The Hang Seng is down 0.3%, while the Shanghai Composite is trading up 0.7%. Nikkei is trading with a decline of 0.1%.
Wall Street indices closed mixed in US stock markets on Friday amid rising concerns about rising cases of Kovid-19 in the US and Europe.
Shares of large technology companies helped the stock market rally otherwise renewed anger over Covid-19.
The Dow Jones Industrial Average fell 269 points, or 0.8%, while the Nasdaq Composite closed up 64 points, or 0.4%.
Back home, the Indian stock markets opened in the red.
BSE Sensex is trading with a fall of 620 points. Meanwhile, NSE Nifty is trading with a fall of 177 points.
Bharti Airtel is among the top gainers today. On the other hand, Reliance and Bajaj Finance are among the biggest losers today.
Both BSE Mid Cap Index and BSE Small Cap Index are trading lower by 0.8%.
Sectoral indices are trading on a mixed note and energy sector and consumer durables sector are seeing the biggest selling pressure.
Whereas telecom shares are trading in the green.
Shares of Raymond and Bharti Airtel hit 52-week high today.
Rupee is trading at 74.33 against US Dollar.
Gold prices are trading with a fall of 0.1% 48,810 per 10 grams.
Gold today stabilized at its lowest level in nearly two weeks as the metal found some support on a softening dollar.
Crude oil prices fell to a seven-week low, extending the fall after the previous session’s slide, on concerns about excess supplies by Japan as it crippled the release of oil reserves and the worsening Covid-19 situation in Europe. was weighing more than the demand.
In the news from the automobile sector, the Indian automotive sector is getting investment after a gap of almost half a decade.
This is due to increased electrification and aggressive growth plans by global automotive players, setting the stage for a resurgence in investor sentiment.
Last week, Japanese multinational Kubota Corp said it would affect To become a majority stakeholder of ₹94 billion in agri-machinery and tractor maker Escorts.
Meanwhile, Texas-based TPG Capital Management said in October that it would invest 75 billion in the newly created electric vehicle (EV) subsidiary of Tata Motors.
RC Bhargava, Chairman, Maruti Suzuki said that the auto sector is witnessing huge investments related to EV infrastructure and the technology space has huge potential.
Also, one must note that for most of the last year the increased funds have come despite the nationwide lockdown due to the virus outbreak, which has hurt investment sentiment as well as demand in the auto and ancillary sectors.
According to industry experts, the EV ecosystem in India is at a turning point and has emerged as an attractive investment proposition. The new funding is expected to be primarily used to expand production capacity in R&D and future technologies and to develop an international footprint.
Considering the incentives from the central and state governments, especially the two wheelers will see higher growth in the current financial year.
The automobile sector, which saw foreign direct investment (FDI) of US$16.5 bn between 2000 and 2016, is expected to see US$8-US$10bn investment by 2023. This will help the domestic industry touch US$300bn by 2026 – a significant increase from US$118bn by 2020.
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.
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 only a few winners.
Talking about the news of the pharma sector, Sun Pharma is one of the most discussed stocks today.
Sun Pharma is recalling more than 1.10 lakh bottles of a generic drug used to treat erectile dysfunction in men in the US market due to a manufacturing error.
The US arm of the domestic pharma major is recalling Tadalafil tablets in the US market, according to the latest enforcement report by the US Food and Drug Administration (USFDA).
The Mumbai-based drug major is recalling the product in 30-count bottles of 5 mg and 20 mg strengths.
The USFDA said a large part of the affected drug was manufactured in India by the drugmaker and distributed in the US by Princeton, New Jersey-based Sun Pharmaceutical Industries Inc.
Elaborating on the reasons for the Class II recall, the USFDA said: “An incorrect grade of crospovidone was used to manufacture the product.”
Class II recalls are initiated in a situation where the use of, or exposure to, an infringing product could result in temporary or medically reversible adverse health consequences or where the potential for serious adverse health consequences is very small.
Earlier this month, Sun Pharma began recalling 22,752 blister packs of Loratadine-D extended-release tablets used to treat allergic rhinitis and the common cold in the US market.
Sun Pharma shares are currently trading with a gain of 0.1%.
To know more about the company, visit Sun Pharma’s 2020-21 Annual Report Analysis,
(This article is syndicated from Equitymaster.com,
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