Markets likely to be volatile; Mindtree, HCL Tech, Tata group shares in focus2 min read . Updated: 16 Oct 2020, 08:39 AM IST
- Asian stocks were under pressure on Friday as investors sought safe havens, such as the US dollar, fearing that a resurgence in coronavirus cases and a lack of additional U.S. fiscal stimulus
MUMBAI: Markets are likely to be volatile on Friday while trends in SGX Nifty suggest a flat opening for benchmark indices. On Thursday, the BSE Sensex ended at 39,728.41, down 1,066.33 points or 2.61%, while the Nifty closed at 11,680.35, down 290.70 points or 2.43%.
Asian stocks were under pressure on Friday as investors sought safe havens, such as the US dollar, fearing that a resurgence in coronavirus cases and a lack of additional US fiscal stimulus would hobble the world economy.
US President Donald Trump's offer on Thursday to raise the size of a fiscal stimulus package to win the support of Republicans and Democrats helped narrow Wall Street losses, though many investors still believe a deal is unlikely before the 3 November election.
Back home, Mindtree Ltd's shares will be in focus as the company posted an 88% year-on-year rise in net profit to ₹253.7 crore for the second quarter-ended September on the back of operational efficiencies and improved utilization. On a sequential basis, the net profit was up 19.1% from ₹213 crore in the previous quarter.
Tata group companies will be eyed as Tata Sons Ltd on Thursday said it is yet to receive a formal notice of separation from the Shapoorji Pallonji (SP) Group, which recently decided to end its 70-year association with the Tatas following protracted acrimony. In a statement, the Tata group holding company indicated the planned separation will likely be a court-monitored process.
Federal Bank, HCL Technologies, Bajaj Consumer Care, Shoppers Stop and Tata Communications are expected to announce their September quarter results today.
Meanwhile, Amazon.com Inc.’s legal challenge to void Future Group’s ₹24,700 crore asset sale to Reliance Industries Ltd hinges on a clause in the e-commerce giant’s 2019 investment agreement in Future Coupons Ltd that explicitly bars the Kishore Biyani-led group from forging a pact with the Mukesh Ambani company, according to a Mint report.
Safe-haven demand due to signs of a stalling US economy drove the dollar index 0.398% higher after touching a two-week high of 93.91, while the Japanese yen strengthened 0.08% versus the greenback at 105.38 per dollar.
The euro was down 0.01% to $1.1705, while a firmer US dollar dragged on sterling, which was last trading at $1.2902, down 0.09% on the day.
Spot gold was little changed at $1,908.07 an ounce.
Brexit talks continued as the European Union put the onus on Britain on Thursday to compromise on their new economic partnership or stand ready for trade disruptions in less than 80 days.
Oil prices were weighed by concerns about the coronavirus and its impact on the world economy. Brent crude futures dropped 16 cents to settle at $43.16 a barrel, while US West Texas Intermediate crude futures slipped 8 cents to settle at $40.96 a barrel.
Traders' preference for safety helped government bonds. The yield on U.S. Treasuries Benchmark 10-year notes US10YTwas last 0.7306% from 0.734%.
(Reuters contributed to the story)