The market may continue to rally; Zee, Telecom shares in focus

Moody’s Investors Service downgraded India’s sovereign credit rating outlook to stable from negative, on mitigating risks posed by the financial sector to the overall economy. However, the country’s credit rating was unchanged at Baa3, the lowest investment grade.

Essel Group founder and chairman Subhash Chandra on Tuesday questioned US investor Invesco’s motive behind seeking a change in the board of Zee Entertainment Enterprises Ltd. Reveal the rationale behind your demand to reconstitute the company’s board, including the removal of your son and managing director Puneet Goenka.

Government may drop its demand for spectrum fee of approx. ₹40,000 crore from telecom operators to support struggling companies. The latest plan will provide further relief to Vodafone Idea Ltd and Bharti Airtel Ltd, given the government’s September 15 decision to add a four-year moratorium on dues and an option to convert the dues. Government in equity. The government on Monday filed an affidavit in the apex court stating that the decision to withdraw the batch of appeals against telcos over spectrum charges is being examined by the competent authorities.

Indian pharmaceutical company Zydus Cadila has received the approval of the Indian drug regulator for the Phase III trial of its two-dose Covid-19 vaccine ZyCoV-D. The company has received permission to conduct “Phase III trials for a two-dose COVID vaccine,” Cadila Healthcare said in a regulatory filing.

The government wants Coal India Ltd to ramp up production to curb imports, amid a global fuel shortage, which has added urgency to the efforts.

Asian stocks rose after US stocks rose on Wednesday as traders weighed the resilience of the economic recovery to increased inflation from rising energy costs. Treasury yields advanced and the dollar climbed.

Shares rose in Japan and South Korea, while Australia was little changed. U.S. contracts were volatile after bargaining technology stocks that bore the brunt of the recent sell-off, boosted the S&P 500 and Nasdaq 100.

Concerns about China’s highly leveraged asset sector and widespread regulatory crackdown on private industries continue to overshadow sentiment. On Tuesday, representatives of Man Group, Soros Fund Management and Elliott Management raised concerns about the outlook for Chinese stocks. The country’s markets are closed for the holiday and reopen on Friday.

Volatility has increased in global markets as investors prepare for a slow but still strong economic recovery from the pandemic and a gradual monetary-policy tightening to contain price pressures. The political deadlock in the US over the country’s debt cap and President Joe Biden’s macroeconomic agenda are contributing to the uncertainty.

The 10-year Treasury yield rose to 1.55% and the 30-year yield rose to its highest level since June. Inflation risks from faster-than-expected US service-sector activity and rising crude oil and natural gas costs are adding to the reduction in Federal Reserve bond-buying. Traders await labor market data later this week for more clues about the outlook.

Crude oil extended its rally from a seven-year high.