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Markets likely to be steady on global cues; BPCL, Avenue Supermarts in focus

Markets closed over 0.24% lower on Friday. The BSE Sensex ended at 52,386.1, down 182.75 points or 0.35%. The Nifty closed at 15,689.80, down 38.10 points or 0.24%. (Mint)Premium
Markets closed over 0.24% lower on Friday. The BSE Sensex ended at 52,386.1, down 182.75 points or 0.35%. The Nifty closed at 15,689.80, down 38.10 points or 0.24%. (Mint)

  • Plans to allow Bharat Petroleum Corporation Ltd (BPCL) to continue selling subsidised cooking gas (LPG) after its privatisation have been stymied by a two-decade-old LPG supply order restricting supply of domestically produced LPG to only state-owned oil companies

MUMBAI: Markets are likely to be steady on Monday following global peers, while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Friday, the BSE Sensex ended at 52,386.1, down 182.75 points or 0.35%. The Nifty closed at 15,689.80, down 38.10 points or 0.24%.

Asian shares were enjoying a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week.

In the US, inflation data could provide a scare ahead of testimony by Federal Reserve Chair Jerome Powell on Wednesday and Thursday, where markets will be hyper-sensitive to any talk of early tapering.

China releases figures on economic growth, trade, retail sales and industrial output amid concerns they could underwhelm given the sudden easing in policy last week.

For now, investors were happy that last week's burst of bearishness had swung around in New York, sending wall Street higher and tempering the bull run in bonds.

Early Monday, MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%, after shedding 2.3% last week.

Japan's Nikkei bounced 1.9%, and away from a two-month trough touched on Friday, while South Korea added 0.6%. Nasdaq futures rose 0.1% and S&P 500 futures were a fraction firmer.

SBI Funds Management (SBI MF) will distribute the fifth tranche of 3,303 crore to unitholders of Franklin Templeton Mutual Fund's six shuttered schemes during the week beginning Monday. With this, the total disbursement will reach 21,080 crore, amounting to 84 per cent of assets under management (AUM) as on April 23, 2020, according to a PTI report.

A two-decade-old LPG supply order restricting supply of domestically produced LPG to only state-owned oil companies has stymied plans to allow Bharat Petroleum Corporation Ltd (BPCL) to continue selling subsidised cooking gas (LPG) after its privatisation. A legal opinion has now been sought to ascertain if privatised BPCL will be eligible to receive liquefied petroleum gas (LPG) produced by companies such as ONGC and GAIL, a PTI report said.

Avenue Supermarts Ltd, which owns and operates retail chain DMart, on Saturday reported over two-fold jump in consolidated net profit at 95.36 crore for June quarter. Revenue from operations was up at 5,183.12 crore during the quarter under review as against 3,883.18 crore in the year-ago period, said Avenue Supermarts in a BSE filing.

Yields on US 10-year notes were steady at 1.365%, having been as low as 1.25% on Friday following eight straight sessions of price gains.

That bout of risk aversion had also supported the safe haven US dollar, until it ran into some profit taking on Friday. It was last at 92.147 on a basket of currencies, after touching a three-month top of 92.844 last week.

The safe haven yen also lost some ground to 110.18 per dollar , while the euro firmed to $1.1871 from last week's low at $1.1780.

European Central Bank president Christine Lagarde caught markets by surprise on Monday saying the bank will change its guidance on policy at its next meeting and show it is serious about reviving inflation. read more

The ECB's new strategy allows it to tolerate inflation higher than its 2% goal when rates are near rock bottom.

The general risk-off mood helped gold higher last week and it was trading at $1,806 an ounce compared to its June trough of $1,749.

Oil prices steadied on Monday after ending a volatile week with a bounce as U.S. inventories tightened. Dealers are still uncertain about the outlook for supplies after OPEC talks on restrictions broke down.

Brent was last up 6 cents at $75.61 a barrel, while U.S. crude stood unchanged at $74.56.

(Reuters contributed to the story)

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