Global sell-off may drag Indian markets; Future Retail, Maruti, Vodafone in focus2 min read . Updated: 29 Oct 2020, 08:17 AM IST
- Asian stocks joined a global sell-off on Thursday as worries about surging coronavirus cases in Europe and the United States sent investors scrambling for safe-haven assets
Indian equities are likely to be under pressure on Thursday following weakness in global peers. SGX Nifty trends also suggest a negative opening for the benchmark share indices. On Wednesday, the BSE Sensex ended at 39,922.46, down 599.64 or 1.48%. The Nifty closed at 11,729.60, down 159.80 points or 1.34%.
Asian stocks joined a global sell-off as worries about surging coronavirus cases in Europe and the United States sent investors scrambling for safe-haven assets.
Surging coronavirus cases in the United States and Europe were a growing concern as French and German leaders announced new lockdown measures to combat rising infections. Worsening matters for investor enthusiasm were dwindling hopes for any imminent U.S. economic relief package with a presidential election less than a week away.
US and European stocks faced a brutal trading day on Wednesday with major Wall Street indices down 3% and the Dow at its lowest levels since late July. Energy and technology stocks led the declines.
Wall Street's "fear gauge" is on pace for its biggest weekly jump since March, when the pandemic took off in the United States. The CBOEVolatility Index surged on Wednesday to its highest level since June, ending at 40.28.
Among top companies, Maruti Suzuki, BPCL, InterGlobe Aviation, IDBI Bank, Vodafone Idea, TVS Motor and Bank of Baroda will report their September quarter results.
Hero MotoCorp on Wednesday reported a 9.05% rise in consolidated net profit to ₹963.82 crore for the September quarter on the back of robust sales. Revenue from operations rose to ₹9,473.32 crore during the second quarter, as against ₹7,660.60 crore in the year-ago period.
Amazon.com Inc., which won interim relief against Future group in a Singapore court, is likely to move an Indian high court by next week to enforce the verdict if Future declines to pursue arbitration proceedings in the city-state, according to a Mint report.
Yes Bank on Wednesday said that Swaminathan Janakiraman, the nominee director appointed by State Bank of India, has resigned with effect from October 28, 2020.
Private sector lender Axis Bank on Wednesday reported a net profit of ₹1,682.67 crore in the September quarter of FY21, as against a loss of ₹112 crore in the same period last year, owing to lower tax outgo.
Oil also took a big hit on Thursday, falling over 5% to a four-month low as coronavirus concerns weighed on demand expectations. Brent LCOc1 futures fell $2.08, or 5.1%, to settle at $39.12 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.18, or 5.5%, to $37.39.
Investors seeking a safe-haven moved into the greenback with the dollar index rising 0.3% against a basket of six currencies.
The flow to the dollars weighed on gold with the yellow metal settling down 1.56% at $1,877.06 per ounce, after falling as much as 2% on Wednesday.
Benchmark 10-year notes last rose 1/32 in price to yield 0.7743%.
(Reuters contributed to the story)