BackMarkets likely to be under pressure; Zomato, PowerGrid, Future in focus
Among key companies Power Grid Corporation, Zomato, Coal India, Siemens, Motherson Sumi Systems, Lupin, Jindal Steel & Power, Max Financial Services, Trent, Max Healthcare Institute, Whirlpool of India, Manappuram Finance and Computer Age Management Services will announce June quarter earnings today
PremiumMUMBAI: Markets are likely to be under pressure on Tuesday while SGX Nifty trends suggest a negative opening. On Monday, the BSE Sensex ended at 54,402.85, up 125.13 points or 0.23%. The Nifty was at 16,258.25, up 20.05 points or 0.12%.
Asian stocks started off on a weak footing on Tuesday after a largely soft performance on Wall Street and as persistent concerns over the spread of the Delta variant of the coronavirus dented sentiment and triggered falls in metals and oil prices.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.4% in early trading, with Korea’s Kospi index down 0.56% while China’s blue chip index CSI300 shed 0.33%.
Japan’s Nikkei was UP 0.9% while Australia’s benchmark S&P/ASX200 was 0.2% higher on the back of strong earnings results.
Among key companies Power Grid Corporation, Zomato, Coal India, Siemens, Motherson Sumi Systems, Lupin, Jindal Steel & Power, Max Financial Services, Trent, Max Healthcare Institute, Whirlpool of India, Manappuram Finance and Computer Age Management Services will announce June quarter earnings today.
Amazon.com Inc. is preparing a bailout plan for cash-strapped Future Retail if the Singapore International Arbitration Centre (SIAC) rules against a planned takeover of the Indian retail chain by Reliance Industries Ltd (RIL), according to a Mint report.
Domestic air passenger traffic rose steeply for the second consecutive week, as a fall in covid-19 cases, lower fares, and the easing of curbs by most states encouraged more people to take to the skies. Average number of daily fliers rose to 227,000 in the week ended 7 August from 165,000 a week before, broking firm ICICI Securities said in a report on Monday.
Oil prices were recovering on Tuesday after falling as much as 4% in the previous session, which extended last week’s steep losses amid a rising US dollar and concerns that new coronavirus-related restrictions in China could slow a global revival in fuel demand.
US crude oil futures were trading at $66.82 per barrel, up $0.35 or 0.53%. Brent crude was at $69.29, up $0.25 or 0.36% higher.
Gold stabilised after falling to a more than four-month low on Monday as strong US jobs data bolstered expectations for an early tapering of the Federal Reserve’s economic support measures.
Spot gold was fetching $1,732.13 an ounce, up 0.16%.
The strong jobs data lifted US Treasury yields. Benchmark 10-year notes were last yielding 1.3237%, up from 1.3170% on Monday.
US stock indexes were mostly soft, with the Dow Jones Industrial Average down 0.3%, the S&P 500 off 0.09% while the Nasdaq Composite added 0.16%. MSCI’s gauge of stocks across the globe were 0.03% lower.
In the US, the Senate came closer to passing a $1 trillion infrastructure package, though it still has to go through the House.
Investors were still assessing whether Friday’s strong US payrolls report would take the Fed a step nearer to winding back its stimulus.
However, the pace of tapering was still up in the air and would decide when an actual rate increase comes, he said. The Fed is currently buying $120 billion of assets a month.
The spread of the Delta variant could argue for a longer taper.
In the currency markets, the dollar index moved 0.02% higher, with the euro off 0.03% to $1.1732, its lowest since early April. The dollar held firm against the yen at 110.38 yen, near its highest level in about two weeks.
The US currency’s broad rally came as US Treasury yields spiked to three-week highs on the back of the strong jobs data and early Fed taper speculation.
(Reuters contributed to the story)
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