Asian stocks started on a sluggish note on Thursday amid a fall in the US stocks, weak China data, and a strong rise in global bond yields.

The Nikkei index was trading 0.3% higher, while Hang Seng was trading 0.3% lower. Meanwhile, the Shanghai index tumbled 0.9%.

US stocks finished lower on Wednesday after upbeat December US retail sales data eroded expectations the Federal Reserve will kick off its rate-cut campaign as early as March.

Here's a table showing how US stocks performed on Wednesday:

Data Source: Equitymaster

At present, the BSE Sensex is down 566 points and NSE Nifty is trading 187 points lower.

Tata Motors, Adani Ports, and Axis Bank are among the top gainers today.

Asian Paints, HDFC Bank, and Power Grid Corporation of India on the other hand are among the top losers today.

Broader markets are trading on mixed. The BSE Mid Cap is trading 0.4% lower and the BSE Small Cap index is trading 0.3% higher.

Sectoral indices are trading on a positive note, with socks in the capital goods sector and the auto sector witnessing the most buying. Meanwhile, stocks in the power sector, metal sector, and realty sector witnessed selling pressure.

The rupee is trading at Rs 83.2 against the US dollar.

In commodity markets, gold prices are trading 0.1% higher at Rs 61,560 per 10 grams today.

Meanwhile, silver prices are trading marginally higher at Rs 71,519 per 1 kg.
 

Government To Divest Stake in NHPC

The government has decided to sell up to a 3.5% stake in the PSU in an Offer for Sale at a floor price of Rs 66 a share - a discount of over 9% to yesterday's closing price.

The stock of the state-run hydropower producer rose 1.2% yesterday, amid a rise in other PSU stocks, and ended at Rs 73.25.

The company said that the Offer for Sale (OFS) for NHPC will open on 18 January for non-retail investors. Retail investors will be able to bid on Friday.

As per the OFS, the government will sell over 250 m equity shares in NHPC (with a green shoe option to sell 100 m more) at a floor price of Rs 66 a share. The reports estimate that the OFS could fetch about Rs 23 billion (bn) to the exchequer.

In Q2FY24, the state-owned- NHPC reported a consolidated profit of Rs 15.5 bn for the quarter ending September 2023, rising 0.7% year-on-year over the previous fiscal.

Revenue from operations also grew by 11.6% YoY to Rs 29.3 bn during the reporting quarter. NHPC is yet to announce its Q3 earnings.
 

Cochin Shipyard New Dock Launch

The company has opened a new dry dock and an international ship repair facility (ISRF) in Kochi. The new dry dock, costing Rs 17.9 bn, is set up at the existing premises of Cochin Shipyard in Kochi.

The ISRF project, costing Rs 970 crore, is set up on 42 acres of leased premises of the Cochin Port Authority at Willingdon Island, Kochi.

This is part of the Government's plans to strategically bolster India's maritime capabilities, encompassing ports, shipping, and waterways.

Shares of Cochin Shipyard witnessed a steady decline following a stock split which saw the counter getting subdivided into two shares on 10 January 2024 Wednesday.

The company had announced a sub-division of its equity share from a face value of Rs 10 each to a face value of Rs 5 each.

The company informed the exchanges that 10 January had been decided as the date of record for determining the eligibility of shareholders for the sub-division/split of existing equity shares.

Since Monday, Cochin Shipyard has rallied over 16%.

Shares of this PSU defense stock have given multi-bagger returns of 247% over the past 12 months, which is a significant outperformance over the returns given by Nifty during this period.

IIFL Finance Q3 Results

Non-bank lender IIFL Finance Wednesday reported a 29% growth in net profit to Rs 5.4 bn for the December quarter on higher loan sales and resultant interest income, cushioning the impact of higher regulatory charges.

Overall loan growth jumped 34% to Rs 774.4 bn, led by its key products like gold and home loans, which grew 35% and 25% to Rs 246.9 bn and Rs 255.2 bn, respectively.

Its total income grew 28% to Rs 16.9 bn.

The asset quality improved overall, with the gross non-performing assets ratio declining to 1.7 in the reporting period from 2.1% and the net non-performing assets ratio, declining to 0.9 from 1.1.

The assigned loan book is currently at Rs 186.5 bn. Besides, there are securitized assets of Rs 3.4 bn, and the co-lending book is at Rs 115.9 bn.

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