Home / Markets / Stock Markets /  Markets likely to continue consolidation; Vodafone Idea, Apollo Tyres in focus
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MUMBAI: Indian stock markets will likely continue to consolidate on Tuesday, with SGX Nifty futures indicating a steady opening for domestic benchmark indices. On Monday, the BSE Sensex ended at 60,718.71, up 32.02 points, or 0.05%, and the Nifty was at 18,109.45, up 6.70 points or 0.04%.

Global stocks were steady on Tuesday as traders weighed inflation risks and monitored the first face-to-face virtual summit between US President Joe Biden and Chinese leader Xi Jinping. Treasury yields and the dollar pared gains.

Shares rose modestly in Japan and fluctuated in Hong Kong and China. U.S. and European equity futures edged higher after the S&P 500 and Nasdaq 100 ended flat. Units of troubled Chinese developer Kaisa Group Holdings Ltd. posted mixed performance upon resuming trading in Hong Kong. At least some of Kaisa Group’s creditors haven’t received bond interest that was due last week.

Back home, debt-ridden telecom operator Vodafone Idea is evaluating the option of converting interest dues arising out of the deferment of statutory payments into equity, a senior company official said on Monday. The company is also in talks with banks and investors for raising funds and part of the proceeds is likely to be utilised towards meeting obligations related to debt maturing this fiscal, Vodafone Idea Limited (VIL) Chief Financial Officer Akshay Moondra said during the company's earning call.

Apollo Tyres is taking a price hike of 3-5% in the domestic market in the third quarter of this fiscal to offset the impact of rising commodity prices, which if continue to remain high, may compel it to take a similar increase in the fourth quarter, according to top company officials. Up until September, the company had taken an average increase of around 9% in tyre prices, Apollo Tyres said.

Real estate firm Macrotech Developers Ltd, earlier known as Lodha, on Monday launched a share sale to raise 3,000 crore- 4,000 crore from institutional investors.

The 10-year U.S. Treasury yield was around 1.60%. Bonds retreated overnight on speculation the Federal Reserve may have to speed up policy tightening to fight price pressures. Stronger-than-expected New York manufacturing data added to the case for an earlier interest-rate liftoff.

The U.S. and China are aiming to stabilize their relationship but downplaying hopes of major breakthroughs. Signs of improving bilateral ties could help sentiment, but the effect may be short lived given wider concerns over inflation and the fallout of Xi’s “common prosperity" drive to tackle inequality.

Elsewhere, oil rose as investors wait to see if the Biden administration will tap crude reserves.

(Bloomberg contributed to the story)

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