Home / Markets / Stock Markets /  Markets likely to be volatile; L&T, IDBI Bank, Shree Cements in focus

MUMBAI: Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a soft opening of Indian benchmark indices. On Friday, the BSE Sensex ended at 54,277.72, down 215.12 points or 0.39%. The Nifty was at 16,238.20, down 56.40 points or 0.35%.

Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar held near four-month highs after an upbeat US jobs report lifted bond yields.

Sentiment was shaken by a sudden dive in gold as a break of $1,750 triggered stop loss sales taking it as low as $1,684 an ounce . It was last down 2.2% at $1,723.

Brent sank almost 2% on concerns the spread of the Delta variant would temper travel demand.

Holidays in Tokyo and Singapore made for thin trading conditions, leaving MSCI's broadest index of Asia-Pacific shares outside Japan down 0.1%. Japan's Nikkei was shut but futures were trading just below Friday's close. Nasdaq futures slipped 0.5% and S&P 500 futures 0.3%.

The US Senate was closer to passing a $1 trillion infrastructure package, though a single Republican lawmaker was holding up a vote on Sunday.

Investors were still assessing whether Friday's strong US payrolls report would take the Federal Reserve 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 hike came, he said. The Fed is currently buying $120 billion of assets a month, so a $20 billion taper would end the programme in six months whilst a $10 billion tapering approach would take a year.

The spread of the Delta variant could argue for a longer taper with US cases back to levels seen in last winter's surge with more than 66,000 people hospitalised.

Among key companies Shree Cements, MRF, Gujarat State Petronet, Clean Science & Technology, Indian Hotels Company, AstraZeneca Pharma India, Balrampur Chini Mills and Tata Investment Corporation will announce June quarter earnings today.

As many as seven firms, including JM Financial, Ernst and Young and Deloitte, have bid for managing the strategic sale of IDBI Bank. These firms would make a virtual presentation before the Department of Investment and Public Asset Management, which is handling the sale process, on August 10, according to a notice by Dipam.

L&T has received shareholders' nod to raise up to 4,500 crore through issuance of convertible bonds, according to a regulatory filing. The shareholders' approval was given at the company's annual general meeting (AGM) held on Thursday, L&T said in the BSE filing on Friday.

In primary markets, shares of Rolex Rings will make stock markets debut. The 731 crore initial public offering (IPO) was subscribed 130.44 times subscription during 28-30 July.

Yields on US 10-year notes were up at 1.30% in the wake of the jobs report, having hit their lowest since February last week at 1.177%.

That jump gave the dollar a broad lift and knocked the euro back to $1.1744 , its lowest since April. The dollar likewise climbed to 110.28 yen and away from last week's trough of 108.71. That took the U.S. currency index up to 92.882 and nearer to the July peak of 93.194.

Oil prices eased further after suffering their largest weekly drop in four months amid worries coronavirus travel restrictions would threaten bullish expectations for demand.

Brent fell $1.30 to $69.40 a barrel, while U.S. crude lost $1.29 to $66.99.

(Reuters contributed to the story)

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