Markets likely to be volatile; Zee, auto stocks in focus – Mint

Asian stocks fell Wednesday while Treasuries retained gains amid concerns about the outlook for the recovery from the pandemic as price pressures filter through the global economy.

Shares retreated in Japan, Hong Kong and China, where data showed the economy weakened further in August as the government took steps to contain a Covid-19 outbreak.

Rakesh Jhunjhunwala has picked up nearly 5 million shares of Zee Entertainment Enterprises Ltd for ₹110.22 crore in a block deal, showed NSE data. The ace investor picked up the 0.52% stake at ₹220.44 apiece through his investment arm Rare Enterprises. According to the NSE, in a separate deal, BofA Securities Europe SA bought 4.86 million Zee Entertainment shares for ₹115 crore at ₹236.20 apiece. As of June, BofA Securities held a 1.03% stake in Zee.

Reliance Infrastructure Ltd will receive ₹7,100 cr from the Delhi Metro Rail Corporation Ltd (DMRC), which it will use to repay debt and to make the company debt-free, chairman Anil Ambani said on Tuesday during an annual general meeting (AGM) of the company.

The revised production-linked incentive (PLI) scheme for the automobile sector will likely be approved on Wednesday by the Union cabinet, aiming to boost local manufacturing and creating more jobs, PTI reported citing people with knowledge of the matter. The report added that the government has likely slashed the outlay for this PLI scheme to about ₹26,000 crore.

The 10-year Treasury yield has fallen to 1.28%, narrowing the yield gap between short- and longer-maturity US debt. Bonds in Australia and New Zealand rose. The yen climbed.

US inflation was less than forecast in August while remaining elevated, leaving the argument about whether pandemic-related prices pressures are transitory undecided. Some investors viewed the data as affording the Federal Reserve more flexibility on when to start tapering stimulus.

While the inflation print could be seen as easing pressure on the Fed to start pulling back on loose monetary policy, investors remain concerned about the impact of the delta virus variant and rising costs on economic reopening. Fund managers are souring on global growth and earnings but won’t give up on stocks, the latest Bank of America survey showed.

Elsewhere, oil gained after a U.S. industry report showed a decline in inventories of crude and gasoline, signaling a tightening market. Gold held a climb.

(Bloomberg contributed to the story)