Investors are still assessing the string of earnings data that remained mixed in nature heightening concerns of a looming recession. Inflation remains a hot topic as the UK registered its highest CPI in 40 years on Thursday.
India’s economic growth outlook stagnates, stuck in lower gear: Reuters poll
India’s economy will grow well below its potential over the next two years, with inflation staying above the mid-point of the Reserve Bank of India’s tolerance band despite recent interest rate rises, according to a Reuters poll of economists.
While growth was expected to be faster than many other economies, it would be too slow for the job creation needed to pull tens of millions of people out of poverty in a country typically ranked one of the worst in the world for hunger. (Full Report)
Apollo Hospitals stock under pressure in today’s session, drags the Healthcare index
Citi, Barclays See Indian Rupee Slumping Toward 85 to a Dollar
India’s central bank is likely to loosen its recent grip over the rupee, analysts at Citigroup Inc. and Barclays Plc said, leaving the local currency vulnerable to plumb fresh lows against the almighty dollar.
Citi expects the rupee to push to 85 to a dollar, while Barclays says that the risk of a short-term overshoot to 84-85 is high. The currency has been hitting a series of lows, pushing past 83 to a dollar on Wednesday, making it one of the worst performers in Asia over the past month.
If the rupee hits 85 to a dollar by December, it would have lost 12.5% this year — the steepest decline in a decade. While the Reserve Bank of India has stepped in regularly to smoothen the rupee’s drop, analysts said the intervention is depleting the foreign exchange pile at a robust pace. (Bloomberg)
With focus on freight, railways plans 90,000 wagons additions by 2025
Indian Railways plans to add 90,000 wagons by 2025, a move that will provide a fillip to the domestic wagon manufacturing industry, a report by rating agency Icra said.
“With the commissioning of dedicated freight corridors, along with a target to increase the share of freight transport through the railways, the Indian Railways plans to add 90,000 wagons,” the report said. (Read More)
Huge scope for India to move in global value chain systems: Commerce Secy
There is a huge scope for India to move in the global value chain systems and have high-value addition in global exports, Commerce Secretary Sunil Barthwal said on Thursday.
India’s share in global exports is less than 2 per cent. So, huge potential is there to boost the shipments despite global headwinds and low trade growth predictions, he added.
“So, we can easily aim for doubling our exports and increasing our exports (share) to 10 per cent over a period of time and these opportunities exist even if somebody is saying that global trade scenario is looking bleak,” he said here at the CII National Exports Summit.
The domestic exporters should not be pessimistic about this scenario, he added. (PTI)
Japan’s Nikkei cuts losses after report of China reviewing shorter quarantine
Japan’s Nikkei share average cut losses in volatile afternoon trade on Thursday after a report said China was mulling an easing of COVID-19 rules for visitors.
The Nikkei share average finished the day down 0.92% at 27,006.96. The index rose as high as 27,092.55 with about 45 minutes left to trading, following a Bloomberg report that China was considering a cut in the quarantine period for inbound tourists to seven days from 10.
Airlines rose, with ANA Holdings and Japan Airlines gaining 1.63% and 1.64%, respectively.
The broader Topix also pared losses to end 0.51% lower at 1,895.41. (Reuters)
E-gaming Federation to challenge Tamil Nadu’s ordinance to ban online gaming
The E-gaming Federation (EGF) is set to challenge the recent ordinance issued by the Tamil Nadu government to ban online gaming where it categorised rummy and poker as “games of chance”.
According to the new legislation, no supplier of online games may offer online gambling services, permit the gaming of any online gambling that requires the use of cash or other risks or permit the gaming of any online game that violates the rules.
In a statement, EGF, a not-for-profit organization which works to protect consumer interest and self-regulate the Indian e-gaming sector, said, rummy has been settled as predominantly a game of skill by the Supreme Court and held to be protected under Article 19(1)(g) of the Indian Constitution. (ANI)
Steel prices fall 40 pc in last six months to ₹57,000/ton: SteelMint
Steel prices fell about 40% to ₹57,000 a tonne in the domestic market over the last six months on subdued export orders in the wake of the 15 per cent export levy, according to SteelMint.
In early 2022, the prices of hot rolled coil (HRC) started showing an upward trend. It had become a matter of concern for the user industries as movements in steel prices have a direct impact on industries like real estate and housing, infrastructure and construction, automobile and consumer goods.
