Indian stock market may remain under pressure; Tata Steel, Zomato, Zee in Focus

On Wednesday, the BSE Sensex was down 80.63 points or 0.13% at 60,352.82 and the Nifty was down 27.05 points or 0.15% at 18,017.20.

Inflation fears weighed on Asian stocks and the dollar rallied on Thursday, as overnight data showed US consumer prices rose last month at the fastest pace since 1990, prompting the Federal Reserve’s policy The case for speeding up has been encouraged.

Back home, Tata Steel, Godrej Consumer Products, Piramal Enterprises, HAL, PFC, Zee Entertainment are among the major companies that are set to release their September quarter results today.

Zomato Ltd plans to invest $1 billion in startups over the next two years, founder and chief executive Deepinder Goyal said on Wednesday, even as the food delivery company’s losses on high customer acquisition costs increase. Gaya.

The Insolvency and Bankruptcy Code (IBC) provisions are “fully applicable” to state-run power distribution companies, and a Corporate Insolvency Resolution Process (CIRP) can be initiated against them, the power ministry said, potentially to creditors. Allows the discom to tighten the noose on the debtor.

Meanwhile, the nominal US Treasury yield rose higher, jumping the most since February on the benchmark 10-year note, while real yields, which take inflation into account, fell to a record low.

Gold hit a five-month high as investors sought a hedge against inflation and bitcoin broke records.

Oil prices bounced back sharply from nearly seven-year highs after US President Joe Biden said his administration was looking for ways to reduce energy costs.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.85%, down 1.19% from Australia’s benchmark.

Japan’s Nikkei edged out the trend with a gain of 0.24%, supported by the yen’s weakness against a resurgent dollar and US stock futures ticked up slightly.

However overnight the S&P 500 fell 0.82%, its worst day in more than a month. The index marked its first back-to-back decline in over a month, after the index closed at a record peak to start the week.

The dollar index, which gauges the currency against six major peers including the yen and the euro, hit a high of 94.905 on Wednesday, a level not seen since July last year. The greenback rose 0.13% to 114.04 yen, up from a low of 112.73 at the start of the week.

The US consumer price index rose 6.2% year-on-year, with a broad-based rise in gasoline that indicated inflation could remain uncomfortably high in 2022 amid global supply chains. read more

Inflationary pressure in the labor market is also mounting, with other data on Wednesday showing that the number of Americans filing claims for unemployment benefits fell to a 20-month low.

With both the White House and the US Fed Reserve maintaining that prices will fall once supply bottlenecks ease, the central bank reiterated only last week that high inflation is “expected to be temporary” as policymakers urged patience.

The money market now makes the first Fed interest rate hike until July.

The benchmark 10-year Treasury yield rose the most in seven weeks to 1.592 per cent on Wednesday. Treasury markets globally remain closed on Thursday due to a US holiday.

Meanwhile, yields on 10-year Treasury Inflation-Protected Securities (TIPS) fell sharply as low as an unprecedented -1.243% before drifting higher during the session.

(Reuters contributed to the story)