The Indian markets are likely to be wobbly as global markets are under pressure while investors remain nervous ahead of the election results. Asian stocks struggled near a three-month low on Wednesday on lingering concerns over the economic impact of a US-China trade war, although an overnight bounce on Wall Street helped limit the losses.
US stocks on Tuesday reclaimed some of the ground lost in the prior day’s steep sell-off, with tariff-sensitive technology stocks heartened by a slight softening in US-China trade rhetoric. US President Donald Trump on Tuesday said he had a “very good" dialogue with China and insisted talks between the world’s two largest economies had not collapsed.
Back home, key companies like Adani Power, Aditya Birla Fashion, Dalmia Bharat, Lupin and Torrent Power will declare their March quarter results today.
Shares of Yes Bank will be in focus in trade today. The Reserve Bank of India (RBI) has appointed former deputy governor Rama Subramaniam Gandhi as an additional director on the board of Yes Bank for two years, from 14 May 2019 to 13 May 2021, the bank said on Tuesday in a notice to the stock exchanges.
Gandhi’s appointment comes against the backdrop of Yes Bank reporting a loss of ₹1,507 crore for the March quarter, driven by a 9-fold increase in provisions. Rating agencies Icra and India Ratings have both downgraded the long-term ratings of the bank.
Meanwhile, in the currency market, the Chinese yuan stood little changed at 6.9051 per dollar in offshore trade, having edged away from a five-month trough of 6.9200 set on Tuesday. The dollar traded a shade higher at 109.675 yen, pulling away from a three-month low of 109.020 plumbed on Monday when trade war worries boosted investor demand for the safe-haven Japanese currency.
The euro was steady at $1.1202. The common currency had dipped nearly 0.2% the previous day after Italy’s deputy prime minister said the country is ready to break European Union budget rules on debt levels if necessary to spur employment. The dollar index against a basket of six major currencies was nearly flat at 97.534 after gaining 0.2% the previous day.
In commodities, US crude futures were down 1.04% at $61.14 per barrel after the American Petroleum Institute (API) reported a bigger-than-expected build-up in crude oil inventory.
US crude inventories rose by 8.6 million barrels in the week to May 10 to 477.8 million, compared with analysts’ expectations for a decrease of 800,000 barrels. Brent and US crude futures had surged the previous day after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco.
(Reuters contributed to the story)