Asian share markets dropped today after hawkish signals from central banks sparked a rout in European and US equities.

The Nikkei fell by 1.8% while the Hang Seng was up by 0.1%. The Shanghai Composite is trading lower by 0.3%.

US stock markets closed sharply lower on Thursday, with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.

The Dow Jones ended lower by 2.3% while the tech-heavy Nasdaq Composite ended lower by 3.3%.

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 238 points. Meanwhile, the NSE Nifty is trading down by 87 points.

L&T and Power Grid are among the top gainers today. M&M and Wipro are among the top losers today.

Broader markets are trading on a negative note. The BSE Mid Cap index is trading lower by 1.3% and the BSE Small Cap index is trading lower by 0.6%.

Sectoral indices are trading on a negative note with the exception of the FMCG sector.

Stocks in the capital goods sector, auto sector, and consumer durable sector witness selling.

Shares of L&T and UCO Bank hit their 52-week high today.

The rupee is trading at 82.8 against the US dollar.

In the commodity markets, gold prices trade higher by Rs 11 at Rs 54,118 per 10 grams.

Meanwhile, silver prices are trading lower by 03% at Rs 67,597 per 1 kg.

Speaking of stock markets, PSU banks have rallied big time in recent weeks. But do you know the next big sector that is ready to go up?

The recent gains in PSU bank stocks have been stellar. Retail traders have made a lot of money in the short term.
 

Why Gold NBFCs Are Under Pressure

It's a dichotomy that just can't be overlooked.

Gold non-banking financial companies (NBFCs) like Muthoot Finance and Manappuram Finance have witnessed sharp underperformance on Dalal Street at a time when the benchmark index Sensex is trading close to lifetime highs.

In contrast, PSU banks and private bank stocks are trading close to their respective 52-week highs.

The underperformance of gold NBFCs is in contrast to public sector banks (PSBs) and private sector banks. Banks have made rapid strides in loans against the gold loan segment in the September 2022 quarter.
 

Wipro Enters in a Partnership with Finastra

IT major Wipro announced a partnership with Finastra, a global provider of financial software applications and marketplaces, to drive digital transformation for corporate banks in the Middle East.

This multi-year engagement, aligned with the region's vision to rapidly digitize and bolster cross-border trade, will make Wipro the exclusive implementation and go-to-market partner to deploy Finastra's trade finance solutions in the region.

Together with Finastra's market-leading product suite, Wipro will help banks transform and digitize the entire trade finance process, thereby enabling automation, optimization, faster time-to-market, and reduced customer response times.
 

Another Big Investor Sells Nykaa Shares

Foreign investor Kravis Investment Partners offloaded Rs 629 crore (about Rs 6.2 billion) worth of shares in FSN E-Commerce Ventures, the Nykaa Fashion operator, via open market transactions on 15 December.

Kravis Investment Partners II LLC has sold 36.7 m shares in FSN E-Commerce Ventures, at an average price of Rs 171 apiece. The stock corrected 1% to close at Rs 170.80.

This news will be another addition to the bag of existing worries for Nykaa investors. The stock has fallen like nine pins in recent months. Even a generous bonus issue did not stop the slide.

In fact, the selling pressure had accelerated in the days following the bonus issue.

A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like, don't try to catch a falling knife, which can be translated to mean, wait for the price to bottom out before buying it.
 

Petronet LNG to Set up New Facility

Petronet LNG, India's largest liquefied natural gas importer, will set up a floating LNG receipt facility at Gopalpur port in Odisha at Rs 23.1 bn. The company has signed an agreement with Gopalpur Ports for the facility that will have a capacity of about 4 m tonnes per annum.

Last month, the company's board had accorded investment approval for setting up the floating storage and regasification unit (FSRU) based LNG terminal at Gopalpur.
 

Deepak Fertilisers to Demerge

Industrial chemicals and fertilizers manufacturer Deepak Fertilisers and Petrochemicals Corporation (DFPCL) on Thursday announced a corporate restructuring plan under which it will demerge its mining chemicals and fertilizers businesses.

The company said that the corporate restructuring plan would help unlock the growth potential of each of the businesses.

The board of Smartchem Technologies (STL), a wholly-owned subsidiary of DFPCL, in a meeting on Thursday, approved the plan.

It approved the demerger of the TAN business (mining chemicals) from STL to DMSPL, a wholly-owned subsidiary of DFPCL, and the amalgamation of Mahadhan Farm Technologies (MFTPL), a wholly-owned subsidiary of STL, with STL.

The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger DFPCL brand umbrella.

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