Markets are likely to remain higher; Bharti, Hero Motocorp, bank shares in the picture

Shares were mixed on Friday as risks to the global recovery from China and the prospect of reduced Federal Reserve stimulus measures dampened sentiment. Iron ore was heading for a weekly record drop.

Shares rose in Japan and fluctuated in Hong Kong and China, as traders monitor Beijing’s crackdown as well as the fallout from the debt crisis at China Evergrande Group. Miners undermined Australian stocks amid the iron ore withdrawal on China’s pressure to curb its steel industry.

S&P 500 and Nasdaq 100 futures fell. US stocks typically closed lower after toggling gains and losses ahead of the quarterly expiration of options and futures on Friday, which could lead to volatility.

Telecom dispute settlement body TDSAT suspended the telecom department’s claim on Thursday 1,376 crore from Bharti Airtel in unpaid overdue dues owed to telco Videocon Telecommunications. The contribution was from Videocon Telecommunications, whose spectrum was acquired in 2016 by the Sunil Mittal-led airline. And so, after a Supreme Court ruling last year on adjusted gross revenue (AGR), the Department of Telecommunications (DoT) asked Airtel to pay the dues that arose on that spectrum.

Hero MotoCorp announced on Thursday that it would increase the prices of its motorcycles and scooters effective Monday, September 20. Hero MotoCorp has attributed the decision to raise prices to the rise in commodity prices. Hero MotoCorp motorcycles and scooters will be more expensive to buy from Monday, up to 3,000.

The government wants to get rid of 2 trillion in bad loans over the next five years and anticipated Guarantee of 30,600 crore to cover security certificates issued by the newly established National Asset Reconstruction Company Ltd (NARCL) against the stressed assets.

Treasury and dollar yields remained higher after the surprising strength of US retail sales, alleviating concerns fueled by delta pressures and the reason for the Fed to roll back its ultra-loose policy. Unemployment claims rose, probably reflecting volatility in weekly data as the labor market recovers globally.

Global equities are on track for a second weekly decline, limited by the impact of delta pressures on economic reopening, the implications of increased inflation and the upheavals in China. The Fed’s policy meeting next week is another potential source of volatility as traders await more clues about the timeline for tapering bond purchases and ultimately raising interest rates.

Oil was stable, while the losing streak of iron ore threatens to push futures down below $100 a tonne. Gold cut off a drop. A commodity price index has fallen, but remains in sight of a record hit in 2011, underlining inflation concerns rippling through the global economy.

(Bloomberg contributed to the story)