Federal Reserve Bank of Chicago President Austan Goolsbee called the latest US consumer and producer inflation data discouraging, raising concerns about persistent price pressures. While temporary factors such as tariffs and geopolitical conflicts could ease, he warned that demand driven by the rapid expansion of AI data centres could require a policy response.
Nuvama has initiated coverage on HFCL with a ‘Buy’ rating and a target price of Rs 380, implying a 56% upside from its reference price of Rs 244. The brokerage expects the company’s shift towards telecom and networking products, along with rising demand from data centres and exports, to drive earnings growth.
The Reserve Bank of India took decisive steps to stabilize the rupee, significantly affecting financial markets. New constraints led to skyrocketing hedging costs and dwindled liquidity in the forex sector. Moreover, bond yields soared to their highest in three years due to escalating oil prices and foreign outflows. Banks brace for possible downturns and reduced foreign-exchange dealings in the next quarter.
Jio Platforms IPO GMP today: Jio Platforms’ Rs 30,200 crore IPO has a grey market premium of Rs 220 ahead of its October 21 opening. Emkay Global and SBI Securities highlight its telecom leadership, earnings growth and digital expansion, while flagging valuation, regulatory and capital expenditure risks.
Indian Bank gained Rs 1,388 crore from the NSE listing, boosting second-quarter non-interest income by 50% to Rs 3,953 crore. The one-time gain offset pressure from rising bond yields, despite Rs 123 crore in mark-to-market losses. Meanwhile, Canara Bank and UCO Bank reported declines in other income, reflecting weaker treasury earnings.
Japanese investors sold foreign bonds for a fourth consecutive week, pushing year-to-date net outflows to 5.34 trillion yen, the highest since 2022. Rising domestic bond yields are encouraging capital repatriation, while foreign investors increase Japanese bond and equity holdings. However, life insurers’ limited selling suggests repatriation remains gradual.
Indian IT stocks staged a sharp comeback this week, adding Rs 2.6 lakh crore in market value as the sector gained 12% to become the best-performing index. Better-than-expected Q2 earnings, positive management commentary and a selloff in AI-linked stocks helped revive sentiment, even as concerns over AI adoption and earnings growth persist.
Microsoft heads into its October 28 earnings report amid bullish analyst sentiment, driven by Azure growth and AI adoption, as investors assess monetisation, capital expenditure and profitability prospects.
Jewellery stocks, including Shanti Gold International, PC Jeweller and Sky Gold and Diamonds, rose sharply on Friday as mutual fund houses temporarily restricted fresh subscriptions to gold ETF Fund of Funds. With the festive and wedding season approaching, analysts expect resilient gold demand, while organised retailers could benefit from market share gains.
Federal Reserve Chair Kevin Warsh gave no signal on whether the US central bank would change interest rates at its October 27-28 meeting, reiterating its commitment to price stability. Markets await further clues from economic data and policymakers on the rate outlook.
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