The Hang Seng rose 1.3% and the Shanghai Composite rose 0.1%. The Nikkei rose 0.8%.
In US stock markets, Wall Street indexes closed lower on Tuesday after Federal Reserve Chairman Jerome Powell signaled that the US central bank would consider accelerating the withdrawal of bond purchases as inflation risks mount.
The Dow Jones Industrial Average fell 1.9% while the Nasdaq fell 1.6%.
Back home, Indian stock markets have opened on a strong note. Riding on positive Asian cues and GDP data, benchmark indices advanced over 1% in early trade.
Markets began hiatus on the back of strong GDP growth of over 8% in the second quarter. With this, India remains the fastest growing large economy in the world.
BSE Sensex is trading up 554 points. Meanwhile, NSE Nifty is trading with a gain of 151 points.
IndusInd Bank and HDFC are among the top gainers today.
On the other hand, Dr Reddy’s Lab is the worst hit today.
BSE Mid Cap Index and BSE Small Cap Index are trading with gains of 0.3% and 0.1% respectively.
Sectoral indices are trading in a mix with metal sector and automobile sector stocks witnessing mostly buying.
On the other hand, Power Stock and Healthcare Stock are trading in the red.
Shares of Rajesh Exports and KPIT Technologies hit a 52-week high today.
Rupee is trading at 74.96 against US Dollar.
Gold prices are trading up by 0.1% 47,606 per 10 grams.
Meanwhile, silver prices are trading at 61,646 per kg.
Crude oil prices took some losses today after a sharp fall in the previous session, as major producers prepared to discuss how to respond to the threat of the Omicron variant hitting fuel demand.
In news from the IPO space, the initial public offering (IPO) of Tega Industries, a manufacturer of consumables for the mining industry, has opened for subscription today and will end on December 3.
the company is looking to raise 6 billion through public listing of shares, which is purely an offer of sale (OFS) of 13 million equity shares by promoters and existing shareholders.
trading at a premium to the company’s shares 310 per share Grey Market.
Tega Industries provides customized solutions for the mining, bulk material handling and transportation industry such as the manufacture of wear-resistant lining components required for grinding, shaping and more.
It has a product portfolio of over 55 mineral processing and material handling products. The company has six manufacturing sites, three in India and three major mining centers in Chile, South Africa and Australia.
In other news, most domestic mutual funds opted out of Star Health & Insurance’s share sale ahead of the IPO due to differences on valuation.
Rakesh Jhunjhunwala Backed Insurer’s 72.5 billion IPOs, third largest in 2021, raised 32.2 billion from 62 funds as part of the anchor allocation on Monday but only one mutual fund participated in the process. Plans of Edelweiss Mutual Fund that Invest in IPOs 148.8 m in langar allotment.
Reportedly, mutual funds had raised concerns about rich valuations in the company’s IPO roadshow.
On Tuesday, the first day of bidding, Star Health’s issue was subscribed 12 per cent. While the retail segment saw bids for 64%, the qualified institutional investors and high net worth individual categories were yet to subscribe.
Star is the largest retail health insurer with 31% market share. The company has recorded a loss of 8.3 billion for the year ended March 2021, compared to a profit of 2.7 billion in FY21.
How these IPOs proceed, remains to be seen.
Stocks are moving up on specific news…
NMDC is one of the top trending stocks today.
State-owned mining company NMDC cut one-time ore prices by how much on Tuesday? 750 per ton and fine 200 per tonne, with immediate effect.
In a regulatory filing, the company said it has revised the rates of lump sum ore or high grade ore 5,200 per tonne.
Whereas the cost of lump sum ore or low grade ore is fixed at 4,560 per tonne.
The prices do not include royalty, district mineral fund, cess, forest permit fee and other taxes, NMDC said in a filing.
The company had fixed the rates of lump sum ore on November 5. 5,950 per tonne, and fined thereon 4,760 per tonne from 4 November 2021.
Note that iron ore is the main steel making raw material. Changes in its prices have a direct impact on steel prices. NMDC is the largest iron ore producer in the country.
NMDC share price is currently trading up 1.4%.
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.
This article is syndicated from Equitymaster.com
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