Stocks fell on Thursday as central banks around the world hiked interest rates to fight inflation. Central banks in Europe and Asia raised interest rates a day after the Federal Reserve made another big rate hike and indicated that more were on the way.
Piramal Enterprises stock soars ahead of ₹750 cr fundraising proposal meet. Should you buy?
Conglomerate Piramal Enterprises witnessed a bull run on Thursday ahead of its board of directors meeting to consider a fundraising proposal to the tune of ₹750 crore on private placements. Piramal shares climbed more than 2.5% during the day. Analysts at Emkay Global have given a ‘buy’ rating on Piramal shares as they expect the company’s loan book to almost double to ₹1.21 lakh crore by FY27E at a CAGR of 15%. Post the de-merger of its pharmaceutical business, the NBFC has a presence across both retail and wholesale financing and assets under management (AUM) of ₹645.9 billion. (Read More)
Gold’s decadal returns among the worst in history
Gold has had a difficult decade. With a return of just 3.4% in rupee terms in the 10 years ending 16 August,gold investors have been unable to even beat inflation. This is highly unusual for the precious metal. A Mint analysis of 10-year rolling returns for gold (based on WorldGoldCouncil price data) shows it has delivered a 10-year return lower than 3.4% CAGR only 3% of the time if you look at data starting 1979-89.
With a return of just 3.4% in rupee terms in the 10 years ending 16 August, gold investors have been unable to even beat inflation. (Read More)
Bank of England raises rates but avoids bolder hike like Fed
The Bank of England raised its key interest rate Thursday by another half-percentage point to the highest level in 14 years, but despite facing inflation that outpaces other major economies, it avoided more aggressive hikes made by the U.S. Federal Reserve and other central banks.
It is the Bank of England’s seventh straight move to increase borrowing costs as rising food and energy prices fuel a cost-of-living crisis that is considered the worst in a generation. Despite facing a slumping currency, tight labor market and inflation near its highest level in four decades, officials held off on acting more boldly as they predicted a second consecutive drop in economic output this quarter, an informal definition of recession. (AP)
Air India in sale, leaseback deal for 34 engines with US-based Willis Lease Finance
Air India has signed a sale and leaseback agreement with US-based Willis Lease Finance Corp for 34 engines to power 17 aircraft of the Airbus A320 family.
Under the agreement, Willis Lease will purchase from Air India 34 CFM56-5B engines to power 13 Airbus A321 aircraft and 4 Airbus A320 airplanes and lease them back to the airline. Willis Lease will also provide replacement and standby spare engines to Air India as per the agreement.
Rupee tanks 83 paise to close at record low of 80.79 on Fed rate hike
The rupee plunged by 83 paise — its biggest single-day loss in nearly seven months — to close at an all-time low of 80.79 against the US dollar on Thursday after the US Federal Reserve’s interest rate hike and its hawkish stance weighed on investor sentiments.
Forex traders said the US Fed’s rate hike and escalation of geopolitical risk in Ukraine sapped risk appetite.
Moreover, the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off mood and firm crude oil prices weighed on the rupee.
At the interbank foreign exchange market, the local currency opened at 80.27, then fell further to an all-time intra-day low of 80.95 against the American currency. (PTI)
Wall Street ends lower as global central banks raise rates
Stocks fell again Thursday, deepening Wall Street’s losses for the week, as central banks around the world hiked interest rates to fight inflation.
The S&P 500 fell 0.8%, its third straight drop. The benchmark index is down about 3% so far this week.
The Dow Jones Industrial Average fell 0.4% and the Nasdaq composite lost 1.4%. The Russell 2000 index of smaller company stocks fell 2.3%, a sign investors are worried about the economy. The major indexes are on pace for their fifth weekly loss in six weeks.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!