A better night on Wall Street provided positive gains for Asian markets and a sharp jump in sentiment for US stocks.
Hang Seng is up 0.4% while Nikkei is trading up 0.2%. Shanghai Composite is trading on a flat note.
In US stock markets, Wall Street indexes closed sharply higher on Tuesday, following their gains in travel and tech stocks as well as Nike and Micron Technology, as stocks rebounded from a coronavirus-fueled path ahead of the session. .
The Dow Jones Industrial Average rose 1.6% while the Nasdaq gained 2.4%.
Back home, Indian stock markets opened on a positive note after the SGX Nifty trend. Benchmark indices mirrored global trends and rose up to 0.7% today.
Rakesh Jhunjhunwala backed footwear retailer Metro Brands made its debut at Dalal Street today. the company picked up Between December 10-14, through IPO, sold its shares in the range of $ 13.7 billion and 485-500 a copy.
BSE Sensex is trading up 427 points. Meanwhile, NSE Nifty is trading with a gain of 130 points.
Bharti Airtel and IndusInd Bank are among the top gainers today. On the other hand, Asian Paints is one of the biggest losers today.
BSE Mid Cap Index and BSE Small Cap Index are trading up 0.9% and 1.4% respectively.
All sectoral indices are trading in the green with the automobile sector and energy sector being the biggest buy.
Shares of Minda Industries hit a 52-week high today.
Zee Entertainment shares remain in focus today after the company and Sony Pictures Networks India Pvt (SPNI) announced that they have signed definitive agreements to merge Zee with SPNI and combine their linear network.
Rupee is trading at 75.57 against US Dollar.
Gold prices are trading with a fall of 0.1% 48,043 per 10 grams.
Meanwhile, silver prices are trading with a gain of 0.1%. 61,810 per kg.
Bullion is trading within a tight range as higher US Treasury yields and improved risk appetite counter concerns about the fast-spreading Omicron coronavirus variant.
In the news of the banking sector, the share price of Yes Bank is in focus today.
Private lender Yes Bank on Tuesday said it is planning to raise funds till 100 billion through various instruments including equities and bonds to support business growth.
The bank said in a stock exchange filing that its board has approved the fundraising proposal.
The Bank will seek approval from its shareholders, resulting in an extension on the current shareholder approval expiring on 28 February 2022.
Note that in March this year, Yes Bank shareholders approved with a majority for a 100 billion fund mop-up by way of equity or other securities.
At the time of the announcement of the second quarter results, the lender said it expects the capital base to increase in FY22 and will re-look at its plan to raise capital by the end of the year or at the beginning of FY 2023. Its advances had increased by 3.5% on a year-to-year basis 1.72 trillion by the end of September 2021.
In other news, the cabinet has not taken any decision on the privatization of two public sector banks (PSBs), which were announced by the government in the budget for 2021-22, Parliament was informed on Tuesday.
In the Union Budget for FY 2021-22, the government had announced its intention to privatize two public sector banks and approve a policy in the year. Strategic Disinvestment of Public Sector EnterprisesFinance Minister Nirmala Sitharaman said in a written reply to a question in the Rajya Sabha on Tuesday.
The objectives of the policy include enabling growth of public sector enterprises through private capital, technology and best practices, the minister said.
A bill related to privatization of public sector banks has been listed for the ongoing winter session of Parliament which ends on December 23.
It remains to be seen how the above developments pan out.
Coming to PSUs, take a look at the chart below which shows the performance of BSE PSU Index vis–vis BSE Sensex over the past few years.
see full image
As can be seen from the chart above, over the past decade, 100 rupees invested in BSE PSU index will fall 80, compared to almost 3x gains for the Sensex.
What Richa Agarwal, Lead Smallcap Analyst at Equitymaster writes about PSU stocks in an edition of Profit Hunter…
However, it would be foolish to paint all PSUs with the same brush. There are exceptions in this area, which put their personal peers to shame.
In a recent editorial, I shared an opportunity in a PSU stock that is riding and enabling an irreversible megatrend – digitization.
Moving on to the news from the FMCG sector, ITC has increased its stake to 27.34% in Delectable Technologies, a company that operates the Azgo app and vending machines selling snacks and other fast-paced consumer goods.
Cigarette to Hotel Group on Tuesday informed the exchanges that it has acquired 1,964 compulsorily convertible preference shares in the third tranche on December 20. Each of the 10 captivating technologies.
Two years ago, ITC had agreed to acquire up to 33.42% stake in Delectable Technologies. it announced that it would pay up to 75 m in four phases.
The company had said that the deal would strengthen the presence of its FMCG products in the emerging distribution channel of vending machines.
ITC shares are currently trading with a gain of 0.2%.
This article is syndicated from Equitymaster.com
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