Mumbai: Market Volatility is likely to continue on Monday as well, while trends in SGX Nifty indicate a positive opening for the Indian benchmark indices. On Friday, the BSE Sensex closed above 60,000 for the first time. The 30-share index closed at 60,048.47, up 163.11 points, or 0.27%. Nifty closed at 17,853.20, up 30.25 points or 0.17%.
Asian stocks opened on a cautious note on Monday as oil prices plunged to a three-year high, raising fears of inflation and a recent bullish stance by some major central banks.
Oil pushed back its July peaks as global production disruptions forced energy companies to pull large amounts of crude out of inventory, while natural gas shortages in Europe pushed up costs across the continent.
Brent rose another 62 cents to $78.71 a barrel on Monday, while US crude rose 71 cents to $74.69. Such growth could fuel speculation that global inflation will prove to be longer-lasting than previously expected and the end of super-cheap money bullish in favor of inflationary trades in bank and energy stocks, driving down bond prices. Will bring
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat after three consecutive weeks of losses. Japan’s Nikkei rose by 0.4% on hopes of further fiscal stimulus once a new prime minister was elected.
Invesco Developing Markets Fund and OFI Global China Fund LLC, the largest shareholder of Zee Entertainment Enterprises Ltd, renewed their call for an Extraordinary General Meeting (EGM) to remove Zee Chief Executive and Managing Director Puneet Goenka from the board.
On 13 September, two institutional investors, with 17.88% stake in Zee.
The London Court of International Arbitration has given the final arbitration award in a matter relating to a dispute between IndiGo promoters, Rahul Bhatia and Rakesh Gangwal, and no direction has been issued to InterGlobe Aviation. InterGlobe Aviation is the parent of the country’s largest airline IndiGo. In a regulatory filing, InterGlobe Aviation said it is receiving the final arbitral award on September 23, issued in the arbitration proceedings, in which the company was also named as a respondent.
According to Mint Exclusive, India’s market regulator may allow private equity funds to be owned by local asset management companies (AMCs) amid rising popularity of mutual funds and a surge in stock markets.
Meanwhile, the fate of China Evergrande Group remained a major unknown, as the asset giant did not pay on offshore bonds last week, with further payments this week.
Stocks in Hong Kong have felt the most pressure, although the government in Beijing has added more liquidity to the financial system.
Eyes will also be on US fiscal policy with the House of Representatives due to vote on a $1 trillion infrastructure bill this week, while a September 30 deadline on funding to federal agencies could force a second partial government shutdown in three years. .
The week is filled with speeches from the US Federal Reserve led by Chair Jerome Powell on Tuesday and Wednesday, with more than a dozen other events on the calendar.
The latest sharp turnaround by the US central bank and several others globally saw bond yields close last week before ending bullish.
The 10-year Treasury is at its highest level since early July at 1.46%, amid fears that the relegation trade may be back for the end of super-cheap money in the world. An increase in yields strengthened the US dollar, particularly against emerging market currencies that compete with treasuries for global funds.
Against a basket of currencies, the dollar was stable at 93.292 and was above its 10-month high of 93.734 in August. A stronger dollar weighed on gold, which was trading higher at $1,748 an ounce and above a six-week low of $1,738.
(Reuters contributed to the story)
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