Asian shares are trading mixed today as economic data showed US services sector unexpectedly softened, reinforcing expectations that the Federal Reserve may skip an interest rate hike when it meets next week.

The Nikkei and the Hang Seng index is trading higher by 0.5%. The Shanghai Composite is trading flat.

US stocks ended lower on Monday after a report showed growth fell short of economists' forecasts for businesses in the construction, accommodation and other U.S. services industries last month. It was still a fifth straight month of expansion, though.

The Dow Jones Industrial Average ended 0.5% lower, and the tech heavy Nasdaq Composite ended marginally lower.

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

Source: Equitymaster

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

At present, the BSE Sensex is trading lower by 45 points. Meanwhile, the NSE Nifty is trading down by 9 points.

Titan and Asian Paints are among the top gainers today.

Infosys and TCS on the other hand are among the top losers today.

Broader markets are trading on a positive note. The BSE Mid Cap index is trading marginally higher, and the BSE Small Cap index is trading higher by 0.3%.

Sectoral indices are trading on a mixed note with stocks in the realty sector and the auto sector witnessing most buying. While stocks in the IT sector and the metal sector are witnessing selling pressure.

Shares of Titan and Bharat Dynamics hit their 52-week high today.

The rupee is trading at Rs 82.58 against the US dollar.

In commodity markets, gold prices are trading flat at Rs 59,880 per 10 grams today.

Meanwhile, silver prices are trading 0.2% higher at Rs 72,047 per 1 kg.
 

Bank of Baroda to trim stake in NSE

The Bank of Baroda has invited bids from buyers for its stake in the National Stock Exchange through an exchange filing on Monday.

The state-run bank has proposed an auction to sell its stake in the exchange at a floor price of Rs 3,150 per share that values NSE at Rs 1.6 trillion (tn), way more than its rival BSE's valuation of Rs 77.9 billion (bn).

The bank has invited offers from eligible categories like insurance companies, corporates, mutual funds, high net worth individuals, foreign institutional investors and non-resident Indians to bid for 2.1 m shares or a 0.42% stake in the exchange for at least Rs 3,150 per share. This will take the deal's value to Rs 6.6 bn.

However, partnership firms are not eligible to bid. The last day to submit bids is 10 July, while pre-bid queries will be answered between 5 June and 15 June. The bid will finally be opened on 11 June.

The bidding comes at a time when NSE's big market debut is at the crossroads of a Supreme Court ruling.

Shares of Bank of Baroda (BoB) were on a roll in 2022. The bank's shares rose by 127% throughout the year on the back of an improvement in financials and prospects, making it one of the biggest gainers of 2022.

Going forward, the bank stands to benefit from the rise in credit demand in the county on the back of the government's thrust towards reviving capital spending in infrastructure.
 

Adani Group's loan repayment

The Adani Group on Monday repaid loans totaling US$ 2.6 bn that were taken by pledging shares in the conglomerate's listed firms and another US$ 700 million (m) in loans taken for the acquisition of Ambuja Cement.

The prepayment was done with an interest payment of US$ 203 million (m).

In the financial year 2023, promoters completed a secondary sale of shares to GQG Partners for Rs 155 bn in four key listed entities.

The cash balance at the listed portfolio is now over US$ 4.75 bn (Rs 40,351 crore).

Adani Ports and SEZ completed the buyback of US$ 130 m bonds, out of the US$ 650 m maturing in 2024.

The credit update added that the banking lines of the Adani Group continue to show confidence by disbursing new debt and rolling over existing lines of credit. Moreover, domestic and international rating agencies have reaffirmed their ratings in all the group companies.
 

MTNL operations to shut down

According to media reports, the government may shut down debt-laden Mahanagar Telephone Nigam (MTNL) and shift its staff and operations to Bharat Sanchar Nigam Ltd (BSNl).

The option of closure is under serious consideration since MTNL was continuing to make losses amid mounting debt, the officials cited above said on condition of anonymity.

As regards the matter of the merger of MTNL into BSNL, the same is under deliberations with the Department of Telecom. The spectrum for 4G services will be assigned in 2023-24.

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