Nifty ended with marginal losses on Wednesday on back of major selling in Bank Nifty while gains in technology index provided relief for markets. With Fed announcing tapering from next meet and interest rate hike from next year, rupee may come under pressure which has already activated breakout above 73.60 for a potential target of 77. Another important trigger was seen from energy prices where Brent Crude has crossed above USD 76 and this may indicate that we may soon see Brent crude hitting USD 90 in the coming few weeks. We expect Bank Nifty to come under severe pressure with rise in energy prices and major breakdown seen below 36300.
On the global front, the Fed clearly indicated that QE tapering is set to be announced in the upcoming Nov meeting and also may start raising its benchmark interest rate sometime next year, earlier than it envisioned three months ago. This is a clear sign that Federal Reserve signals a Shift Away From Pandemic support and it’s concerned that high inflation pressures may persist. Asia-Pacific stocks mixed as investors continue watching Evergrande situation. Dow jumped 338.48 points to 34,258.32 while the S&P 500 gained 0.95% to 4,395.64. The Nasdaq Composite advanced 1.02% to 14,896.85.
Stocks in news
Japan’s Kubota may raise stake in Escorts; In talks to buy promoters’ 15% now, looks to acquire their entire holding valued at Rs 7,496 cr in a phased manner.
Bharti, Reliance Jio tooled up for indigenous 5G network trials
State Bank of India prepared to support Tata group’s bid for Air India
Godrej Consumer eyes double-digit growth in FY22, expansion across sections
Tata Steel, JSW Steel betting big on tinplate
FMCG major Emami aims decent margin in FY22 despite hike in input cost
Reliance Infra to use ₹7,100 cr from DMRC arbitral award to repay debt
Alkem Labs’ bets on domestic growth, revival in US market
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