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Asian share markets are mixed today as a heavy police presence deterred Covid protests in China and traders weighed comments from Federal Reserve officials stressing the need for more interest rate hikes.

The Hang Seng rose over 4% while the Shanghai Composite is trading 2.2% higher.

In US stock markets, wall street indices ended sharply lower on Monday after protests in major Chinese cities against strict Covid-19 policies sparked concerns about economic growth.

The Dow Jones declined 1.5% while the Nasdaq lost 1.6%.

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

Source: Equitymaster

Back home, Indian share markets opened on a negative note tracking the trend on SGX Nifty and following a sharp fall in US stocks overnight.

However, losses were erased as the session progressed following sharp gains in Asian markets.

The BSE Sensex is trading up by 167 points. Meanwhile, the NSE Nifty is trading higher by 57 points.

HUL and Tata Steel are among the top gainers today. L&T, on the other hand, is among the top losers today.

The BSE Mid Cap index is down 0.1% while the BSE Small Cap is trading higher by 0.2%.

Sectoral indices are trading on a mixed note with stocks in the FMCG sector and healthcare sector witnessing most of the buying.

Capital goods and auto stocks, on the other hand, are trading in the red.

Among the best FMCG stocks, Dabur and Godrej Consumer are up over 1% each.

Shares of CCL Products and IDBI Bank hit their 52-week highs today.

The rupee is trading at 81.62 against the US$.

Crude oil prices continued a downtrend and dropped in early trade, weighed down by concerns about slowing fuel demand in top crude importer China.

Gold prices are trading up by 0.3% at Rs 52,305 per 10 grams.

Meanwhile, silver prices are trading up by 0.8% at Rs 61,370 per kg.

Speaking of stock markets, Aditya Vora talks about a smallcap jewelry stock and why it could be a better option than Titan, in his latest video.

A 30% fall from the peak offers a good opportunity in this niche diamond exporting company.
 

IDBI Stake Sale

In news from the banking sector, Sumitomo Mitsui Financial Group and one other global bank are among five potential investors that have sought information from the Centre about the sale of equity in IDBI Bank through a formal query process that closed on 10 November.

The other players that also sought information through the query process include non-bank finance companies (NBFC) and global investment firms.

IDBI Bank's sale process kicked off when a preliminary information memorandum was issued by the finance ministry on 7 October.

The government of India and Life Insurance Corporation (LIC) are jointly selling 60.72% equity in the bank.

The deadline for submission of expressions of interest (EoIs) is 16 December.

The government has clarified that norms applicable to public sector banks will not apply to IDBI Bank once the government and LIC divest stakes. It has also stated that IDBI Bank will operate as a private sector bank even if it were to be taken over by a foreign entity.

The Centre also disclosed that it has applied for reclassification of its shareholding as a public shareholder. At present, the government and LIC hold more than 94% stake in the bank. Both are classified as promoter shareholders.

It remains to be seen how this stake sale pans out.
 

Phone Exports Surge

Moving on to news from the manufacturing sector, mobile phone exports have raced past the US$5 billion (bn) mark within seven months (April-October) of the current financial year.

This compared to the US$2.2 bn that India clocked in the same period last year.

The above development comes as the likes of Apple and Samsung stepped up outward shipments.

Government officials said that at the current pace, exports from India will surpass the entire FY22 figure by early December itself, and end FY23 in the US$8.5-9 bn range.

Backed by the production-linked incentive (PLI) scheme, Apple and Samsung contribute over 90% of India's mobile phone exports. Officials say iPhone 12, 13, and 14 are exported from India, along with Samsung Galaxy A and M series.

Indian companies including Lava, Dixon Technologies, and Micromax are also participants in the PLI scheme.

Dixon, being a domestic manufacturing firm, had to invest Rs 500 million to be eligible for the smartphone PLI scheme, and manufacture phones worth Rs 5 bn in the first year.

Dixon is one of the top companies which benefits from China plus one strategy.

In the last three years, the company's revenue has grown at a compound annual growth rate (CAGR) of 34.4%, driven by high demand for televisions, smartphones, and laptops. Net profit also grew by 16.5% during the same period.

Going forward, the company's established position in the market, growing demand for electronics, and expansion plans is expected to drive its revenue, especially from the export market.

The stock has given a phenomenal CAGR of 51% since its listing in 2017. This year, however, the stock has underperformed the market and is down around 18% to date.
 

Signature Global IPO

Moving on to the latest developments from the IPO space, realty firm Signature Global (India) has received a nod from the capital markets regulator for its initial public offer (IPO) to raise up to Rs 10 bn to clear debt and land acquisition.

In July this year, Signature Global, which focuses on affordable and mid-housing segments, filed the Draft Red Herring Prospectus (DRHP) to launch its maiden public issue.

As per the DRHP, the IPO will comprise a fresh issue of equity shares worth up to Rs 7.5 bn and an Offer for Sale (OFS) of up to Rs 2.5 bn.

Promoter Sarvpriya Securities and investor International Finance Corporation will sell equity shares worth up to Rs 1.3 bn each.

Signature Global posted a net loss of Rs 1.2 bn during the last financial year. Its net loss stood at Rs 0.9 bn in the preceding year.

Recently, the primary markets saw an IPO by real estate company Keystone Realtors.

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