Asian share markets reversed course and are trading on a negative note. Earlier in the day, Asian stocks gained with investors encouraged to buy after rallies on Wall Street as the US midterm elections dominate attention.

The Nikkei fell 0.5% while the Shanghai Composite gained 0.1%. The Hang Seng which was up 0.4%, is down 1.6% at present.

In US stock markets, Wall Street indices gyrated to a higher close on Tuesday, as Americans went to the polls and market participants bided their time waiting to see whether Capitol Hill is in for a power shift.

The Dow Jones rallied 1% while the Nasdaq advanced half a percent.

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

Market participants are tracking shares of Tata Motors, Pidilite Industries, and Godrej Properties as these companies will announce their Q2 results later today.

The BSE Sensex is trading up by 119 points. Meanwhile, the NSE Nifty is trading higher by 36 points.

IndusInd Bank and HCL Tech are among the top gainers today. Tech Mahindra, on the other hand, is among the top losers today.

The BSE Mid Cap index and the BSE Small Cap are trading higher by 0.2%.

Sectoral indices are trading on a mixed note with stocks in the power sector, FMCG sector, and banking sector witnessing most of the buying.

Metal stocks, on the other hand, are trading in the red.

Shares of Solar Industries and Adani Total Gas hit their 52-week highs today.

The rupee is trading at 81.55 against the US$.

Crude oil prices are unchanged today after sliding 3% in the previous session on worries about demand stalling on potential new lockdowns in top oil importer China as Covid-19 cases rebound.

Gold prices are trading down by 0.2% at Rs 51,545 per 10 grams.

Meanwhile, silver prices are trading down by 0.4% at Rs 61,737 per kg.

Speaking of stock markets, according to chartist Brijesh Bhatia, the Bank Nifty index will break into a gallop above the 42,000 mark.

Meanwhile, the Nifty 50 has surpassed the previous hurdle of 18,100 and heading to break another at 18,350. The momentum may accelerate above 18,350 to inch at a new all-time high.

Nifty and Bank Nifty Trading Charts

(Click on image to enlarge)

Traders need to tighten their seat belts as we may witness the fast and furious rally above the breakout levels.

Asian Paints share price under pressure amid margin concerns.

In news from the paints sector, the performance of paint stocks in 2022 has remained subdued.

For the past 2-3 quarters now, paint companies have been battling cost inflation pressures. They have taken an aggressive approach by going on a price hiking spree to protect margins.

Meanwhile, rising crude oil prices and Grasim's aggressive foray into the space have also added to the pressure.

Among the big companies, Kansai Nerolac Paints, Berger Paints, and Asian Paints have seen a substantial fall in 2022.

Asian Paints in particular has seen a downtrend post declaring its Q2 results.

On Monday this week, Asian Paints slipped 2.4% to close at Rs 3,105 against its previous close of Rs 3,181.
 

MRF quarterly results

Tire manufacturer Madras Rubber Factory (MRF) missed second-quarter profit estimates on Tuesday, as soaring input costs and supply chain issues weighed, offsetting a rise in revenue.

The company's standalone net profit from continuing operations fell over 32% to Rs 1.2 bn for the three months ended September 2022 as compared to Rs 1.8 bn a year earlier. Meanwhile, MRF's revenue from operations rose 18.4% to Rs 57.2 bn as compared to Rs 48.3 bn year-on-year (YoY).

Along with announcing its Q2 earnings, MRF said its board also approved and declared an interim dividend along with fixing a record date for the same.

The company has fixed Friday, 18 November 2022, as the record date for the purpose of payment of the Interim Dividend. The interim dividend declared will be paid on or after 2 December 2022.

The tire manufacturing industry has been grappling with high input costs as soaring global inflation hiked prices of raw materials such as rubber.

Aside from financials, the company's board has also approved enhancement in the issue of Non-Convertible Debentures through private placement from Rs 1 bn earlier to Rs 1.5 bn.

To know more, check out MRF's financial fact sheet and its latest quarterly results.
 

Another big IPO to hit the market

From the initial public offer (IPO) space, SBFC Finance has filed its draft prospectus with the market regulator to raise funds to the tune of Rs 16 bn through an IPO. The public offer is a mix of fresh issues and offers for sale (OFS).

The company plans to utilize a part of the proceeds for meeting future Tier-1 capital requirements. After the IPO, SBFC's equity shares will be listed on the stock exchanges BSE and NSE.

According to the draft prospectus, the Rs 16 bn IPO includes a fresh issue of Rs 7.5 bn and OFS of Rs 8.5 bn.

Under the OFS, promoters such as Arpwood Partners Investment Advisors will offload a portion of its stake aggregating Rs 4 bn, while Arpwood Capital will divest stakes amounting to Rs 977 m, Eight45 Services to sell shares around Rs 790.1 m, and SBFC Holdings will divest stakes around Rs 2.8 bn.

The equity shares offered under the IPO will have a face value of Rs 10 each.

Of the total IPO, 50% of the issue size will be reserved for qualified institutional buyers (QIBs), while 15% of the size will be allocated to non-institutional investors (NII), and the remaining 35% will be offered to retail individual investors (RII).

SBFC plans to utilize the proceeds from the fresh issue under the IPO towards augmenting its capital base to meet future capital requirements arising out of the growth of its business and assets. Also, the company expects to receive the benefits of listing of equity shares on exchanges.

Healthy momentum in the secondary market, ample liquidity in the system, and greater participation of retail investors were some of the factors keeping the IPO street abuzz in 2021.

It appears the phase is back and the market has already started to rise. As many as four new companies are coming out with their IPOs this week. This is on the back of two issues that were already underway.

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