Good morning, everyone. It's Thursday, March 4, and welcome to today's Market Ahead, a pre-market podcast from Business Standard.
I am Saloni and here are the top cues that may move the market today. A look at the headlines first.
- Wall Street drops as high-flying tech stocks retreat
- Oil traders countdown to critical OPEC+ meet with WTI near $61
- Adani Ports buys Warburg's Rs 1954 cr stake in Gangavaram Port
- ED slaps money laundering case on Franklin Templeton MF
- Ircon Int'l OFS to open for retail investors today
- MTAR Tech IPO subscribed 4x on day 1
Now, the news in detail.
Investors on Dalal Street are likely to be reminded of last week's drubbing as concerns over spike in bond yields resurfaced to dent the global market mood. The three-session rally wherein Nifty reclaimed 15,000 mark could come to a halt today amid indications of a gap-down start for benchmark indices. At 7.15 am, SGX Nifty was trading 193 points or 1.27% down at 15,101.
In the overnight session, a renewed bout of Treasury volatility spurred a surge in bond yields, dragging down stocks as investors grappled with concern overstretched valuations. The Nasdaq Composite dropped 2.7%, to hit its lowest since early January while Dow Industrial Average fell 0.39% and the S&P 500 lost 1.31%.
Tracking the losses in US markets, Asian shares declined with US futures. Australia’s S&P/ASX 200 Index fell 1.2%, Japan's Topix index shed 0.7% and South Korea's Kospi index slipped 1.3%.
In early trade today, the 10-year Treasury yield crept higher to 1.482%, though were off the one-year high of 1.614% struck last week. All eyes, now, will be on Federal Reserve Chairman Jerome Powell, who is set to speak later today. Investors will be watching his remarks for signs the central bank is poised to concede the risk of a rapid rise in interest rates.
That apart, oil traders would also closely track the OPEC+ meet with no clear steer on how much supply the cartel will return to a fast-tightening market. Oil prices softened today after a 2% jump overnight. U.S. crude fell 0.47% to $60.99 per barrel.
Meanwhile, in other news, Franklin Templeton Mutual Fund (MF), which shut its six schemes in April 2020, is facing the heat from the Enforcement Directorate (ED) and Sebi. According to a BS report, while the ED has registered a money-laundering case against the fund house and eight others, Sebi has issued a show-cause notice and summons to the company and its key personnel who redeemed their investments days or weeks before the closure announcement.
Now, a look at the stock-specific developments that are likely to sway the market today:
Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ) on Wednesday said it is acquiring the 31.5 per cent stake of Windy Lakeside Investment in the Gangavaram Port (GPL) for Rs 1,954 crore. Windy Lakeside Investment is an affiliate of global private equity firm Warburg Pincus.
The offer for sale (OFS) of IRCON was over-subscribed on the first day of issue by institutional investors. The issue will open for retail investors today. The government is selling up to 16 per cent stake at a floor price of Rs 88 a share in railway PSU IRCON.
Bharti Airtel has raised $750 million through allotment of 'unsecured senior fixed rate notes' to eligible investors.
Bajaj Electricals and Mahindra Logistics signed a logistics optimisation and outsourcing contract worth over Rs 1,000 crore for the next five years.
CRISIL revised Indian Bank's Tier 1, Tier 2 and Infrastructure Bonds ratings to 'stable' from 'negative'.
Lastly, The Rs 597-crore initial public offering of MTAR Technologies was subscribed 3.68 times on Wednesday, the first day of the bidding process, on overwhelming support from retail investors.