The steel prices in the domestic market peaked at ₹78,800 per tonne in April. After an 18% GST levy, the price was about ₹93,000 per tonne, the research firm said. (PTI)
Prabhudas Lilladher on IndusInd Bank and Praj Industries – BUY
IndusInd Bank (IIB IN) – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd: Rating: BUY | CMP: Rs1,218 | TP: Rs1,450
IIB saw a strong quarter with core earnings beating estimates by 9% led by lower provisions due to material improvement in asset quality. GNPA fell by 24bps QoQ to 2.1% driven by considerable reduction (~50%) in net slippages while OTR pool too decreased from 2.1% to 1.5% QoQ and 70% of the fall was led by recoveries. PPoP came in as expected with NIM/NII, fees and opex being in-line. IIB is targeting a loan growth of 18-20% in FY23, keeping credit costs between 1.2-1.5%, though opex may remain elevated. Strong retail deposit formation would require rate gap with peers to be maintained. With material stress reduction, we lower provisions for FY23/24 and raise PAT by average ~5.3%. Over FY22-25E we expect an earnings CAGR of 31% while RoE may rise from 10% to 16%. Rolling forward to Sep’24 ABV we maintain multiple at 1.8x but raise TP from Rs1,300 to Rs1,450. Retain BUY.
Praj Industries (PRJ IN) – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd: Rating: BUY | CMP: Rs434 | TP: Rs520
We believe PRAJ is well poised for growth in the coming years given 1) its strong leadership in domestic ethanol plants (~60-65% market share), 2) global presence (+100 countries) 3) focus on future-ready technologies like 2G plants, Compressed Bio Gas (CBG) and 4) diversification in Wastewater Treatment (ZLD), Critical Process Equipment’s & System (CPES) & HiPurity business. Factoring in lower margins in H1FY23 and revenue mix skid towards domestic market, we lower our FY23E EPS by 5.4%, but keep it unchanged for FY24E and FY25E. The stock is trading at 37x/25.7x/24.5x FY23/24/25E. We roll forward our TP to Sep’24E with revised TP of Rs520 (Rs507 earlier) valuing it at 30x Sep24E EPS and maintain ‘Buy’ rating.
Porinju Veliyath portfolio: Investor books profit in small-cap pharma stock
Czar of small-cap stocks, Porinju Veliyath has booked profit in his pharma stock Cupid Ltd. Ace investor’s name is missing from the shareholding pattern of the company for July to September 2022 period. However, his company’s name Equity Intelligence India private Limited was present in the shareholding pattern of the company for April to June 2022 quarter.
According to Cupid’s shareholding pattern for July to September 2022 period, Porinju Veliyath’s company’s name is missing whereas it was present in the shareholding pattern of the company for Q1FY22 period. In shareholding pattern of the company for first quarter of the current fiscal, Porinju Veliyath was holding 1.70 lakh shares of the company, which was 1.27 per cent of total paid up capital of the company. (Read More)
Noon Update: Indices marginally in red with Sensex down 120 points and Nifty shedding 30 points
IndusInd Bank drags while UPL shines in the first half on Thursday.
Adani arm bags ₹1,300 cr smart meters installation deal from Mumbai’s BEST
Adani Transmission on Thursday announced that it has bagged a deal to instal and maintain 10.80 lakh smart meters for BEST Undertaking.
Sources pegged the deal value for the multi-year-old engagement by Adani Transmission’s distribution platform at ₹1,300 crore.
The Brihanmumbai Electric Supply and Transport Undertaking is a state-run utility that serves consumers in the island city exclusively.
Adani Transmission’s subsidiary Adani Electricity Mumbai distributes power in the suburbs, where it competes with Tata Power. The company has also gone public with its ambitions to expand to other pockets in the state and capitalise on a liberalised policy once it is implemented. (PTI)
IT stock declares ₹15 interim dividend, record date next week. Details here
While announcing its second-quarter earnings for the current fiscal year, L&T Technology Services Ltd’s (LTTS) board of directors of the company also declared an interim dividend of ₹15 per share and fixed the record date for the same of next week on Friday, October 28, 2022.
