Sensex wins 150 points, Nifty approaches 17,450; Top HCL Tech and HUL Winners


The Hang Seng is down 0.2%. Markets in China, South Korea and Taiwan are closed for holidays today.

In US stock markets, Wall Street indices slipped overnight and saw their biggest drop since May.

The Dow Jones Industrial Average fell 1.8% while the Nasdaq Composite fell 2.2%.

Back home, Indian stock markets opened on a positive note, following the trend on SGX Nifty.

The ESB Sensex trades 149 points. Meanwhile, the NSE Nifty is trading up 38 points.

HCL Tech and HUL are some of the top winners today. Maruti Suzuki, meanwhile, is one of the big losers today.

The BSE Mid Cap index opened on a flat note while the BSE Small Cap index trades down 0.5%

Sector indices trade in a blended fashion, with real estate and metals stocks witnessing most of the buying.

Energy stocks, on the other hand, are trading in the red.

Shares of Godrej Properties and Avenue Supermarts hit their 52-week highs today.

The rupee is trading at 73.58 against the US dollar.

Gold prices are trading down 0.2% at ??46,196 for 10 grams.

Meanwhile, silver prices are trading down 0.1% to ??59,635 per kg.

In financial industry news, SBI Cards is among the hottest stocks today.

Private equity firm Carlyle Group will sell nearly half of its stake in SBI Cards and Payment Services for up to $ 443 million.

CA Rover Holdings, an entity of Carlyle, which in June 2021 held a 6.5% stake in SBI Cards, will sell around 32 million shares through a block transaction.

It will offer the shares in an indicative price range of ??1,021 to??1,072.3 each.

This sale follows Carlyle’s sale of a 5.1% stake in SBI Cards for??48.1 billion in June, while in March, it unloaded a little more than 4% for about??38 billion through block operations.

Sales of units followed the public listing of SBI Cards in March of last year. Carlyle sold a 10% stake in SBI Cards for approximately??70 billion, marking the largest outflow of private equity through a first sale of shares in India.

Note that last month, Carlyle completed a block transaction to sell its remaining stake in life insurer SBI Life Insurance for approximately $ 289 million.

The SBI Cards share price opened the day down 4.5%.

Turning to banking industry news, HDFC Bank and Paytm on Monday announced plans to launch a line of credit cards powered by the global Visa card network in October.

The above developments come a month after the Reserve Bank of India (RBI) partially lifted the ban on HDFC Bank, allowing it to restart credit card issuance.

Credit cards will be customized to meet the distinct needs of retail customers, from new users on credit to affluent users, and will offer one of the best rewards and cash backs to users.

This launch is slated for October to coincide with the holiday season to take advantage of potentially higher consumer demand for credit card offers, EMIs, and buy now and pay later options.

As part of this partnership, HDFC Bank and Paytm will introduce business credit cards, offering a host of benefits to merchant partners in small towns and villages across India.

According to a leading financial daily, with over 51 million credit, debit and prepaid cards and over 2 million merchants, one in three rupees spent on cards in India occurs on HDFC Bank cards.

In other news, HDFC Bank plans to double the amount of loans it makes to retail borrowers over the next two years as consumer demand increases after a pandemic-induced slowdown.

In an interview, Arvind Kapil, the bank’s national head of retail assets, said uncertainty is diminishing and demand is improving as businesses seek to support growth after Covid-19.

If that succeeds, it would mark a sharp turnaround from its strategy a year ago when the bank slowed its lending to individuals to protect the quality of its assets.

HDFC Bank’s share of retail lending as part of its total fell to 47% in March, the lowest in at least five years, from an average of 54% to 55% previously.

HDFC Bank’s share price opened the day up 0.2%.

Note that HDFC Bank is a bank that has always adapted to changing times.

HDFC Bank wanted to move from a leader in physical banking to a leader in online banking. Since then, HDFC Bank has consistently focused on the digital switchover.

In 2004, only 10% of customer transactions were initiated via the internet and mobile. The number rose to 92% in 2019.

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This is a great example of a business that took advantage of its size and embraced disruption rather than fear it.

These are characteristics that one should look for in stock selection. They not only resist disruption, but also benefit in the long run.

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