trading on a negative note. The benchmark indices started on a muted note but fell as the session progressed, tracking the weakness of the previous session and FII activity.
Net-net, foreign portfolio investors (FPIs) have turned sellers of domestic stocks to the tune of 22.7 billion, suggested data available with NSE. DII turned net sellers 6.2 billion, the data suggests. FPI pulled out 36.3 billion from equities during February 1-4.
Weak global cues also weighed on sentiment amid a pick-up in US bond yields.
Market participants will be tracking the stocks of Policybazaar, Tube Investments of India, Union Bank of India, TVS Motor Company and Minda Industries as these companies announce their December quarter results today.
BSE Sensex is trading with a fall of 286 points. Meanwhile, NSE Nifty is trading with a decline of 53 points.
Hindalco and ONGC are among them top beneficiary Today. On the other hand, Hero MotoCorp is the biggest loser today.
BSE Mid Cap Index is up 0.2% while BSE Small Cap Index is trading up 0.4%.
Sectoral indices are trading in tandem with stocks in IT sector and finance sector witnessing selling pressure.
On the other hand, realty stocks and oil & gas stocks are trading in the green.
Shares of Deepak Fertilizers and GMDC reached 52-week high today.
Dr Reddy’s Labs fell 1% after rising over 5% in early trade after the Drug Controller General of India (DCGI) approved the single-shot Sputnik Lite vaccine for restricted use in emergency situations in India.
Rupee is trading at 74.71 against US Dollar.
Gold prices are trading with a gain of 0.3% 48,050 per 10 grams.
Meanwhile, silver prices are trading higher by 1.2% 61,582 per kg.
Gold rose today as rising concerns over rising price pressure eroded the metal’s appeal as an inflation hedge and helped ease pressure from higher US Treasury yields following a surprisingly upbeat jobs report.
Crude oil prices reversed earlier losses, as investors held bullish sentiment on expectations that global supplies will remain tight as demand picks up and signs of progress in US-Iran nuclear talks show.
In news from the power sector, NTPC is one of the top buzzing stocks today.
State-run power company NTPC on Saturday said that its 74.88 MW power generation capacity is commercially operational at Fatehgarh Solar PV Project in Rajasthan’s Jaisalmer.
Here’s what the company said in the exchange filing,
As a result of successful commissioning, 296 MW Fatehgarh Solar PV Project at Jaisalmer, Rajasthan, out of 296 MW Part II capacity of 74.88 MW has been declared on commercial operation from 00:00 hrs. February 5, 2022.
This takes the commercial capacity of NTPC and NTPC Group to 54,377.30 MW and 67,832.30 MW respectively.
Note that last week, NTPC delivered strong December quarter results with 5% PAT outperformance led by better realizations.
NTPC is expanding 1.3GW Talcher Thermal (another 5.3GW under consideration) which will be based on Carbon Capture/Blue Coal technology.
The company’s management is confident of 15GW of RE capacity (7.5GW being implemented) by FY2025 – 40% capital expenditure mix towards RE. NTPC has a unique advantage of leveraging its thermal plants to blend RE and supply RTC power.
NTPC share price is currently trading with a gain of 0.2%.
In other power sector news, Tata Power is in talks with investors to raise $600-700 million for the renewable energy business at an equity valuation of around $6-7 billion.
The deal is in an advanced stage and is likely to conclude in the coming weeks, as the salt-to-steel conglomerate looks to reduce debt and strengthen its balance sheet ahead of a planned public issue of the alternative energy unit.
Last year, Tata Power decided to club its entire renewable portfolio under one umbrella unit. This includes operating power assets in pipelines, charging stations, rooftop solar, microgrids, panel manufacturing, engineering, procurement and construction.
The company also had plans to go for InvITs. It had held talks with Malaysia’s Petronas for a potential investment of up to $2 billion, but the talks could not end in a single transaction.
Tata Power has one of India’s largest renewable energy businesses, with an operating capacity of 2.6 GW comprising wind and solar in a 32:68 ratio spread across 11 states.
Coming to Tata Power, take a look at the chart below which shows how well it has performed on the stock markets.
see full image
Moving on to the news from the automobile sector, Maruti Suzuki expects production activity to improve in the current quarter and will improve gradually. Supply of critical electronic components,
The country’s largest carmaker is also looking at ways, including consolidating its SUV portfolio, to capture 50% market share in the domestic passenger vehicle segment in the coming years.
The cumulative market share of the auto major currently stands at around 44% as it continues to struggle in the mid-sized SUV segment.
In an analyst call, the company said that an estimated 90,000 vehicles could not be produced during the third quarter, as the global shortage of semiconductors is in line with most domestic models.
Presently, MSI has a cumulative production capacity of around 5.5 lakh units per quarter or about 22 lakh units per year at its manufacturing plants in Haryana and Gujarat.
Maruti Suzuki is sitting on a backlog of around 2.6 lakh units, which includes CNG units at 1.17 lakh units.
To a query related to market share, the company said it would be difficult to go above the 50% mark by the end of the current financial year due to production constraints.
The share price of Maruti Suzuki is currently trading with a gain of 0.1%.
(This article is syndicated from) equitymaster.com,
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