“The Board of Directors have also declared an Interim Dividend of Rs. 15/- per equity share. The Interim Dividend shall be paid to equity shareholders of the Company whose names will appear in the Register of Members or in the records of the Depositories as Beneficial Owners of Equity shares as on Friday, October 28, 2022 which is the Record Date fixed for the aforesaid purpose,” L&T Tech informed in the exchange filing. (Read More)
PSU Banks remains under pressure for second day in a row; most stocks in red
UPL Ltd shines in today’s market, adds almost 3%
India regulator fines MakeMyTrip, Oyo for anti-competitive conduct
India’s competition regulator said on Wednesday that it had fined online hotel-booking companies MakeMyTrip Ltd and Goibibo and IPO-bound hotel chain Oyo a combined $47 million for anti-competitive behaviour.
The Competition Commission of India (CCI) has been investigating the companies since 2019 following allegations by a hotel body that MakeMyTrip gave special treatment to SoftBank-backed Oyo on its platform.
The CCI has directed MakeMyTrip and Goibibo (MMT-Go) to amend their market behaviour after fining them about $27 million. Oyo was fined $20 million.
OYO and MakeMyTrip were reviewing the CCI order, the companies said in separate statements issued late on Wednesday.
“OYO believes that our business practices and conduct comply with all applicable laws and will take all necessary steps to explain our position in the appropriate forums,” the company said. (Reuters)
Revfin raises USD 10 mn in a Series A funding
Electric vehicle financing digital platform Revfin on Thursday said it has raised USD 10 million (over ₹80 crore) in a Series A round of funding.
The funding round was led by Green Frontier Capital (GFC), a VC fund focusing specifically on climate investments; LC Nueva Investment Partners, a partnership between Singapore’s Lighthouse Canton and Nueva Capital, and existing investors.
The funding round was a combination of equity and debt.
Revfin will use the funds to expand its geographical footprint to 25 states and capture over 10 per cent of the national market share of financed electric three-wheelers, the company said in a statement.
Further, the company said the fresh funds would also be used to diversify into electric two-wheelers for last-mile deliveries and electric four-wheelers for mid-mile cargo delivery and ride-share taxis. (PTI)
IT index remains stable, adds 0.5% in today’s session
Mint SnapView: Lagging two-wheelers will drag a speeding auto sector
As evidence of the economy’s K-shaped recovery in the aftermath of Covid, the domestic two-wheeler industry is the most fitting example. In fiscal 2022, sales crashed to a decade-low of 13.5 million units, capping a run of three consecutive fiscals of regression. (Full Report)
Nestle India shines in today’s trading; pushes the FMCG index in the green zone
Tracxn Technologies shares make a positive market debut as stock lists at premium
Shares of Tracxn Technologies Ltd made a positive stock market debut on Thursday with the stock listing at ₹84.5 apiece on the NSE, a premium of nearly 6% as compared to its IPO issue price of ₹80 per share. On the BSE, Tracxn Technologies shares started trading at ₹83 apiece, up over 4% from the issue price. (Read More)
Ashika Stock Broking views on today’s market: Immediate support for the market is seen at 17100
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a Doji like candle on the daily time frame following two continuous day of rally indicates of a breather at near strong resistances which coincide with a downward sloping trend line that has held down the highs of 2021 and 2022. Hence Index need to decisively close above it for the uptrend to continue, breach of which would lead the Index further higher towards the Sept’22 high of 18096. Immediate support for the market is seen at 17100 as slower pace of retracement over the past few sessions indicates of inherent strength in Nifty to add further on numerous occasions index witnessed buying demand in the vicinity of 200 days EMA. The momentum indicator RSI (relative strength index) is sustaining above 50 levels and has started to form Higher High, Higher Low which is in sync with the trend. This reflects the rising momentum in the prices. Eventually, one can expect the index to accelerate upward momentum. However, such a move would be in a non-linear fashion amid global volatility. During the day index is likely to open on a negative note tracking weak global cues. Hence, as long as Index trades above 17350 momentum is likely to remain positive and buy on dip towards 17250-17270 would be the ideal approach going forward.
Tesla flags its cars not ready to be approved as fully self-driving this year
Tesla Inc’s advanced driver assistant software won’t gain regulatory approval in 2022, CEO Elon Musk said in remarks which indicate the company is not yet able to satisfy authorities that its cars can be driven without someone behind the wheel.
The Silicon Valley automaker sells a $15,000 software add-on called “Full Self-Driving” (FSD) which enables its vehicles to change lanes and park autonomously. That complements its standard “Autopilot” feature which enables cars to steer, accelerate and brake within their lanes without driver intervention.
