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Photo: iStock
Photo: iStock

Markets likely to be choppy on global cues; TCS, Maruti in focus

  • Asian stocks perked up on Thursday as investors remained confident that violence in Washington would not disrupt a legitimate transition to a new presidency or derail political support for a US economic recovery.

Indian stocks are likely to be choppy on Thursday amid mixed global cues, while trends in SGX Nifty suggest a firm opening for benchmark share indices. On Wednesday, the Nifty closed at 14,146.25, down 53.25 points or 0.38%. The BSE Sensex ended at 48,174.06, down 263.72 points or 0.54%.

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Asian stocks perked up in early deals as investors remained confident that violence in Washington would not disrupt a legitimate transition to a new presidency or derail political support for a US economic recovery.

Wall Street had given up early gains on Wednesday after supporters of President Donald Trump stormed the legislative building, disrupting the congressional vote to certify the 2020 presidential election results.

However, investors remained defiantly bullish in early Asian trade with S&P 500 futures up 0.3%, Japan’s Nikkei 225 rising 1.24% and the S&P/ASX 200 1.25% higher.

Supporting sentiment were Democratic wins in two closely watched US Senate runoff elections in the state of Georgia on Wednesday, which swung the balance of power in President elect Joe Biden’s favor. Despite earlier worries about the economic risks of a “blue sweep", expectations for a large fiscal stimulus package in early 2021 are now pushing markets higher.

World leaders quickly chimed in to condemn the riots, but also affirmed their trust in US institutions.

Private lender Bandhan Bank on Wednesday said its loans and advances grew by 23% year-on-year to 80,255 crore during the third quarter of the current fiscal. The advances were at 65,456 crore in the year-ago period, it said.

Maruti Suzuki India, the country's largest carmaker, on Wednesday said its total production in December 2020 increased 33.78% to 1,55,127 units. The company had produced a total 1,15,949 units in the same month of 2019, Maruti Suzuki India (MSI) said in a regulatory filing.

Tata Sons tendered shares worth 9,997 crore of Tata Consultancy Services (TCS) during the IT major's 16,000 crore-buyback offer that concluded recently. The single largest shareholder of TCS, Tata Sons tendered more than 3.33 crore shares during the offer.

Bond yields jumped in anticipation of a larger stimulus package. Benchmark 10-year notes last fell 24/32 in price to yield 1.0355%, from 0.955% late on Tuesday.

The dollar index inched 0.086% lower after sinking to its lowest level in nearly three years, with the euro up 0.27% to $1.2327.

Oil prices were higher, following Saudi Arabia’s decision to voluntarily cut production and on a drop in US crude inventories. Brent crude settled up 1.3%, at $54.30 a barrel, while U.S. crude futures settled 1.4% higher at $50.63.

Spot gold dropped 1.6% to $1,918.06 an ounce.

(Reuters contributed to the story)

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