Markets may continue consolidation; Kotak Mahindra Bank, SBI, Vedanta in focus

SBI, the country’s largest lender, said it has raised ?4,000 crore via additional Tier 1 bonds at a coupon rate of 7.72%, the first such issuance in the domestic market after the Securities and Exchange Board of India issued new rules.

Markets are likely to continue to be in consolidation phase on Thursday while trends in SGX Nifty indicate a mild opening of Indian benchmark indices. On Wednesday, the BSE Sensex ended at 57,338.21, down 214.18 points or 0.37%. The Nifty closed at 17,076.25, down 55.95 points or 0.33%.

Asian stocks were steady Thursday as investors await key US employment data to assess when the Federal Reserve may start paring the substantial stimulus that has bolstered financial markets.

Equities rallied in Hong Kong amid a continuing rebound in Chinese technology stocks on bets that the pressure from Beijing’s regulatory crackdown has peaked. China’s market climbed, with traders assessing a central bank step to cushion the economy by helping smaller firms. Commodity-reliant Australia’s stock index slid on weakness in materials like iron ore.

US equity futures fluctuated. Overnight, the Nasdaq 100 edged up to an all-time high and the S&P 500 was little changed. The defensive flavour to trading came amid economic data suggesting a slower U.S. labor market recovery.

Kotak Mahindra Bank on Wednesday said it has completed the sale process of over an 8% stake in Airtel Payments Bank to Bharti Enterprises for ?294.80 crore. On Tuesday, the bank had informed about entering into a share purchase agreement for the sale of 20 crore equity shares (nearly 8.57% shareholding) of Airtel Payments Bank (APBL) to Bharti Enterprises.

The country’s largest lender State Bank of India (SBI) said it has raised Rs4,000 crore via additional Tier 1 bonds at a coupon rate of 7.72%, the first such issuance in the domestic market after the Securities and Exchange Board of India issued new rules.

Vedanta Ltd on Wednesday said its board has approved an interim dividend of ?18.50 per equity share for FY2021-22, amounting to ?6,877 crore.

Ten-year US Treasury yields remained around 1.30%. The U.S. payrolls report Friday will offer clues on the economy and a possible timeline for a reduction in the Fed’s $120 billion of monthly bond purchases. The dollar held a drop.

Investors are trying to assess when the delta-variant virus outbreak might peak as well as the implications of reduced central bank policy support in the months ahead. Global stocks are near record levels and gauges of implied financial market volatility are declining, suggesting many remain optimistic that the reopening from the health crisis will weather challenges.

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