Asian share markets are lower today the big test of a US consumer inflation report, while market sentiment took a dive as the likely collapse of a major crypto exchange spooked investors.

The Nikkei is down 1.2% while the Shanghai Composite is down 0.6%. The Hang Seng is the biggest loser, down 2%.

In US stock markets, Wall Street indices ended sharply lower on Wednesday as Republican gains in midterm elections appeared more modest than some expected.

The Dow Jones plunged 2% while the tech-heavy Nasdaq tumbled 2.5%.

Back home, Indian share markets are trading on a negative note, following the trend on SGX Nifty.

Benchmark indices extended losses today tracking weak global cues.

Adani Green, Eicher Motors, and Page Industries will report their earnings today.

The BSE Sensex is trading down by 481 points. Meanwhile, the NSE Nifty is trading lower by 136 points.

Dr Reddy's Lab and HUL are among the top gainers today. Axis Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index and the BSE Small Cap are trading lower by 0.3%.

Barring telecom, all sectoral indices are trading on a negative note with stocks in the auto sector, consumer durables sector, and banking sector witnessing most of the selling.

Among the best banking stocks, Axis Bank and ICICI Bank are down 1%.

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

Crude oil prices fell for a fourth day today on concerns that new Covid curbs in China, the world's biggest crude importer, will impact fuel demand.

The rupee is trading at 81.57 against the US$.

Yesterday, the rupee appreciated by 45 paise to close at 81.47 against the US dollar amid a fall in crude oil prices, dollar weakness, and sustained foreign fund inflows.

Gold prices are trading up by 0.1% at Rs 51,560 per 10 grams.

Meanwhile, silver prices are trading down by 0.4% at Rs 61,355 per kg.
 

BSNL's Deal with TCS to Roll Out 4G Networks

In news from the telecom sector, the government has approved Bharat Sanchar Nigam's (BSNL) plan to go ahead with a Rs 268.2 bn order to IT services provider Tata Consultancy Services (TCS) for rolling out the state-run telco's 4G network.

Officials aware of the details said the telco will soon give the purchase order to TCS for 100,000 sites.

As part of the deal, along with setting up the 4G sites, TCS will have to maintain the network for nine years.

BSNL, with some 111 million wireless subscribers, will aim to launch 4G services by December or January, and gradually roll out the network across the country.

Last month, TCS had proposed to supply overall core equipment within 12 months of the purchase order, while radio equipment supply will be completed over a period of 18-24 months.

Tejas Networks, a unit of Tata Sons, the parent company of TCS, is expected to locally manufacture the network equipment for BSNL.

After the start of 4G services, BSNL is aiming to launch 5G services by August next year. The expanded rollout of 4G and 5G will happen simultaneously.

Note that the latest 4G deal comes in the wake of the Rs 1.64 lakh crore bailout package for the carrier, which includes a grant of the spectrum, 4G launch, and funding of operations and capital expenses, among other elements.
 

Tata Motors Post Higher than Expected Loss; to Delist ADRs in 2023

Moving on to news from the automobile space, Tata Motors on Wednesday reported a September quarter loss of Rs 9.4 bn as against a loss of Rs 44.4 bn in the year-ago period. The loss was higher than estimated.

The auto major's consolidated revenue jumped 29.7% to Rs 796.1 bn which was in line with the Street expectations.

The company's EBITDA margin improved by 130 bps YoY in Q2 to 9.7%.

The top EV company said demand continues to remain strong but will remain a key monitorable in wake of global uncertainties.

Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence we aim to deliver strong improvements in EBIT and free cash flows in H2 FY23.

Jaguar Land Rover's (JLR) revenue was up 36% year-on-year (YoY).

Tata Motors said production and sales volumes are expected to improve with positive profit margins and cashflow expected in the second half of FY23 and free cash flow is expected to be near breakeven for the full financial year.

Apart from declaring results, the Tata group company also announced that it plans to delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) after January 2023 and terminate its ADS program.

The company said it has notified NYSE of its intent to voluntarily delist its ADS, each representing five ordinary shares of the company.

The last trading day of the ADSs on the NYSE is expected to be on or around 23 January 2023. Once the ADSs have been delisted from the NYSE, there would be no over-the-counter market trading of the ADSs in the US.

Speaking of Tata Motors, despite being a market leader in the EV segment and strong backing from the group, shares of the company have witnessed selling pressure in recent months.

Tata Motors' share price is falling owing to geopolitical tensions and reduced JLR sales.

As JLR accounted for 70-80% of Tata Motors' topline, the recent crisis in Europe among other geopolitical tensions has brought uncertainty for Tata Motors.

The fall in Tata Motors has also had an effect on Tata Motors DVR shares.

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