AI-related borrowing has surged substantially in low-rated U.S. firms this year, prompting investor scrutiny of financial assumptions. Lenders are seeking higher returns and greater compensation for the risks associated with these investments. While there is demand for predictable revenue streams, appetite for lower-quality AI credit remains limited. Borrowing costs have increased sharply as borrowers move further down the credit spectrum, impacting financing availability.
Eurozone bond yields rose sharply as energy-driven inflation strengthened expectations of further ECB rate hikes through 2027. French yields hit an 18-year high, while spreads for French and Italian debt widened amid fiscal concerns. Investors are reassessing inflation, borrowing costs, debt sustainability and political risks across heavily indebted eurozone economies.
Inox Air Products has filed IPO papers with Sebi for an issue entirely comprising an OFS of 7.7 crore shares, with no fresh issue component. The industrial and medical gas maker reported a 4% rise in FY26 net profit to Rs 914 crore and 9% growth in revenue to Rs 3,034 crore.
Escorts Kubota shares fell sharply on Thursday after September tractor sales declined 16.7% year-on-year, while VST Tillers shares rose 5% as total sales jumped 33%. Escorts cited a high base, festive season shift, patchy monsoon and lower Kharif sowing. Brokerages expect rural demand, festive buying and improving liquidity to support auto-sector volumes.
The US 10-year Treasury yield hit its highest level in 24 years on Thursday, as a brutal bonds selloff gathered pace.
Highway Infrastructure shares jumped after the company secured toll operations orders worth Rs 254 crore from UPEIDA and NHAI. The key order, worth Rs 220.66 crore, involves toll collection and plaza operations on the Gorakhpur Link Expressway, along with deployment of patrol-cum-safety vehicles.
US Treasury yields reached multi-year highs as a historic bond selloff extended into a seventh session. The 10-year yield touched 5.31%, while the 30-year exceeded 5.65%. Persistent inflation, energy costs, strong AI investment and shifting Fed expectations pressured bonds. Falling oil prices offered some relief, but global yields remained elevated.
Bank of Japan policymakers saw scope for faster interest rate hikes as persistent inflationary pressures raise concerns about price growth exceeding the central bank’s 2% target. A summary of its September meeting showed support for further tightening, although some policymakers argued against rushing and stressed the need to monitor economic developments.
Foreign institutional investors pulled out over Rs 20,000 crore from Indian equities in two trading sessions as the Nifty and Sensex head for an eighth straight weekly decline. Elevated crude prices, high US bond yields and rate concerns have weighed on sentiment, while analysts differ on the outlook for foreign inflows.
Shares of travel tech firm TBO Tek rose nearly 3% on Thursday to Rs 1,733 after brokerage Nuvama initiated coverage with a Buy rating and a Rs 2,200 target price. The brokerage expects a 35% earnings CAGR over FY27-FY29E, driven by international expansion and hotel business growth.
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