Indian markets seen subdued on sell-off in global peers; Airtel, Jet in focus
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State-owned Bank of Baroda on Thursday, in a notice to exchanges, said its board has approved raising up to Rs4,500 crore from institutional investors through a so-called qualified institutional placement

Indian stock markets may see a muted session on Friday following a sell-off in global peers. Trends in SGX Nifty futures suggest a negative start to domestic benchmark indices.

On Thursday, the BSE Sensex ended at 51,039.31, up 257.62 points or 0.51%. The Nifty closed at 15,097.35, up 115.35 points or 0.77%.

Asian stocks skidded to one-month lows on Friday as a rout in global bond markets sent yields flying and spooked investors amid fears that heavy losses suffered could trigger distressed selling in other assets.

The scale of the selloff prompted Australia’s central bank to launch a surprise bond buying operation to try and staunch the bleeding, helping yields there come off early peaks.

Yields on the 10-year Treasury note eased back to 1.494% from a one-year high of 1.614%, but were still up a startling 40 basis points for the month in the biggest move since 2016.

Markets were hedging the risk of an earlier rate hike from the US Federal Reserve, even though officials this week vowed any move was long in the future.

Even the thought of an eventual end to super-cheap money sent shivers through global stock markets which have been regularly hitting record highs and stretching valuations.

Back home, state-owned Bank of Baroda on Thursday, in a notice to exchanges, said its board has approved raising up to Rs4,500 crore from institutional investors through a so-called qualified institutional placement. The floor price of the qualified institutional placement is fixed at Rs85.98 per share, a 4.36% discount to its Thursday's closing price. The stock closed at Rs89.90 on the BSE, up 1.2% from its previous close.

The National Company Law Tribunal (NCLT), which is hearing the resolution plan of the grounded carrier Jet Airways, on Thursday granted time till 2 March to aviation regulator DGCA to respond on the airline's slots issue.

The Burman family, the single-largest investor in Eveready Industries Ltd with a 20% stake, may become joint promoters of the battery maker along with the Khaitan family, according to a Mint report.

Bharti Airtel Ltd has raised $1.25 billion overseas by selling senior bonds and perpetual bonds, in the largest fundraising by any Indian investment grade issuer since January 2019, it said on Thursday.

Government owned RailTel Corporation will debut on the stock exchanges today. The Rs819 crore public issue was subscribed 42.4 times during 16-18 February share sale.

The surge in Treasury yields also caused ructions in emerging markets, which feared the better returns on offer in the United States might attract funds away.

Currencies favoured for leveraged carry trades all suffered, including the Brazil real, Turkish lira and South African rand.

The flows helped nudge the US dollar up more broadly, with the dollar index rising to 90.360. It also gained on the low-yielding yen, briefly reaching the highest since September at 106.42. The euro eased a touch to $1.2152.

The jump in yields has tarnished gold, which offers no fixed return, and dragged it down to $1,767 an ounce from the week’s high around $1,815.

Oil prices held near 13-month highs, with profit-taking limited by a sharp drop in US crude output last week due to the winter storm in Texas. US crude fell 44 cents to $63.08 per barrel and Brent lost 33 cents to $66.55.
 

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