Mumbai: Market Wednesday is likely to be volatile, while trends in SGX Nifty suggest a soft opening for the Indian benchmark indices. On Tuesday, the Nifty closed at 17,380, up 24.70 points. The BSE Sensex closed 69.33 points higher at 58,247.09.
Asian shares fell on Wednesday, while treasuries held gains amid concerns about the outlook for recovery from the pandemic as price pressures filter through the global economy.
Shares retreated in Japan, Hong Kong and China, where data showed the economy weakened further in August as the government took steps to contain the COVID-19 outbreak.
Rakesh Jhunjhunwala has bought around 5 million shares of Zee Entertainment Enterprises Ltd. ₹110.22 crore in a block deal, showed NSE figures. ace investor buys 0.52% stake ₹220.44 each through its investment arm Rare Enterprises. According to NSE, in a separate deal, BofA Securities Europe SA bought 4.86 million shares of Zee Entertainment ₹115 crore ₹236.20 each. As of June, BofA Securities held 1.03% stake in Zee.
Reliance Infrastructure Limited will receive ₹7,100 crore from Delhi Metro Rail Corporation Limited (DMRC), which it will use to repay debt and make the company debt-free, Chairman Anil Ambani said during an annual general meeting (AGM) of the company on Tuesday.
The Revised Production-Linked Incentive (PLI) scheme for the automobile sector, which will be approved by the Union Cabinet on Wednesday, aims to boost local manufacturing and generate more jobs, PTI reported, citing people with knowledge of the matter. . The report states that the government has reduced the outlay of this PLI scheme to approx. ₹26,000 crores.
The 10-year Treasury yield has fallen to 1.28%, narrowing the yield gap between short- and long-maturity US debt. Bonds rose in Australia and New Zealand. The yen went up.
US inflation was lower than forecast in August, while remaining high, leaving arguments as to whether pandemic-related price pressures are momentary undecided. Some investors saw the data as giving the Federal Reserve more flexibility in when to introduce tapering incentives.
While the inflation print could be seen as easing pressure on the Fed to pull back on loose monetary policy, investors are concerned about the impact of the delta virus version and rising costs on the economic reopening. Fund managers are souring on global growth and earnings, but won’t give up on stocks, Bank of America’s latest survey shows.
Elsewhere, oil rose after US industry reports slid in crude and gasoline inventories, indicating a tighter market. Gold went up.
(Bloomberg contributed to the story)
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