However, the cars still need to be driven with human oversight. A completely autonomous vehicle would require regulatory approval.
Musk told a post-earnings call on Wednesday that all FSD users in North America will get an upgraded version at the end of the year, adding that while its cars are not ready to have no one behind the wheel, drivers would rarely have to touch the controls. (Reuters)
Consumer Durable drag the market, tanks 1.5% in early trading
IndusInd Bank sink in early trading post its quarterly results; sheds 3% in early trading
The bank on Wednesday reported a rise of 60.4% in net profit for ₹1786.72 cr for the September quarter. The net profit for the corresponding quarter was ₹1113.53 crore. The bank’s provisions during the quarter fell over 33% on year to ₹1,141.06 crore as compared to ₹1706.95 crore in the corresponding quarter. In the June quarter, provisions stood at ₹1,250 crore.
Rupee hits fresh low vs US dollar, may slide to ‘84 levels soon’
The Indian rupee fell to 83.06 in early trade today as the surge in Treasury yields and the dollar index fuelled a broader decline in Asian currencies and equity markets. The rupee had hit a record low of 83.02 in the previous session. Asian equities tumbled today, tracking a sell-off on Wall Street, while the dollar regained its strength as surging inflation and interest rate hikes fears returned to the fore. (Read More)
Sensex opens below 59,000, Nifty gives up on 17,500. IndusInd Bank tumbles
Reliance Securities Stock in Focus for today: GPIL
STOCK IN FOCUS
GPIL (CMP 272)
We have BUY rating on GPIL, with a 12-month SOTP-based Target Price of Rs440.
NESTLEIND (PREVIOUS CLOSE: 19,739) BUY
For today’s trade, long position can be initiated in the range of Rs19,665- 19,550 for the target of Rs20,140 with a strict stop loss of Rs19,430.
MUTHOOTFIN (PREVIOUS CLOSE: 1,050) BUY
For today’s trade, long position can be initiated in the range of Rs1,048- 1,042 for the target of Rs1,074 with a strict stop loss of Rs1,032.
ABBOTINDIA (PREVIOUS CLOSE: 18,221) BUY
For today’s trade, long position can be initiated in the range of Rs18,110- 18,010 for the target of Rs18,640 with a strict stop loss of Rs17,840.
Cryptocurrency prices today: Bitcoin, ether fall. Check latest rates
Cryptocurrency prices today plunged with the world’s largest and most popular digital token Bitcoin trading more than a per cent lower at $19,060. After surging to an all-time high of almost $69,000 in November last year, Bitcoin’s price has been trading in a narrow range of around $20,000 since June this year. (Read More)
Sensex in red at preopen; Tracxn Technologies to debut in the bourses today
Geojit Financial Services views on today’s market: So long as DIIs are flush with funds, markets are unlikely to correct sharply
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “The recent 3 percent rally has taken the Nifty to just 6 percent below its 52-week high. This rally in a difficult global equity environment has surprised many, including the FIIs, who have slowed down their selling. Sustained flows into mutual funds, particularly via the SIP route, is a major factor imparting strength to the market even in the context of negative global economic news. So long as DIIs are flush with funds markets are unlikely to correct sharply. Fundamental support to the market is coming from the good Q2 numbers particularly from financials. This week is a results-heavy week and most results from Nifty constituents are likely to be good.
The rising US bond yields and rising dollar are hitting all other currencies hard. This will continue to be a potential headwind for equity markets till US inflation starts showing a moderating trend.”
Japan’s Nikkei tumbles from two-week high as risk appetite evaporates
Japan’s Nikkei share average tumbled on Thursday, retreating from the previous day’s two-week high, as global recession worries soured risk appetite.
The Japanese equity benchmark slid 1.11% to 26,954.15 at the midday recess, and at one point dropped as low as 26,889.15.
It rose as high as 27,371.38 on Wednesday for the first time since Oct. 6. Recently, investors have been watching the psychological 27,000 line closely to gauge the market’s trend.
The Nikkei joined regional peers in extending a global stock rout that sent the U.S. S&P 500 down 0.67%, reversing a two-day rally.
Japan’s broader Topix lost 0.63% to 1,892.98. (Reuters)
Tata Motors bags order for 2,000 Xpres T EV from Evera
Tata Motors has bagged an order for 2,000 XPRES T EVs from ride-hailing platform Evera, the company informed on Wednesday.
