Markets likely to continue consolidation; Vedanta in focus, Paytm to

On Wednesday, the BSE Sensex ended at 60,008.33, down 314.04 points or 0.52%. The Nifty was at 17,898.65, down 100.55 points or 0.56%.

Asian stocks were mixed Thursday and Treasuries were steady as traders weighed risks to the global economic recovery from the prospect of faster monetary-policy tightening to tackle inflation.

Equities slipped in Japan and edged up in Australia. S&P 500 futures fluctuated and Nasdaq 100 contracts edged up. U.S. shares pulled back overnight amid home building data signaling high materials prices and labor shortages.

Back home, billionaire Anil Agarwal’s Vedanta Ltd on Wednesday said it is considering separating its aluminium, steel, and oil and gas businesses, and publicly listing them, as it seeks to unlock value and simplify the company’s structure.

For a drugmaker licensed to produce Merck & Co.’s promising Covid-19 pill and sell Russia’s Sputnik V shot, Dr Reddy’s Laboratories Ltd. is surprisingly mellow about the rewards it expects from these medical breakthroughs even as virus waves continue to hit parts of the world.

Paytm parent One97 Communications will make stock markets debut on Thursday. The ₹18,300-crore public issue of One97 Communications, the largest ever in India, was subscribed 1.89 times in the price band of ₹2,080- ₹2,150 per share.

Shares of KFC and Pizza Hut operator Sapphire Foods will also be listed on stock markets today. The ₹2,073 crore issue was subscribed 6.62 times.

A dollar gauge was little changed after slipping from the highest level in more than a year, while the yen dipped following a bout of volatility. Treasuries were steady after ending higher in U.S. hours despite a lukewarm reception for an auction of 20-year notes.

Investors are grappling with the risk that the Federal Reserve will taper asset purchases and hike interest rates more quickly than expected to fight price pressures. Traders are also waiting to see if President Joe Biden picks incumbent Jerome Powell or Lael Brainard as the Fed chair nominee.

Oil extended losses on the prospect of a release of supplies from strategic reserves. Gold climbed on the drumbeat of concerns about inflation, while Bitcoin pushed past $60,000 again. Industrial metals flashed a rare synchronized warning over tight supply: spot prices for everything from aluminum to zinc on the London Metal Exchange are all soaring above futures — a state known as backwardation

(Bloomberg contributed to the story)