Sensex trades on weak global cues; Paytm shares made a weak debut

The Nikkei fell 0.8% and the Hang Seng 1.4%. Shanghai Composite dropped 0.2%.

In US stock markets, Wall Street indices edged lower on inflation fears stemming from retailers’ earnings and supply chain concerns.

The Dow Jones Industrial Average fell 0.6% and the Nasdaq 0.3%.

Back home, Indian stock markets are trading on a flat note.

BSE Sensex is trading with a fall of 178 points. Meanwhile, NSE Nifty is trading with a fall of 69 points.

Bajaj Finance and Bajaj Finserv are among the top gainers today. On the other hand, HCL Tech is one of the biggest losers today.

BSE Mid Cap Index and BSE Small Cap Index are trading lower by 0.6% and 0.4% respectively.

Barring finance, all sectoral indices are trading with the biggest sell-off in pharma sector and metal sector stocks.

On the other hand, realty stocks and auto stocks are trading in the red.

Shares of Solar Industries and Trident hit 52-week highs today.

Rupee is trading at 74.19 against US Dollar.

Gold prices are trading lower by 0.2% 49,207 per 10 grams.

Meanwhile, silver prices are trading with a fall of 0.4%. 66,390 per kg.

Crude oil prices came under pressure, falling overnight on reports that the United States was asking major oil consumers such as China and Japan to consider a coordinated release of oil reserves to lower prices.

In News from Electric Vehicles Encouraged by the demand for EVs in the (EV) space, the last mile delivery segment, Tata Motors will soon launch an EV model for this segment.

Girish Wagh, Executive Director, Commercial Vehicle Business Unit, Tata Motors said that it is working with e-commerce companies to understand their requirements with regard to range and performance.

The company is also working on the cargo segment, he added.

Here’s what he said at a round table conference:

With the increasing awareness about EVs, the last mile delivery segment has a good vibe to offer for EVs. We have studied this area in detail and are trying to give a solution, not just a vehicle.

While the launch is still a few months away, we are already working with some of the end users to understand their needs.

Note that its rival Ashok Leyland also has plans to launch EV offerings in the last mile delivery segment. Its EV arm, Switch Mobility, will launch its first Electric Light Commercial Vehicle (e-LCV) in India by the end of December. For this it has got 2,000 orders.

The group plans to invest US$150-200m in the EV space over the next few years.

Meanwhile, with better availability of CNG and higher diesel prices, Tata Motors has seen a significant increase in the demand for CNG powered vehicles in the range of 5 tonnes to 16 tonnes. It now accounts for 41% of total sales.

Tata Motors shares are currently trading with a fall of 2.6 percent.

Coming to EVs, take a look at the chart below which shows the massive opportunity in two wheeler EVs.

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.

According to Richa, it is like a gold rush. But like any gold rush, there will be few winners.

Moving on to the news from the IPO arena, market participants are closely tracking the shares of Paytm’s parent company One97 Communications, as it launched Dalal Street today.

Paytm shares made a weak start and got listed on the stock exchanges at a loss of over 9% from their issue price.

listed on scrip 1,950.00 each on the National Stock Exchange (NSE).

India’s biggest ever IPO worth Was open for subscription between 8-10 November in the price range of 183 billion 2,080-2,150 per share.

Meanwhile, Sapphire Foods India, the operator of QSRs like KFC, Pizza Hut and Taco Bells in India, Sri Lanka and Maldives, also made its debut.

In other news, the huge profits private equity (PE) investors are making from selling startups in several recent IPOs have come under the lens of India’s market regulator.

The regulator has noted that these investors buy shares of startups at low prices and later sell them through IPOs at attractive valuations.

To increase transparency in disclosure, the regulator now wants merchant bankers to clearly state the cost of acquisition of large investors such as PE in IPO advertisements.

In a release to merchant bankers on Wednesday, here’s what the regulator said:

Investors’ risks will include the weighted average cost of acquisition of all shares made in the last three years and one year from the date of the RHP (Red Herring Prospectus).

The regulator further said that the risk-related portion for investors shall be at least 33% of the price band ad space.

Reports say that the move will help individual investors gain access to information on entry and exit pricing of institutional and large investors. Recent Startup IPO getting a high rating.

This will also help small investors to get an idea of ​​their entry price as most of these companies are currently making losses.

Note that about half a dozen new age companies have launched their IPOs in recent months. The acquisition cost of institutional investors was one-third of their selling price through the IPO.

The demand for shares of some of these companies has been very high. Take Nykaa and Zomato for example, their offerings saw a lot of bidding in the public offering.

Similarly, Policybazaar, Easy Trip and CarTrade received high bids.

We will keep you informed about the latest developments in this field. stay tuned.

This article is syndicated from Equitymaster.com