The market may grow; HDFC, Tata Motors in focus

Asian stocks rose on Monday on a post-election jump in Japan’s Nikkei, although bonds faltered and the dollar strengthened as traders looked at rates policy outlook for central bank meetings in Britain, Australia and the United States. defined.

Japan’s Nikkei rose 2.3% to a one-month high after Prime Minister Fumio Kishida’s Liberal Democratic Party fared better than expected in Sunday’s election, with exit polls indicating the party could easily maintain a majority.

Elsewhere trading was more muted, with MSCI’s index of Asia-Pacific shares outside Japan rising marginally. Weekend data showing a sharper-than-expected contraction of Chinese factory activity dampened the mood.

Key companies including HDFC, Tata Motors, Relaxo Footwears, Indian Railway Finance Corporation, Whirlpool of India, Aditya Birla Capital and Bayer CropScience, Phoenix will release its September quarter results today.

State-owned power giant NTPC has placed an order for 9,30,000 tonnes of biomass pellets for co-firing in power plants, which will help improve air quality, the power ministry said. In addition, Haryana, Punjab and Uttar Pradesh are procuring 1,301,000 tonnes of biomass pellets for co-firing in their power plants, the power ministry said in a statement issued on Sunday.

According to data analyzed by prime database group primeinfobase.com, LIC’s stake in 281 NSE-listed firms, where it holds more than 1%, declined to 3.69% of the total market value of these companies as of September 30.

This is down from 3.91% at the end of September last year and 5% at the end of June 30, 2012.

Meanwhile, with policy adjustments in the US Federal Reserve Bank of England and the Reserve Bank of Australia, the highlight of a week filled with central bank meetings likely to move markets, as upward pressure on the outlook for inflation rates puts. The Fed, which concludes a two-day meeting on Wednesday, is expected to say it will begin reducing bond purchases, although markets are focused on clues about a rate hike.

Fed funds futures are trading up in price as early as the second half of 2022 and Goldman Sachs on Friday extended its hike forecast from Q3 2023 to July.

The prospect of higher rates soon spooked short-dated bonds around the world, putting pressure on liquidity in recent weeks, although Monday’s trading was a bit quiet. Two-year US Treasury yields rose 2 basis points to 0.5227% in Asia trade. The benchmark 10-year yield rose 1.2 basis points to 1.5732%. October was the worst month for the two-year Treasury in more than three years.

In currency markets, the dollar made sharp gains on Friday and rose slightly higher on the risk-sensitive Australian and New Zealand dollars. It rose to 114.26 yen and climbed 0.1% to $1.1554 per euro. Sterling slipped to a two-week low of $1.3663 as traders thought a minor rate hike on Thursday could come with a weak outlook.

Commodity prices fell 0.2% to $83.45 a barrel and US crude futures fell 0.6% to $83.06 a barrel in early trade with benchmark Brent crude futures trading 0.2% lower. The strengthening of the dollar weighed on gold, which was trading at $1,781 an ounce.