The Indian markets are expected to remain stable for the remainder of the week. The bond yields held by the Asian equities shot up on the back of hopes of the Sino-American trade war soon coming to an end. The Indian stock and forex markets were closed yesterday on the event of Muharram.
In the early hours of Wednesday, the MSCI’s broadest index was up by 0.10%, and Nikkei shot up by 0.32%. The trade tension between the United States and China had adverse effects on the Asian markets. The latest development has eased the woes of investors who now have some sigh of relief.
The stocks of Yes Bank would be in focus. Rana Kapoor, the founder of Yes Bank, announced that there might be a rejig in the shareholding structure by the year-end. As per a Mint report, Rana Kapoor has initiated talks on selling a part of his shareholding in the bank with One97 Communications Ltd, the parent company of Paytm.
As per a Reuters story, Yes Bank is on the verge of selling its minority stake to a global tech giant. This is a part of their capital-raising activities. Yes Bank is lately troubled by its poor performance, which led to a downgrade in their ratings. The stocks of Yes Bank has lately seen massive ups and downs.
The stocks of auto industries would also be in focus. Nirmala Sitharaman, the Finance Minister of India, announced that the government would soon address the demands of the ailing auto sector. The sales and performance of the auto sector have slumped to their worst in over two decades.
The US Bond yield shot up on the back of 10-year treasury yields surging over ten basis points to touch 1.745%, which is a one-month high. The Japanese 10-year JGP shot up by 1.5 basis points while Germany’s benchmark bond yield finally entered a positive terrain.
The US Federal Bank is expected to cut interest rate next week in its policy review meet. This move is set to increase the FPI inflow in the Indian markets. This is a significant development for the Indian markets, which has seen massive selling by the foreign portfolio investors (FPIs) since July 2019.