Asian stocks began cautiously as markets anticipate potential rate cuts from the U.S. Federal Reserve and possibly the Bank of Canada this week. Investors are closely watching the Fed's future guidance amid economic concerns and President Trump's criticism. China's economic data and U.S.-China trade talks are also key factors influencing market sentiment, alongside oil price fluctuations and gold's near-record highs.
U.S. and Chinese officials met in Madrid to discuss strained trade ties, TikTok's divestiture deadline, and U.S. demands for tariffs on countries buying Russian oil. Experts anticipate a TikTok deadline extension, with substantial breakthroughs unlikely without a Trump-Xi meeting. The U.S. is pressuring China and India to reduce Russian oil purchases through tariffs, while China seeks eased export controls.
China's shift towards yuan appreciation is poised to boost emerging-market currencies, fueled by expectations of lower US interest rates. The yuan's influence as a regional anchor and its impact on trade flows extend beyond Asia. This policy change signals a departure from maintaining yuan stability, potentially easing central bank policies and benefiting the broader emerging market space.
Aavas Financiers' stock is recovering after a subdued June quarter, fueled by expectations of improved loan disbursement and attractive valuation. Despite a change in disbursement recognition policy impacting AUM growth, the company anticipates double-digit growth, driven by branch expansion and controlled credit costs. Analysts have revised target prices, with some upgrading their ratings on the stock.
Nifty 50 is set to climb towards 25,500. Market breadth is improving. Analysts suggest buying on dips, with support at 24,700. BFSI, auto, consumption, and metals sectors are likely to outperform. IT and infrastructure sectors present bargain-buying chances. Stocks like SBI, Axis Bank, TCS, and Maruti could see gains. Railtel and Persistent Systems also look promising for investors.
Infosys has announced a mega share buyback. This has brought cheer to the stock market. New tax rules apply to this buyback. Individual shareholders now pay tax on the entire buyback amount. This is treated as dividend income. TDS applies. Investors can record capital loss. This can be set off against capital gains.
The FAA is seeking $3.1 million in fines from Boeing for safety violations occurring between September 2023 and February 2024, including those related to the Alaska Airlines door plug incident. The FAA identified hundreds of quality system violations at Boeing's 737 factory and Spirit AeroSystems' factory.
