Indian stock market may remain under pressure; Zee, Vedanta, IRCTC in focus

Asian shares and US stock futures slipped on Friday, as quarterly earnings from Amazon and Apple weighed on a recent strong trend and growth and inflation fears.

Back home, Invesco on Thursday approached a division bench of the Bombay High Court challenging the decision of a single-judge bench of the court earlier this week that ordered a US fund manager to delist Zee Entertainment Enterprises Ltd. was barred from convening a special shareholders meeting. Managing Director Puneet Goenka and also restructuring of the board.

InterGlobe Aviation Ltd, the operator of India’s top domestic airline IndiGo, fell for the seventh consecutive quarter as heavy losses as fuel cost and fixed expenses outweighed strong growth in revenue. Company’s consolidated loss widened ₹1,435.66 crore in the three months ended 30 September ₹1,194.83 crore a year ago.

Major companies include Adani Transmission, Vedanta, Shree Cement, Bharat Petroleum, Dr Reddy’s Laboratories, IRCTC, GAIL (India), JSW Energy, UPL, Cadila Healthcare, Bharat Electronics, Bandhan Bank, SAIL and Adani Power to release their September results today.

Investors, particularly in the bond and money markets, are concerned about the various reactions by central banks around the world to rising inflation. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3% in early trade and was on track for a weekly loss of 1.3%, narrowing three weeks of gains. Japan’s Nikkei reversed early losses in flat trading.

Asian shares fell 0.73% on Nasdaq futures after Apple Inc and Amazon Inc posted results that missed expectations. S&P 500 futures were down 0.4%. Chinese stocks were among the lowest losers with local blue chips trading flat, although the Hong Kong benchmark lost 0.83%, once again weighed down by mainland Chinese asset stocks.

However, shares of China Evergrande Group opened up 1.2% following news that the cash-strapped developer had paid for an offshore bond coupon before the end of a grace period on Friday, waiving its second dollar-denominated bond repayment obligation this month. completed. Overnight the S&P 500 and Nasdaq ended at record closing levels, while the Dow Jones Industrial Average closed just short of its high.

As inflation concerns grow, central banks’ rate policies remain in focus. Yields on the three-year bond rose 33 basis points to 1.08% this week alone, the biggest increase since 2009. A month ago they were trading at 0.30%. Eurozone bond yields jumped on Thursday after European Central Bank President Christine Lagarde disappointed investors. It is expected that she will allay their concerns on rising inflation and rate hike. It sent the euro higher, securing it at $1.1676 in Asian hours on Friday.

All eyes are now on the Federal Reserve, whose policy committee will meet next week.

The dollar was weak, largely with the dollar’s index against the euro, which measures the US currency against other majors, at 93.381, hit overnight from its lowest level of the month. The benchmark US 10-year yield was steady at 1.5677%. The gap between the 5-year and 30-year yields, which stood at 79.2 bps, narrowed overnight to 73.4 bps, the tightest since March 2020, on hopes of a rate hike by the Federal Reserve next year.

Oil was steady with Brent crude flat at $82.72 a barrel, though on track for its first weekly decline in eight weeks. Spot gold was also flat at $1,797 an ounce.

(Reuters contributed to the story)