Asian share markets are lower today as rare protests in major Chinese cities against the country's strict zero-Covid policy raised worries about the management of the virus in the world's second-largest economy.

The Nikkei is down 0.5% while the Hang Seng fell 1.9%. The Shanghai Composite is trading lower by 1%.

In US stock markets, Wall Street indices closed lower on Friday with pressure from Apple Inc in a subdued holiday-shortened trading session, as investors watched Black Friday sales and Covid-19 cases in China.

The Nasdaq slipped for the third day and lost 0.5% while the Dow Jones ended 0.5% higher.

Here's a table showing the performance of US indices and US stocks on Friday.

Data source: Equitymaster

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

Benchmark indices reverted losses after opening in red today, following Asian peers as news of growing unrest in China over Covid restrictions hit sentiment.

The BSE Sensex is trading up by 91 points. Meanwhile, the NSE Nifty is trading higher by 22 points.

Reliance and Asian Paints are among the top gainers today. HDFC, on the other hand, is among the top losers today.

The BSE Mid Cap index is up 0.7% while the BSE Small Cap is trading higher by 0.6%.

Sectoral indices are trading on a mixed note with stocks in the energy sector, the auto sector, and the realty sector witnessing most of the buying.

Metal and banking stocks, on the other hand, are trading in the red.

Shares of Apollo Tyres and CEAT hit their 52-week highs today.

The rupee is trading at 81.73 against the US$.

Crude oil prices fell more than US$1 early today as protests in top importer China over strict curbs fueled demand worries.

Meanwhile, investors also remained cautious ahead of an agreement on a Western price cap on Russian oil and an OPEC+ meeting.

Oil marketing companies (OMCs) rallied as a result of oil prices hitting their 10-month low.

Gold prices are trading down by 0.2% at Rs 52,425 per 10 grams.

Meanwhile, silver prices are trading up by 0.2% at Rs 61,415 per kg.
 

Specialty Chemical Companies in a Sweet Spot

In news from the chemical space, the upcoming quarter for specialty chemical companies may be filled with robust earnings expansion amid a broad-based addition to capacities in the industry that is set to benefit from a global supply-chain de-risking strategy.

This was done initially to make the most of China's plus one strategy.

Market experts said that specialty chemical companies have witnessed a smart recovery in manufacturing operations in the past one year, after the Covid-led disruptions.

Supply-chain disruptions and uncertainty in China have created a significant opportunity for domestic chemical companies. Outsourcing will strengthen further as not only the supply chain shifts away from China but also from Europe on account of higher costs.

An increase in raw material costs has affected sentiment for now as even the best chemical companies are down in the range of 30-40%.

The government has taken several initiatives such as Aatmanirbhar Bharat, production-linked incentives (PLI), national logistics policy, and Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) to boost domestic production.

Aarti, NOCIL, and Tata Chemicals among others are expected to benefit from the work-in-progress global supply-chain recast.

Tata Chemicals' share price has fallen in recent session otherwise it was trading near yearly high levels last month.

Medley-Cipla Deal Called Off

Moving on to news from the pharma space, Medley Pharmaceuticals has called off its sale after talks with Cipla failed on a valuation mismatch and differences over some agreement terms.

Cipla, the sole final contender for Mumbai-based Medley, submitted a bid of around Rs 40 bn. The promoters of Medley had expected Rs 50-55 bn.

JB Chemicals and Torrent Pharma were also in the race to buy Medley.

Note that this is the second pharma merger and acquisition (M&A) transaction that has been called off or postponed recently due to market volatility and valuation mismatch.

Aurobindo Pharma had also scrapped the demerger and sale of its injectables arm Eugia Pharma Specialities to Blackstone earlier this year.
 

Strong EV Sales

Moving on to news from the electric vehicle (EV) space, the festive season may have ended but festivities are continuing for EV makers with November sales likely to match the record set last month amid Navratri and Diwali seasons.

If October set a monthly record of 115,861 EV sales, the numbers this month have already crossed 99,000 units, as per data from the government website Vahan which tracks vehicle registrations.

This comes as backlog bookings continue to be retailed and awareness of EVs continues to grow among the strata of vehicle owners.

While the EV ecosystem is still developing in the country, adoption is driven by two- and three-wheelers as the masses increasingly use them for last-mile connectivity.

After a dip in 2021, EV sales jumped more than 200% in 2022, accounting for nearly 3% of the overall vehicle sales in India.

Electric two-wheeler sales have been going up in the last 8-12 months after the government revised upwards incentives under the Fame 2 scheme.

With so many factors acting in concert, it would be a mistake if investors don't start preparing for an electric car revolution.

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