Market likely to remain strong; Axis Bank, Telco, Auto Stocks in Focus

Asian stocks were stable on Thursday amid gains in energy stocks and as traders assessed risks from the debt crisis in China Evergrande Group. Crude oil was at a six-week high.

Japanese stocks fell, Hong Kong retreated and China fluctuated. The S&P 500 made its biggest jump since August after avoiding a break above its 50-day moving average, followed by little change in US futures. Dollar was low.

Tata Sons Ltd and promoters of budget airline SpiceJet Ltd are among at least two suitors for Air India Ltd as the long-running sale of the loss-making national carrier has reached the final stages.

The Union Cabinet on Wednesday approved a slew of policy measures to provide relief to the cash-strapped telecom sector, including a four-year moratorium on payment of statutory dues by telecom companies and allowing 100% foreign investment under the automatic route. . Telecom Minister Ashwini Vaishnav said in a press briefing that the Union Cabinet has also approved nine structural changes and five process reforms that will bring about a qualitative change in the sector.

The government has also approved a production linked incentive scheme for the auto, auto-component and drone industry to enhance India’s manufacturing capabilities.

Axis Bank on Wednesday said its board of directors has approved reclassification of The Oriental Insurance Company Limited (OICL) from promoter category to public category shareholder. The bank said that it received a request from OICL to hold 0.16% stake in the bank on September 7, 2021, so that it can be reclassified from promoter to public shareholder.

Oil stabilized after a rally on US reports showing a bigger-than-expected fall in crude reserves, indicating a tight market.

Investors continue to assess the outlook for an economic reopening amid the outbreak of the delta virus strain and rising costs due to higher commodity prices and pandemic-related supply shortages. The United Nations said this year the global economy is expected to recover the fastest in nearly five decades, but warned about deepening inequalities between advanced and developing countries.

The progress of US President Joe Biden’s economic agenda is also in focus. The biggest set of US tax hikes in a generation took a major step forward on Wednesday with the House Ways and Means Committee approval in a new levy of $2.1 trillion, mostly focused on corporations and the wealthy.

(Bloomberg contributed to the story)