In a statement regarding the same, Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said,”Evera has been associated with us for a long time, and we are delighted to further strengthen this tie up, by signing an agreement of delivering 2,000 EVs to them.” (Read More)
Infosys confirms 10-13% hike; embarks on wage cost battle
Infosys Ltd, India’s second-largest IT services company, has confirmed that a large part of its employees have received 10-13% salary hikes, with a section of top performers receiving 20-25% increments.
However, with falling attrition rates, Infosys is also trying to rein in wage costs by increasing utilization levels, reducing lateral hires and lowering the number of on-site employees. (Full Story)
Stocks to Watch: Tracxn Tech, IndusInd, NDTV, Havells, SJVN, Tata Motors, NHPC, AU Small Finance Bank, Bharat Electronics, Vodafone Idea
Bajaj Finance, Asian Paints, Axis Bank, Canara Bank, Colgate Palmolive, ITC, Tata Consumer, Mphasis, Coforge, and Central Bank of India will be in focus as they declare their September quarter earnings today. (Read More)
NSE may exclude HDFC from Nifty index before its merger with HDFC Bank
The National Stock Exchange may exclude heavyweight HDFC from 50-stock index Nifty closer to ex-date of its merger with HDFC Bank, which is likely to be concluded a few months ahead of the scheduled time.
The merger of the parent firm with its subsidiary HDFC Bank– the country’s biggest merger deal so far — is scheduled to be concluded by mid-2023.
The merger proposal of the two entities has already got all the approvals, barring shareholders’ nod (scheduled on November 25) along with the final clearance from the Reserve Bank of India.
HDFC has 5.5 per cent weight in the Nifty. This translates into USD 1.3-1.5 billion outflow from passive funds on its exclusion from the index. (PTI)
Rallis India’s quarterly profit rises 26% to ₹71 crore
Rallis India on Wednesday reported a 25.88% growth in profit after tax at ₹71.05 crore in the September quarter compared to the year-ago period.
Its profit after tax stood at ₹56.44 crore during the corresponding period of the previous fiscal, it said in a regulatory filing.
These figures are after taking into account the exceptional items.
The company’s revenue from operations rose 30.69 per cent to ₹951.18 crore in the second quarter of the current financial year. In the year-ago period, it stood at ₹727.80 crore. (PTI)
Vodafone Idea to consider a fundraising through convertible debentures
Vodafone Idea Ltd’s board of directors will meet on 21 October to consider a fundraising through convertible debentures, it said in an exchange filing on Wednesday.
“A meeting of the board is scheduled to be held on October 21, inter-alia, to consider and evaluate a proposal for issuance of debenture securities convertible into equity shares on a preferential or private placement basis to a vendor, subject to regulatory and other statutory approvals as may be required, including approval of the shareholders of the company,” the telco said. (Read More)
Buy or sell: Vaishali Parekh of Prabhudas Lilladher recommends 2 stocks to buy today — October 20
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher believes that overall bias on Dalal Street is still strong. On buy or sell stocks for today, Vaishali Parekh of Prabhudas Lilladher recommended two stocks to buy on Thursday and those two stocks are ITC and Laurus Labs.
Vaishali Parekh has recommended two stocks to buy today. Here we list out details in regard to those intraday stocks for today:
1] ITC: Buy at ₹346, target ₹355, stop loss ₹341; and
2] Laurus Labs: Buy at ₹528, target ₹545, stop loss ₹520. (Fully Story)
FMCG stock declares ₹120 second interim dividend. Check record date
While announcing its third quarter earnings, Nestle India said that its board has also recommended a second interim dividend of ₹120 per share and also fixed the record date for the same. Shares of Nestle India rose more than a per cent to ₹19,611 apiece on the BSE in Wednesday’s early deals.
The company further added that the second interim dividend for the year 2022 will be paid on and from 16th November 2022 to those Members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 1st November 2022. (Read More)
IndusInd Bank Q2 profit jumps to ₹1,805 crore on lower provisions
IndusInd Bank on Wednesday reported a 57 per cent jump in its September quarter net profit at ₹1,805 crore, helped by a reduction in money set aside as provisions for potentially sour loans.
The private sector lender reported an 18 per cent growth in the core net interest income at ₹4,302 crore on the back of an 18 per cent loan growth and the net interest margin widening to 4.24 per cent as against 4.07 per cent in the year-ago period.
