Markets likely to stay steady; Infosys, Zee, power stocks in focus



Markets are likely to stay firm on Thursday while trends in SGX Nifty show a positive opening of Indian benchmark indices. On Wednesday, the 50-share index ended at 18,161.75, up 169.80 points or 0.94%. The Sensex closed at 60,737.05, up 452.74 points or 0.75%

Most Asian stocks rose Thursday as traders assessed the durability of the economic recovery to inflationary pressures and a looming reduction in the Federal Reserve’s pandemic-era stimulus.

Equities advanced in Japan and South Korea and fluctuated in China, where data showed the fastest climb in producer prices since 1995. US futures pushed higher after Wall Street snapped a three-day losing streak, with the tech-heavy Nasdaq 100 outperforming the S&P 500.

Among major companies, HCL Technologies, Cyient, Century Textiles & Industries, , Indiabulls Real Estate and Inox Wind Energy will release their September quarter results today.

Infosys raised its forecast for annual revenue growth to 16.5 to 17.5% in the fiscal year to March 2022, from 14 to 16% growth predicted in July.

Reliance Industries Ltd on Wednesday said differences between Zee Entertainment Enterprises Ltd’s managing director Punit Goenka and Invesco, the company’s single-largest shareholder, over how the Goenka family would raise its stake in the broadcaster led to a collapse in merger talks with RIL’s media properties.

The power ministry cautioned states as early as 18 August about depleted coal stocks failing to match the sharp increase in electricity demand. The warning bells were twinned with a request to clear their pending fuel and transportation dues, according to a Mint exclusive.

Longer term treasuries pared a rally, while a key part of the Treasury yield curve has flattened to around a one-year low. US inflation held above 5% and Fed minutes signalled a tapering of bond purchases from mid-November or mid-December. Meanwhile, a 30-year Treasury auction drew strong demand.

Crude oil stabilized above $80 a barrel and gold was near the highest in nearly a month. Singapore’s dollar rose after the central bank unexpectedly tightened monetary policy settings.

Investors continue to evaluate the resilience of the economic rebound from the pandemic to supply chain disruptions, a jump in energy prices and the prospect of reduced central bank support.

The Joe Biden administration in the US is trying to relieve supply-chain bottlenecks ahead of the Christmas shopping season, but officials acknowledge their options are limited. Former Treasury Secretary Lawrence Summers castigated US monetary policy makers for paying too much attention to social issues and not enough to the biggest risk to inflation since the 1970s.

(Bloomberg contributed to the story)

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