like Asian peers, overall caution likely to prevail, say analysts

The NSE Nifty 50 (India 50) could trade cautiously on Wednesday quite in line with Asian equities, analysts told Capital.com. “Overall tone remains one of caution given concerns of red-hot inflation, soaring gas prices and slowing growth,” Deepak Jasani, head of retail research at HDFC Securities said.

“Mixed global cues combined with scheduled monthly expiry of August month contracts would continue to keep the participants on the edge,” Ajit Mishra, vice president (research) at Religare Broking said.

Adani Enterprises share price and TCS share price could see action on Wednesday that could influence the National Stock Exchange index.

“The market is expecting hawkish comments from the US Federal Reserve chairman Jerome Powells at Jackson Hole symposium.

Though near-term negatives in terms of concerns of depreciating rupee, widening trade deficit and volatility in global crude prices continue to exert pressure on economy and equity markets, we expect strong economic rebound, normalised commodity prices, inflation within a targeted range and better visibility in second half of FY23,” Mitul Shah, head of research at Reliance Securities, said.

Ahead of the Hole 

Federal Reserve Chair Jerome Powell will address the annual global central banking conference in Jackson Hole, Wyoming, on Friday.

His speech is highly-anticipated as it would signal how successful the central bank is in controlling inflation, and what additional measures it needs to take.

“On Tuesday, Asian shares traded largely lower, echoing a broad sell-off on Wall Street amid speculation about another interest rate raise from the US Federal Reserve. European stock markets traded in a mixed fashion on Tuesday following the release of key economic activity data,” Deepak Jasani, head of retail research at HDFC Securities said.

 

Hot stocks

Adani Enterprises

Adani Enterprises intends to acquire a controlling stake in local news network New Delhi Television (NDTV) through a hostile takeover. AMG Media Networks, an affiliate company of Adani Group, helmed by billionaire Gautam Adani, exercised rights to convert warrants against an outstanding loan of NDTV’s holding company, resulting in acquisition of a 29.18% stake in NDTV, according to a regulatory update.

The promoters of NDTV said that the exercise of rights by Adani Group without their consent or knowledge.

Tata Consultancy Services

Tata Consultancy Services (TCS) on Tuesday denied media reports that stated that India’s largest software exporter has delayed variable pay for senior employees for the first quarter of the current financial year. “We have come across completely incorrect reports on our compensation,” the company said.

Nifty on Tuesday

On Tuesday, Nifty ended up 0.5% at 17,577.50, snapping a two-day fall. Among sectors, metals, consumer durables and auto indices rose the most, while information technology index led the losers.

“Markets witnessed a swift rebound and gained half a percent, taking a breather after the recent dip. After the initial downtick, the benchmark inched gradually higher as the session progressed and finally settled around the day’s high,” Mishra said.

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