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The markets could continue to consolidate; Focus on Kotak Mahindra Bank, SBI, Vedanta

MUMBAI: Markets are likely to remain in the consolidation phase on Thursday as trends in the SGX Nifty point to a slight opening in the Indian benchmark indices. On Wednesday the BSE Sensex ended at 57,338.21, down 214.18 points or 0.37%. The Nifty closed at 17,076.25, down 55.95 points or 0.33%.

Asian stocks were stable on Thursday as investors await key US employment data to assess when the Federal Reserve might begin to reduce the significant stimulus that has bolstered financial markets.

Equities rebounded in Hong Kong amid a sustained rebound in Chinese tech stocks speculating that pressure from Beijing’s regulatory action has peaked. China’s market climbed, with traders evaluating a move by the central bank to cushion the economy by helping smaller businesses. The commodity-dependent Australian stock index slipped on the weakness of materials like iron ore.

US stock futures fluctuated. The Nasdaq 100 climbed to an all-time high overnight and the S&P 500 remained little changed. The defensive nature of trade came amid economic data pointing to a slower recovery in the US labor market.

Kotak Mahindra Bank announced on Wednesday that it had completed the process of selling over 8% of the shares in Airtel Payments Bank to Bharti Enterprises 294.80 crore. On Tuesday, the bank announced the conclusion of a share purchase agreement for the sale of 20 crore equity shares (almost 8.57% of the shares) of Airtel Payments Bank (APBL) to Bharti Enterprises.

The country’s largest lender, State Bank of India (SBI), said it had raised Rs4,000 crore over additional Tier 1 bonds at a coupon of 7.72%.

Vedanta Ltd said on Wednesday its board of directors had an interim dividend of. approved 18.50 per share for the 2021-22 financial year, in the amount of 6,877 crore.

Ten-year US Treasury yields remained at around 1.30%. Friday’s US salary report will provide guidance on the economy and a possible timetable for a reduction in the Fed’s $ 120 billion monthly bond purchases. The dollar held a drop.

Investors are trying to gauge when the delta variant virus outbreak might peak, as well as the impact of less monetary support from central banks in the coming months. Global stocks are near record highs and indicators of implied volatility in financial markets are decreasing, suggesting many remain optimistic that the post-health reopening will meet the challenges.

(Bloomberg contributed to the story)

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