Markets likely to be under pressure; Zomato, OIL, ITC in focus



Markets are likely to be under pressure on Wednesday while trends in SGX Nifty indicate a weak opening of Indian benchmark indices. On Tuesday, the BSE Sensex ended at 60,433.45, down 112.16 points or 0.19% and the Nifty was at 18,044.25, down 24.30 points or 0.13%.

Most Asian stocks slipped Wednesday as the latest Chinese data highlighted the inflationary pressures building up in the global economy. Treasury yields climbed ahead of a report on US consumer prices.

Shares fluctuated in Japan and dipped in Hong Kong and China, where factory-gate prices grew at the fastest pace in 26 years and consumer-price inflation topped estimates.

Among key companies, Zomato, Bank of Baroda and Oil India will release their September quarter results today.

ITC Hotels on Tuesday announced the launch of ‘Mementos’ with signing up the first property Ekaaya in Udaipur under the luxury brand. With its “asset right” strategy, the launch of the niche brand will help the group expand its footprint across the country through management contracts, a company official said.

Shares of e-commerce beauty giant Nykaa’s parent company, FSN E-Commerce Ventures Limited, will make stock markets debut on Wednesday. The 5352 crore was subscribed over 82 times in the price band 1085 to 1125 a piece.

Longer maturity Treasuries pared a climb, which earlier saw the 30-year yield reach the lowest since July. Bonds were supported by an unwinding of bearish bets and speculation about a possible dovish shift in the leadership of the Federal Reserve. The dollar ticked up. Persistent price pressures that accelerate monetary-policy tightening are among the key risks for global stocks, which remain near record levels.

US producer-price inflation is running at an annual pace close to 9%, and traders are awaiting Wednesday’s consumer-price report. Meanwhile, China Evergrande Group is facing its biggest payment test since signs of a liquidity crisis emerged at the firm five months ago. Investors are waiting to see if the embattled developer makes coupon payments totaling $148.1 million for three dollar bonds be before the end of 30-day grace periods on Wednesday.

Oil extended an advance toward $85 a barrel on speculation that the Biden administration may pull the plug on any plans to release crude from the nation’s emergency reserves after a US energy report showed supplies rising next year.

(Bloomberg contributed to the story)

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