Stock Market Live Updates: Global cues signal negative start for Sensex, Nifty; Asia-Pacific equities hold steady

Stocks to Watch: Jio Financial Services

Jio Financial Services: The stock hit the 5% lower circuit on Tuesday, as a result of which the scrip will now be removed from all S&P BSE indices on Aug. 29. If JFS continues to hit a lower circuit in the next two days, the removal date will be deferred by another three days.

Stocks To Watch: Brightcom Group

Brightcom Group: SEBI has barred Chairman and Chief Executive Officer Suresh Kumar Reddy and its Chief Financial Officer Narayan Raju from company boards for fraud and allegedly misrepresenting financial statements of the company. They are also barred from disposing off shares of the company until further notice, according to an interim order.

Market pessimism looms amid global uncertainty; Asia-Pacific stocks hold steady

The domestic markets are anticipated to open with a negative bias due to mixed global cues. Despite a varied performance in US markets overnight, Asia-Pacific stocks are generally flat and positive early on Wednesday. The continuous sell-off in US government debt has driven yields on benchmark Treasuries to 16-year highs, notably the 10-year note reaching 4.35%, the highest since November 2007. The increasing bond yields and concerns about potential US rate hikes are causing foreign institutional investors (FIIs) to withdraw funds from the Indian market, contributing to market volatility. While India has seen significant net FII flows and positive returns, challenges lie ahead due to factors like EL Nino’s impact on crops, rising food inflation, and uncertain rainfall outlook. Political risks are also expected to come into play as state and national elections approach. The economy is receiving government-induced capital expenditure, but high inflation could pose challenges in an election year. Market focus remains on specific sectors with strong fundamentals.

Asian equities stagnate amid ebbing Wall Street optimism

Asian stocks traded within narrow ranges as the previous day’s optimism in the Wall Street market waned, particularly following the surge in major technology company shares.

At the beginning of the trading day, there were minimal fluctuations in stock values in Japan and South Korea. Similarly, equities in Australia exhibited little change, and the futures indicating the expected performance of Hong Kong stocks indicated a 0.5% decline.

Investors continue to closely monitor China’s economic and financial challenges, making any indications of additional fiscal or monetary stimulus from Beijing highly appreciated.

In the previous trading session, the S&P 500 experienced a decline of 0.28%, the Dow Jones Industrial Average saw a decrease of 0.51%, and the Nasdaq Composite Index remained relatively stable.

Japanese PMI shrinks

Concurrently, a private sector survey revealed that Japan’s manufacturing activity had contracted for the third consecutive month in August due to elevated oil prices and uncertainty surrounding the global economic landscape. However, the pace of this contraction had eased, as indicated by the au Jibun Bank flash Japan Manufacturing Purchasing Managers’ Index (PMI), which inched up slightly to 49.7 in August from July’s figure of 49.6. It’s noteworthy that the index persisted below the crucial threshold of 50.0, signifying the border between economic contraction and expansion. – Agencies