Amid the ‘war on deposits’ in the system, the bank was able to grow its deposit book by 15 per cent during the second quarter of the current fiscal. (PTI)
Domestic air passenger traffic rises to 1.04 crore in September
Indian airlines carried nearly 1.04 crore domestic passengers in September, marginally higher than the traffic registered in August amid rising travel demand.
Data released by aviation regulator DGCA on Wednesday showed that domestic air passenger volume grew 46.54 per cent to 1.034 crore (103.55 lakh) in September compared to the year-ago period.
Domestic air passenger traffic has been improving and in August, it stood at 1.01 crore.
Indian carriers had ferried 70.66 lakh passengers on the domestic routes in September last year. (PTI)
Triton EV issues ‘Letter of Intent’ to BEL for purchase of battery packs
Electric vehicle maker Triton Electric Vehicle India has issued a letter of intent to defence public sector unit Bharat Electronics for the procurement of battery packs for its semi-truck project in India at an estimated value of ₹8,060 crore, according to a regulatory filing as quoted by the news agency PTI.
The filing stated that the 300-kilowatt lithium-ion battery packs are to be delivered by Bharat Electronics (BEL) to Triton in 24 months commencing from January 2023. (Read More)
Govt in talks for long-term Namibian crude contracts
India, the world’s third biggest oil importer, is looking to secure a long-term crude oil supply deal from Namibia, which is being hailed for one of the world’s largest oil finds in recent years, said two people aware of the development.
India’s plan of charting new geography to meet its energy needs comes against the backdrop of French energy majors TotalEnergies and Shell Plc making “giant” oil discoveries.
India has been trying to diversify its energy supplies with Indian Oil Corp. recently signing a long-term contract to procure crude oil from Colombia’s state-run Ecopetrol SA and Brazil’s state-run Petroleo Brasileiro SA (Petrobras). (Read More)
Tracxn Technologies IPO share listing date today. Experts predict ‘muted’ debut
Shares of Tracxn Technologies Limited are going to hit secondary markets today as Tracxn Technologies IPO listing date is 20th October 2022. As per the information available on the BSE website, effective from Thursday, October 20, 2022, the equity shares of Tracxn Technologies Limited shall be listed and admitted to dealings on the Indian stock market exchanges in the list of ‘B’ group of securities in Special Pre-open Session (SPOS).
According to stock market experts, financial market is going to face major challenges like global recession, rising interest rates that may hit activities and tractions of capital markets,, investment banks and family offices. They said that such challenges are expected to hit Tracxn Technologies as well. Apart from this, Tracxn Technologies share price has been oscillating at a grey market premium (GMP) of zero to minus ₹3 for last few days. So, the company share may have a ‘muted to negative’ debut today. (Read More)
Rupee plunges to record low level of 83 against US dollar on forex outflows
The rupee plunged by 60 paise to record low levels of 83 for the first time against the US dollar on Wednesday amid unabated foreign capital outflows and a strong dollar in the overseas markets.
Besides, rising crude prices in the international markets and risk-averse sentiment among investors weighed on the local currency, traders said.
The rupee had moved in a narrow range in the past three sessions on dollar selling by PSU lenders possibly on behalf of the RBI for curbing volatility and the US dollar index hovering near 112 level.
However, the dollar index breached the 112.55 level on Wednesday while US Treasury yields surged to a 14-year high, triggering a panic selling in the rupee, according to traders. (PTI)
Wall Street loses ground as more earnings roll in; yields rise
A broad slide on Wall Street reversed two days of gains for stocks Wednesday, as Treasury yields climbed to multiyear highs, tempting traders with higher returns on relatively low-risk investments.
The pullback came as investors reviewed a mix of quarterly reports from several companies. Netflix and United Airlines rose sharply after releasing their quarterly results, while others, including Abbott Laboratories and M&T Bank, sank.
Major indexes rose in the early going, but their gains faded fast. The S&P 500 fell 0.7%, the Dow Jones Industrial Average slipped 0.3% and the Nasdaq composite ended 0.9% lower. Small companies fell more than the rest of the market, sending the Russell 2000 index 1.7% lower.
Stocks were coming off of two days of gains, but trading has been unsteady throughout.
Elon Musk on Wednesday said he expected Tesla would miss its vehicle delivery targets but downplayed concerns about softening demand after the company’s revenue missed Wall Street estimates.
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