Asian share markets followed US equities lower after the Federal Reserve signaled interest rates will climb higher than anticipated next year.

The Nikkei fell by 0.3% while the Hang Seng was down by 1.1%. The Shanghai Composite is trading lower by 0.3%.

US stocks closed lower in volatile trading on Wednesday following a policy announcement by the Federal Reserve that raised interest rates by an expected 50 basis points, but its economic projections see higher rates for a longer period.

The Dow Jones ended lower by 0.4% while the tech-heavy Nasdaq Composite ended lower by 0.8%.

Here's a table showing the performance of US stocks yesterday:

Source: Equitymaster

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

Benchmark indices extended losses today tracking weak global cues.

At present, the BSE Sensex is trading lower by 334 points. Meanwhile, the NSE Nifty is trading down by 97 points.

NTPC and IndusInd Bank are among the top gainers today. Tech Mahindra and Infosys are among the top losers today.

Broader markets are trading on a mixed note. The BSE Mid Cap index is trading lower by 0.1% and the BSE Small Cap index is trading higher by 0.2%.

Sectoral indices are trading on a negative note with the exception of the finance sector, utilities sector, and realty sector.

Stocks in the metal sector, IT sector, and consumer durable sector witnessed selling.

Shares of Polycab India and Bluestar hit their 52-week high today.

The rupee is trading at 82.6 against the US dollar.

In the commodity markets, gold prices trade lower by Rs 362 at Rs 54,312 per 10 grams.

Meanwhile, silver prices are trading lower by 2.2% at Rs 67,803 per 1 kg.

Speaking of stock markets, we have been talking about the big India revival and how it's a once-in-a-generation wealth-building opportunity.

Keeping in mind the same, this company could be a 'special situation investing' candidate.

With cash and investments accounting for more than 60% of its market capitalization, Research Analyst Aditya Vora explains in the below video why this company is best suited to get re-rated.

Also speaking of stocks and investing, investors often get confused about one persistent question: small caps or midcaps, and which are better investments?

An effective tool to analyze the attractiveness of these indices is to look at the smallcap to Sensex ratio and the midcap to Sensex ratio.

We examine this ratio by comparing it to the index's historical values. The longer the history, the better it is. It captures the different cycles the broad markets have undergone.

The midcap to BSE Sensex ratio has historically traded at a 20-year average of 0.4x reaching a maximum of 0.52x.

The ratio is currently at 0.42x, indicating that there is room for expansion in the midcap category.

On the other hand, the Smallcap to BSE Sensex ratio has traded at a 20-year average of 0.44x with a top of 0.76x.

The ratio is currently at 0.48x, indicating that there is far more room to expand as compared to midcaps.

This makes the smallcap universe a clear winner where opportunity is considered. 
 

Tata Motors Signs Pact with Everest Fleet

Tata Motors on Wednesday said it has inked a pact with Everest Fleet Pvt Ltd to supply 5,000 units of XPRES-T EVs.

The company handed over 100 units to Mumbai-based Everest Fleet on Wednesday, as a part of the deal.

In July 2021, Tata Motors launched the 'XPRES' brand exclusively for fleet customers, and the XPRES-T EV is the first vehicle under this brand.

Speaking of Tata Motors, it has been in the limelight as of late after the group announced that Tata Motors may divest a stake from Tata Technologies.

Tata Group also announced its next big leap in the semiconductor industry. In a recent interview, N Chandrasekaran stated that Tata Group, under Tata Electronics (TEPL) will set up an Outsourced Semiconductor Assembly and Test (OSAT).

Also, this isn't the first move by the group in this industry. Earlier in June 2022, Tata group companies - Tata Motors and Tejas Networks entered a strategic partnership with Japanese semiconductor manufacturer Renesas Electronics Corporation.
 

Wipro Launches New Consulting Firm in the Middle East

The technology services and consulting company - Wipro, on 14 December 2022 announced the launch of a new Middle East financial services advisory capability.

Capco, a Wipro company, will offer strategic management and technology consulting capabilities to financial services firms in the Middle East to enable their transformation, digitization, and business consolidation initiatives.

The new consulting capability will be led by Naim Alame as its managing partner, in the Middle East. He joins Accenture Middle East and has extensive experience in financial services, delivering digital and core transformation programs across top-tier banks in this region.

Wipro is a leading technology service and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.
 

Government to Sell Stake in IRCTC

The central government will sell up to a 5% stake in the Indian Railway Catering and Tourism Corporation (IRCTC) through an offer for sale (OFS) on the exchanges on Thursday and Friday.

The floor price for the share sale is set at Rs 680 per share, which is 7.4% lower than the company's closing price of Rs 734 on Wednesday.

IRCTC is the tourism and catering arm of the Indian Railways. At present, the government owns a 67.4% stake in IRCTC.

The stake sale will mop up close to Rs 2,720 crore (about Rs 27.2 billion), offering the government some cushioning as it chases to meet its disinvestment target of Rs 650 bn for the current financial year.

A minimum of 25% of the shares in OFS will be reserved for mutual funds and insurance companies; the rest 10% will be set aside for retail investors.

The move is seen as a part of the Centre's plan to sell its stake in listed railway firms to raise money, particularly at a time when achieving the target looks thorny.

The OFS will open for non-retail investors on Thursday. Retail investors can bid for shares on Friday.

Axis Capital, Citigroup Global Markets, Goldman Sachs, and JM Financial are brokers for the OFS.

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