Home / Markets / Stock Markets /  Markets likely to be volatile; SBI, Eicher Motors, Vodafone in focus

MUMBAI : Markets are likely to stay volatile on Wednesday while trends in SGX Nifty indicate a mute opening of Indian benchmark indices. On Tuesday, the BSE Sensex ended at 60,029.06, down 109.40 points or 0.18% and the Nifty closed at 17,888.95, down 40.70 points or 0.23%.

Asian stocks were steady Wednesday as traders mulled another all-time high for US equities and a retreat in short-term sovereign yields ahead of the Federal Reserve policy decision. Shares in China and Hong Kong fluctuated. Japan is shut for a holiday. S&P 500 and Nasdaq 100 futures were little changed following fresh peaks for U.S. shares.

Wall Street has been buoyed by the resilience of company profits to rising input costs amid pandemic-related supply chain and labor disruptions.

Among key companies, State Bank of India, Eicher Motors and Pfizer will release their September quarter results today.

Aditya Birla Group chairman Kumar Mangalam Birla is close to investing at least $150 million in Vodafone Idea Ltd in his personal capacity, as an immediate measure to keep the group’s cash-strapped telecom business afloat, according to a Mint exclusive.

The Reserve Bank of India (RBI) on Tuesday tweaked its prompt corrective action (PCA) framework to exclude the profitability parameter from its list of triggers.While capital, asset quality and profitability were the key areas for monitoring in 2017’s framework, this time round capital, asset quality and leverage will be key areas. That apart, RBI has also revised the level of shortfall in total capital adequacy ratio that would push the lender to “risk threshold three" category. Lenders breaching this risk threshold have the most stringent restrictions placed under PCA.

A gauge of the dollar held a climb. Cash Treasuries won’t trade in Asia because of the Japan holiday. US Treasury two-year yields overnight joined a global slide in short-term rates that was unleashed by the Australian central bank’s dovish stance. Australian sovereign yields declined.

The gyrations in short-term yields extend a period of heightened bond-market volatility as investors try to anticipate how hawkish central banks might become to quell inflationary pressures. The Fed is expected to announce that it will start tapering its massive bond purchases, but economists are divided on whether a rate liftoff will be next year or in early 2023.

Elsewhere, oil fell as the U.S. increased pressure on OPEC+ to boost supplies.

(Bloomberg contributed to the story)

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