BackIndian markets may stay firm; BoB, DHFL, Jet shares in focus
Shares of Bank of Baroda (BoB) and Dewan Housing Finance Corp. Ltd (DHFL) are likely to be in focus todayShares of debt-ridden Jet Airways may also be in focus today
PremiumIndian equities may stay firm on Monday as global peers are supportive while domestic investors are waiting for the union budget later this week. Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-US trade dispute averted one threat to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks.
The dollar firmed modestly on the safe-haven yen as Treasury yields rose and futures reined in bets for a half-point rate cut from the US Federal Reserve this month.
The initial reaction was one of relief that new tariffs were avoided and Japan’s Nikkei climbed 1.6% to a two-month top. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%.
Chinese blue chips climbed 2.1% to their highest since late April. E-Mini futures for the S&P 500 rose 0.8% and FTSE futures 0.5%.
Treasury futures slid 10 ticks as yields on 10-year notes edged up 3 basis points to 2.03%.
The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions to his Chinese counterpart Xi Jinping when the two met at the sidelines of the G20 summit in Japan over the weekend. These included no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.
The initial reaction was one of relief that new tariffs were avoided and Japan’s Nikkei climbed 1.6% to a two-month top. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%.
Chinese blue chips climbed 2.1% to their highest since late April.
Back home, shares of Bank of Baroda (BoB) and Dewan Housing Finance Corp. Ltd (DHFL) are likely to be in focus today. BoB has entered into a transaction with DHFL to acquire loans worth ₹3,000 crore against its exposure to the non-bank lender, even as a lenders’ consortium to the stressed non-bank lender considers a resolution plan, according to a Mint report.
Shares of debt-ridden Jet Airways may also be in focus today as media reports suggest that a consortium of diversified conglomerate Hinduja Group & Etihad Airways may bid for the grounded carrier.
Meanwhile, treasury futures slid 10 ticks as yields on 10-year notes edged up 3 basis points to 2.03%.
The reaction in currency markets was to strip some recent gain from safe harbors like the yen and Swiss franc. The dollar crept up 0.2% on the yen to 108.15 and gained 0.4% on the franc to 0.9801. The dollar added 0.2% on a basket of currencies to 96.355, but was little changed on the euro at $1.1355. The dollar dipped 0.3% on the Chinese yuan to 6.8432. The dollar’s gains took some of the shine off gold, which fell 1.2% to $1,392.86 per ounce.
Oil prices sprang higher on news OPEC and its allies look set to extend supply cuts at least until the end of 2019 as Iraq joined top producers Saudi Arabia and Russia in endorsing the policy.
Brent crude futures rose $1.27 to $66.01, while US crude gained $1.19 to $59.66 a barrel.
(Reuters contributed to the story)
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