Markets likely to remain higher; Bharti, Hero Motocorp, bank stocks in focus

The government seeks to dispose of ?2 trillion worth of bad loans in next five years and has provisioned ?30,600 crore guarantee to back security receipts issued by the newly constituted National Asset Reconstruction Company Ltd (NARCL) against the stressed assets

Markets are likely to be firm on Friday while trends in SGX Nifty indicate a positive opening of Indian benchmark indices. On Thursday, the 30-share Sensex rose 417.96 points, or 0.71%, to 59,141.16. The National Stock Exchange’s Nifty index gained 110.05 points, or 0.63%, to 17,629.50.

Stocks were mixed Friday as risks to the global recovery from China and the prospect of reduced Federal Reserve stimulus subdued sentiment. Iron ore was on track for a record weekly slump.

Equities rose in Japan and fluctuated in Hong Kong and China, where traders are monitoring Beijing’s regulatory crackdown as well as the fallout from the debt crisis at China Evergrande Group. Miners sapped Australian shares amid the retreat in iron ore on China’s push to rein in its steel industry.

S&P 500 and Nasdaq 100 futures slipped. US stocks closed mostly lower after swinging between gains and losses ahead of Friday’s quarterly expiration of options and futures, which can trigger volatility.

Telecom dispute appellate body TDSAT on Thursday stayed the telecom department's demand of ?1,376 crore from Bharti Airtel in unpaid past dues that defunct telco Videocon Telecommunications owed. The dues were of Videocon Telecommunications, whose spectrum was acquired by the Sunil Mittal-led carrier in 2016. And so the Department of Telecommunications (DoT), post-Supreme Court verdict on the adjusted gross revenue (AGR) last year, asked Airtel to pay the dues that arose on that spectrum.

Hero MotoCorp on Thursday informed it will hike prices of its motorcycles and scooters with effect from Monday, 20 September. Hero MotoCorp has attributed the decision to hike prices to increase in commodity prices. Hero MotoCorp motorcycles and scooters will be more expensive to buy from Monday, by up to ?3,000.

The government seeks to dispose of ?2 trillion worth of bad loans in next five years and has provisioned ?30,600 crore guarantee to back security receipts issued by the newly constituted National Asset Reconstruction Company Ltd (NARCL) against the stressed assets.

Treasury yields and the dollar stayed higher following surprise strength in U.S. retail sales, which eased worries sparked by the delta strain and highlighted the case for the Fed to scale back ultra-loose policy. Jobless claims increased, likely reflecting volatility in weekly data as the labor market broadly recovers.

Global equities are on course for a second weekly drop, restrained by the impact of the delta strain on economic reopening, the implications of elevated inflation and the upheavals in China. The Fed’s policy meeting next week is another possible source of volatility as traders await more clues about the time-line for paring bond purchases and eventually hiking interest rates.

Oil was steady, while iron ore’s losing streak threatens to push futures back below $100 a ton. Gold trimmed a drop. An index of commodity prices has slipped but remains in sight of a record hit in 2011, underscoring the inflation concerns rippling through the world economy.

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