Asian share markets had a weak start today after a rout in regional banks rattled Wall Street, with brewing anxiety about the next financial shoe to drop making traders increase their bets on Federal Reserve rate cuts.

The Nikkei is trading up marginally and the Hang Seng index is trading higher by 0.6%. The Shanghai Composite is trading lower by 0.7%.

Wall Street indices ended lower on Thursday after PacWest's move to explore strategic options deepened fears about the health of US lenders and hit shares of regional banks as well as JPMorgan Chase, Wells Fargo & Co, and other major financial players.

The Dow Jones Industrial Average fell 0.9% and the tech-heavy Nasdaq Composite ended 0.4% lower.

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

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 197 points. Meanwhile, the NSE Nifty is trading down by 59 points.

Axis Bank and Titan are among the top gainers today.

HDFC Twins and NTPC on the other hand are among the top losers today.

Broader markets are trading on a positive note. Both the BSE Mid Cap and the BSE Small Cap index are trading higher by 0.2%.

Sectoral indices are trading on a mixed note. Stocks in the consumer durables sector and capital goods sector are witnessing buying.

On the other hand, stocks in the metal sector and finance sector witnessed selling.

Shares of MRF and Oracle Financial hit their 52-week high today.

The rupee is trading at Rs 81.66 against the US dollar.

In commodity markets, gold prices are trading higher by Rs 82 of Rs 61,575 per 10 grams today.

Meanwhile, silver prices hit their lifetime high of Rs 78,292 per 1 kg today.

Now track the biggest movers of the stock market using the stocks to watch today section. This should help you keep updated with the latest developments...

Speaking of stock markets, have valuations in rail stocks run ahead of the fundamentals?

The Sensex has returned a little under 5% over the last year, not a bull market by any stretch of the imagination.

However, what about returns like 220%, 253%, 106%, and even 57% over the last year? Can you call this a bull market? We do think so.

These are the returns earned by Titagarh Wagons, RVNL, IRCON, and RITES respectively in the last year. And if their magnitude is anything to go by, there is definitely a bull market underway here.
 

HDFC Bank to open more branches

Reportedly, HDFC Bank is likely to open more than 675 branches in semi-urban and rural geographies across the country.

The action is a part of the bank's new program targeting customers in semi-urban and rural areas. It aims to help India's largest private lender to meet some of its priority sector lending (PSL) targets.

PSL requirements, which include lending to weaker segments of the economy, are linked to an organization's loan book.

The move would take the total number of branches in these locations to around 5,000 in this financial year.

The banking company had 7,821 branches and 19,727 automated teller machines across 3,811 cities and towns in India as on 31 March, as per data released on the bank's website. Of this, around 52% of the bank's branches are in the semi-urban and rural areas.

Going forward, HDFC Bank aims to double business in semi-urban and rural areas - both by assets and liabilities - in the next two-to-three years.

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.
 

Coal India's big capex plans

On Thursday this week, various media houses reported that the central coalfields chairman and managing director PM Prasad announced that Coal India will invest Rs 910 billion (bn) in various projects, including diversification and mine development by 2025-26.

The Public Enterprises Selection Board (PSEB) yesterday recommended Prasad as the next Chairman and Managing Director of Coal India. He is expected to take charge of India's largest coal miner accounting for almost 80% of the mined commodity from 1 July 2023.

Prasad said Coal India will be spending nearly Rs 360 bn on gasification projects while another Rs 460 bn will be invested in mining developers cum operators (MDOs) and other contracts.

The remaining Rs 90 bn will be spent on various other projects.

Prasad said the government has decided to promote coal gasification in a big way that can yield multiple energy, chemical, and petrochemical products, most of which are being imported presently.

Cola India too has already done three tenders for coal gasification projects and has signed pacts with BHEL, GAIL, and IOCL to set up four coal gasification projects and one lignite gasification project and to promote indigenous gasification technology.

India's largest coal miner has already identified 15 greenfield projects having a total project-rated capacity (PRC) of 168.5 m tonnes per annum for implementation through MDO mode.

Out of these 15 projects, letters of the award have been given to nine projects, having a production capacity of around 127 MT, to be implemented through MDOs. The remaining six projects are at different stages of implementation.

More By This Author: