Indian indices may continue record run; Likhitha Infra, Shoppers Stop in focus
Investors will eye purchasing managers index for manufacturing data and auto monthly numbers data due later today
PremiumMUMBAI: Markets on Wednesday may hit a fresh record high in the opening tracking steady Asian equities and gains in SGX Nifty. On Wednesday, the benchmark Sensex rose 1.16% to a fresh record high 57,552.39 points while Nifty hit a fresh all-time high of 17,132.20 points, up 1.19%. The two indices took just 19 trading sessions to scale the latest 1,000 points up move.
Asian stocks were steady Wednesday as traders evaluated the resilience of the global recovery to the delta virus strain and the outlook for central bank stimulus support.
Shares made gains in Japan, fluctuated in South Korea and fell in Australia. US equities edged back from all-time highs amid some mixed data, including a drop in consumer confidence to a six-month low and a record jump in home prices. S&P 500 and Nasdaq 100 futures were little changed.
India’s GDP grew 20.1% in the June quarter, but remained below FY20 levels. Eight core sectors' output grew 9.4% in July mainly due to lower base effects.
"The GDP figures for the first quarter came in marginally weaker than our expectations. However, economic activity has been reviving since July and has picked up momentum. As vaccination pace picks up we expect the momentum to pick up further, although remain wary on the evolution of delta variant cases.", said Upasna Bhardwaj, senior economist, Kotak Mahindra Bank
AU Small Finance Bank's stock was under pressure amid recent top level exits. The SFB clarified on the news around the resignation of Sumit Dhir as head of the bank's internal audit team. The lender said that Dhir remains on company rolls, while its relevant department was in touch with him for a possible retention after he expressed a desire to return to his hometown, Delhi, citing personal reasons. On 29 August, the lender disclosed that Alok Gupta would be leaving his role as chief risk officer.
Departmental store operator Shoppers Stop exited non-core business by selling its subsidiary, Crossword Bookstores at a gross business valuation of ₹41.62 crore and will focus on expanding core business and strategic growth pillars—First Citizen, Private Labels, Beauty and Omnichannel business.
Likhitha Infrastructure stock in the limelight after the firm received order worth ₹145.86 crore from Indradhanush Gas Grid (IGGL) for laying and construction of steel gas pipeline and terminals along with associated facilities for section 5 and 9 of North-East Gas Grid (NEGG) Project.
Investors will eye purchasing managers index for manufacturing data and auto monthly numbers data due later today. The government is also likely to release GST numbers today.
Global markets will turn to an Opec+ meeting due on Wednesday to discuss a further output boost and US Jobs data on Friday.
(Bloomberg contributed to this story)
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