Market likely to continue strong; Vodafone Idea, Apollo Tires in focus

Global stocks were stable on Tuesday as traders weighed inflation risks and oversaw the first face-to-face virtual summit between US President Joe Biden and Chinese leader Xi Jinping. Treasury yields and the dollar declined.

Shares rose marginally in Japan and were volatile in Hong Kong and China. US and European equity futures rose after the S&P 500 and Nasdaq 100 ended flat. Units of troubled Chinese developer Casa Group Holdings Ltd posted mixed performance on the resumption of business in Hong Kong. At least some of Cassa Group’s creditors haven’t received the bond interest that was due last week.

Back home, debt-ridden telecom operator Vodafone Idea is evaluating the option of converting interest arrears arising out of deferment of statutory payments into equity, a senior company official said on Monday. Vodafone Idea Limited (VIL) Chief Financial Officer Akshay Mundra said during the company’s earnings call that the company is also in talks with banks and investors to raise funds and a part of the proceeds will come from loans maturing in this financial year. likely to be used to meet related obligations. ,

Apollo Tires is increasing the prices in the domestic market by 3-5% in the third quarter of the current financial year to offset the impact of rising commodity prices, which, if remain high, will continue in the fourth quarter as well. may be forced to take a similar increase. quarter according to the company’s top executives. Apollo Tires said that till September, the company had increased tire prices by an average of about 9%.

Real estate firm Macrotech Developers Ltd, formerly known as Lodha, on Monday launched a share sale 3,000 crore- 4,000 crore from institutional investors.

The 10-year US Treasury yield was around 1.60%. Bonds retreated overnight on speculation the Federal Reserve may have to intensify tougher policy to fight price pressure. In the case of an earlier interest rate liftoff, stronger-than-expected New York manufacturing data added.

The US and China are aiming to stabilize their ties but are downplaying hopes of a major breakthrough. Signs of improvement in bilateral ties could help sentiment, but the impact could be short-lived given the widespread concerns over inflation and the outcome of Xi’s “shared prosperity” campaign to tackle inequality.

Elsewhere, oil rose as investors waited to see whether the Biden administration would tap crude oil reserves.

(Bloomberg contributed to the story)