The Hang Seng is down 1.3% while the Shanghai Composite is up 0.4%. Nikkei is trading with a decline of 0.6%.
In US stock markets, Wall Street indices traded choppy on Friday amid uncertainty around the Omicron coronavirus version and a tightening of Federal Reserve policy.
The November jobs report showed lower-than-expected job creation last month. However, the unemployment rate fell sharply to 4.2%, better than the estimate of 4.5%.
The Dow Jones Industrial Average fell 60 points, or 0.2%. The technology-focused Nasdaq Composite dropped 1.9%, or 296 points.
Back home, Indian stock markets are trading on weak global cues.
BSE Sensex is trading down 242 points. Meanwhile, NSE Nifty is trading with a decline of 65 points.
Tata Steel and L&T are among the top gainers today. On the other hand, Maruti Suzuki is the biggest loser today.
Both BSE Mid Cap Index and BSE Small Cap Index are trading on a flat note.
Barring realty and capital goods sector, all sectoral indices are trading in the red with IT sector and energy sector selling the most.
Shares of Vodafone Idea and La Opala RG hit a 52-week high today.
Rupee is trading at 75.21 against US Dollar.
Gold prices are trading up by 0.1% 47,961 per 10 grams.
Meanwhile, silver prices are trading higher by 0.3%. 61,683 per kg.
Gold held steady today as market participants weighed the prospect of a sharp end to pandemic-era asset purchases by the US Federal Reserve, as data suggested the labor market was tightening sharply.
Crude oil prices rose by more than US$1 a barrel after top exporter Saudi Arabia sold crude to Asia and the United States, and indirectly helped revive the US-Iran nuclear deal. Negotiations hit a deadlock.
According to an article in Electric Vehicles (EVs) in News from Space The Economic Times, India’s central bank is considering a proposal by NITI Aayog to classify loans for buying EVs under the priority sector lending (PSL) segment.
If the offer is accepted, it will help the segment to get loans at lower interest rates. Currently, these loans are given under the auto retail category, but lenders are wary about financing the purchase of electric vehicles as they are uncertain about the risks in a segment that is still at an early stage.
NITI Aayog chief executive Amitabh Kant confirmed that the government’s policy think tank has made the proposal.
Kant said it considered the potential of EVs in reducing greenhouse gas emissions and helping India in its fight against climate change.
that she said The inclusion of electric vehicles under PSL will not only reduce the cost of finance but will also make finance available to more people, thus Growing penetration of electric vehicles in India,
Kant said that the process of inclusion of electric vehicles under PSL requires extensive consultation and consultation to achieve the targeted outcome of increased access to finance and lower cost in the sector.
Reportedly, manufacturers of electric two-wheelers and three-wheelers have also made representations to the banking regulator for PSL status.
Under the PSL framework, 40% of the total credit of lenders should mandatorily be given to specific sectors. These sectors include agriculture, small business, export credit, education, housing, social infrastructure and Renewable energy,
Note that EV sales more than tripled to 118,000 units in the first half of the current fiscal, also as a reduction of semiconductors Forcing automakers to cut production of vehicles that run on fossil fuels.
Experts say that the increase in EV sales is due to both demand and supply factors. Access by manufacturers, better charging infrastructure, price parity with conventional vehicles due to federal incentives and falling battery prices are driving sales.
We will keep you informed about the latest developments in this field. stay tuned.
Coming to EVs, take a look at the chart below which shows the massive opportunity in two wheeler EVs.
see full image
Richa Agarwal, Smallcap Analyst at Equitymaster wrote about this in a recent edition 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.
According to Richa, it is like a gold rush. But like any gold rush, there will be few winners.
Moving on to banking sector news, Federal Bank share price is in focus today.
Federal Bank has sold its debt exposure in Chenani Nashri Tunnelway (CNTL) to Ares SSG Capital-backed asset reconstruction company at a discount of 25%.
The Kerala-based lender sold the loan after road property owner, IL&FS Transportation Network (ITNL), failed to close the deal it signed nearly a year ago with I Square Capital-backed Cube Highways to sell CNTL Stayed.
Federal Bank recovered about 75 paise on one rupee by selling its 2.1-Bn Loan to Asset Care and Reconstruction Enterprise (ACRE).
Cube Highway introduced 39 billion, meaning a recovery of about 82% for the lenders. But the long moratorium date of the settlement expired on August 30 this year, prompting the private bank to consider an out-of-court settlement.
Federal Bank shares are currently trading with a decline of 0.5%.
In other news from the banking sector, According to a survey of economists and traders, the Reserve Bank of India (RBI) is likely to keep its key interest rate and monetary stance unchanged while announcing the policy on Wednesday. RBI’s Monetary Policy Committee meeting is being held on 6-8 December.
Reports said the central bank could also provide commentary aimed at restraining bond yields and indicate that it is moving to normalize monetary conditions to avoid a future price spiral.
Apart from interest rates, the MPC will deliberate on prices, the state of the economy and monetary conditions in its three-day meeting, with new restrictions on the movement of people at risk of impacting economic recovery.
How this development progresses remains to be seen.
This article is syndicated from Equitymaster.com
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