Markets likely to be wobbly; Zee, Gail, Adani Ports in brief
MUMBAI : Markets are expected to be wobbly on Tuesday as SGX Nifty trends suggest a weak opening in Indian benchmarks. On Monday, the Sensex BSE closed at 59,299.32, up 533.74 points or 0.91% and the Nifty was at 17,691.25, up 159.20 points or 0.91%.
A global equity sell-off continued in Asia on Tuesday amid fears that soaring prices for commodities such as crude oil could fuel inflation and undermine economic momentum.
MSCI Inc.’s Asia-Pacific stock index fell about 1.5%. Japan fell, pushing the Nikkei 225 down from a September high to more than 10%. A Hong Kong gauge of Chinese tech stocks slid and South Korea headed for a correction.
US futures were in the red after the S&P 500 returned to its lowest since July and the Nasdaq 100 lost more than 2%, led by mega-capitalization tech companies like Amazon.com Inc. and Facebook Inc. The energy sector was among the few to rise in the US and Asian sessions.
Amid the ongoing feud with the board of directors of Zee Entertainment Enterprises Ltd, Invesco urged the National Company Law Tribunal (NCLT) on Monday to pass an order securing the convening of the extraordinary general meeting (EGM) of the society. After hearing the case for a while on Monday, the court adjourned proceedings for Tuesday.
The National Company Law Appeals Tribunal (NCLAT) on Monday dismissed a petition filed by Gail India Ltd challenging Alok Industries’ insolvency resolution plan, which has now been taken over by a consortium of Reliance Industries and JM Financial Asset Reconstruction Co Ltd.
Adani Ports, which is rapidly expanding its network on the east coast, is set to enter the West Bengal maritime sector by becoming the first bidder to operate a berth at the Haldia Dock Complex, said Monday a manager. Adani Ports and Special Economic Zone Ltd outbid town-based Ripley & Co, citing a royalty of ??75 per ton for the rights to mechanize and operate the dry bulk handling station at HDC of Syama Prasad Mookerjee Port Trust, formerly known as Kolkata Port, he said.
Ten-year US Treasury yields were flat and the dollar reversed an overnight loss.
Oil has stabilized near the highest since 2014 following OPEC + ‘s decision to maintain a gradual increase in supply even as a natural gas crisis stimulates demand for crude. The Bloomberg Commodity Spot Index has reached an all-time high.
China’s indebted real estate sector continues to upset traders. Fantasia Holdings Group Co. failed to repay a $ 205.7 million bond that was due on Monday, adding to tensions for the country’s heavily indebted real estate companies following debt problems at industry giant China Evergrande Group. Chinese markets are closed for a public holiday and will reopen on Friday.
Global equities fell more than 5% from their high in early September, penalized by an imminent reduction in Federal Reserve stimulus, skyrocketing energy costs and the possibility of slower growth in China due to the crackdown on Beijing’s real estate sector.
U.S. lawmakers are also continuing their deadlock on the country’s debt ceiling, with President Joe Biden warning the government is at risk of exceeding the legal limit this month.
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