Markets likely to be in a narrow range; Future group, focus on aeronautical values


MUMBAI : Markets are expected to be in a narrow range Wednesday as SGX Nifty trends suggest a soft opening in Indian benchmarks. On Tuesday, the BSE Sensex finished at 60,322.37, down 396.34 points or 0.65% and the Nifty closed at 17,999.20, down 110.25 points or 0.61%.

Most Asian stocks plunged on Wednesday after robust US economic data pushed up Wall Street stocks, Treasury yields and the dollar and spurred more calls for tighter monetary policy .

Stocks were weaker in Japan and Hong Kong – including a drop in Chinese tech stocks – while US futures were little changed.

Still, a call for a more hawkish monetary policy from Federal Reserve Bank of St. Louis chairman James Bullard underscored concerns that high inflation could eventually bite. Treasuries posted losses, with a 10-year yield above 1.6%. Traders are waiting to see the strength of demand at a 20-year ticket auction on Wednesday. The dollar was near its highest level in 12 months, while the yen traded around its weakest against the greenback in more than four years.

A key part of the Singapore court order will be the mainstay of Amazon.com Inc.’s legal defense against claims by directors of Future Retail Ltd (FRL) that the e-commerce giant has withheld facts to gain antitrust approval of a 2019 deal to buy a stake in a Future group company that gave it an indirect stake in FRL, exclusive to Mint.

Akasa Air, a new airline backed by Rakesh Jhunjhunwala, has ordered 72 737 Max planes from US aerospace company Boeing to launch service in India, a statement said on Tuesday.

Shareholders of Coforge Ltd, formerly known as NIIT Technologies, including its controlling owner Baring Private Equity Asia, will sell securities valued at up to $ 750 million as part of a proposed offer of American Depositary Receipts (ADR) in the United States.

Markets are waiting for President Joe Biden to select the Fed’s presidential candidate, with Jerome Powell’s current term ending in February. Biden said the pick will arrive in about four days, with Powell and Governor Lael Brainard both in the frame.

Meanwhile, Treasury Secretary Janet Yellen has indicated that the U.S. government will risk defaulting unless lawmakers lift the legal debt ceiling by December 15. Yields on treasury bills maturing at the end of the year have increased.

(Bloomberg contributed to the story)

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