Asian stocks are trading mixed today as investors looked ahead to a key reading on US inflation and the start of another corporate earnings season.

The Nikkei is trading 0.8% lower, and the Hang Seng index is trading higher 0.8%. While Shanghai composite was up 0.2%

Wall Street's main indices ended lower on Friday in a seesaw session, as investors digested a US jobs report that showed weaker-than-expected growth and awaited more economic data and corporate earnings in the weeks ahead.

The Dow Jones Industrial Average ended 0.6% lower, and the tech-heavy Nasdaq Composite ended down 0.4%.

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

Source: Equitymaster

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

At present, the BSE Sensex is trading higher by 196 points. Meanwhile, the NSE Nifty is trading up by 79 points.

Reliance Industries and Tata Motors are among the top gainers today.

Bajaj Finance and HCL Technologies on the other hand are among the top losers today.

Broader markets are trading on a mixed note. The BSE Mid Cap index and is down by 0.2% the BSE Small Cap index is trading marginally higher.

Sectoral indices are trading on a mixed note. Stocks in the IT sector and consumer durables sector are witnessing selling pressure.

On the other hand, stocks in the metal sector, auto sector, and energy sector are witnessing the most buying.

Shares of SKF India and Bajaj Auto 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 lower by Rs 137 at Rs 58,645 per 10 grams today.

Meanwhile, silver prices are trading lower by 0.3% at Rs 71,114 per 1 kg.
 

HDFC Bank to divest stake in NSDL

HDFC Bank announced its plan to participate in the initial public offering (IPO) of the National Securities Depository (NSDL). The bank will divest a 2% stake in NSDL. In other news, HDFC Bank also said it will announce its Q1 results for FY24 on 12 July.

Also, it is in addition to a 1% stake sale in NSDL through definitive agreements on 2 December last year.

In the first tranche of the stake sale which was 1% at Rs 2,750 per equity share in NSDL, HDFC Bank bagged a cash consideration of Rs 1.1 billion (bn). After the first tranche stake sale, HDFC Bank held an 8.95% stake in NSDL.

However, the second tranche which is a 2% stake is subject to terms of the proposed IPO and hence the sale price per share and cash consideration will be revealed in due course.

Hence, if HDFC Bank successfully offloads a 2% stake in NSDL through the IPO, then the lender's shareholding will drop to 6.95%.

NSDL is a depository set up to carry on, regulate and manage the business of providing depository and clearing and settlement services in respect of securities and instruments of all kinds.

NSDL filed for a draft red herring prospectus for the IPO before market watchdog Sebi on 7 July 2023. The overall IPO comprises a fresh issue of equity shares having a face value of Rs 2 each.

Apart from HDFC Bank, other lenders like IDBI Bank, NSE, Union Bank of India, SBI, and Shares by Administrator of the Specified Undertaking of the Unit Trust of India --- are collectively the selling shareholders in the offer for sale.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through Internet and mobile. The number has gone up to 92% in 2019.

It is a great example of a company that has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long run.
 

Bajaj Auto to incorporate a new subsidiary

Two- and three-wheeler maker Bajaj Auto is setting up a wholly-owned subsidiary, Bajaj Auto Consumer Finance.

The company has applied to the Reserve Bank of India for a non-banking financial company (NBFC) license.

This follows the automaker's erstwhile captive finance company Bajaj Finance diversifying into financing two-wheeler purchases of non-Bajaj Auto brands.

In June 2022, Bajaj Finance began offering loans to all two-wheeler makers, in addition to Bajaj Auto and is now focusing on growing its non-Bajaj Auto automobile financing activity.

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