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Markets likely to be volatile; RIL, Future group stocks in focus

On Monday, Wall Street's benchmark S&P 500 index and the Nasdaq extended their run of all-time closing highs to eight straight sessions, while the blue-chip Dow notched its second consecutive record closing high. (REUTERS)Premium
On Monday, Wall Street's benchmark S&P 500 index and the Nasdaq extended their run of all-time closing highs to eight straight sessions, while the blue-chip Dow notched its second consecutive record closing high. (REUTERS)

  • Asian shares followed Wall Street higher in early trade on Tuesday as the passage of a US infrastructure bill boosted sentiment while oil prices gained on the outlook for energy demand in an expansive global economy

MUMBAI : Markets are likely to be volatile on Tuesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Monday, the BSE Sensex ended at 60,545.61, up 477.99 points or 0.80% and the Nifty closed at 18,068.55, up 151.75 points or 0.85%.

Asian shares followed Wall Street higher in early trade on Tuesday as the passage of a US infrastructure bill boosted sentiment while oil prices gained on the outlook for energy demand in an expansive global economy.

The congressional passage of a long-delayed $1 trillion infrastructure bill over the weekend has cheered investors, who however face another test later in the week from a reading on US inflation that may influence plans for tightening monetary policy.

Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%. Japan's Nikkei stock index rose 0.06% while Australian shares were down 0.12%.

On Monday, Wall Street's benchmark S&P 500 index and the Nasdaq extended their run of all-time closing highs to eight straight sessions, while the blue-chip Dow notched its second consecutive record closing high.

As Reliance Industries Ltd (RIL) aims for a net-zero carbon emissions future by 2035, the company is exiting its conventional oil and gas businesses.While RIL sold all its conventional oil and gas exploration blocks outside India in 2017, on Monday it sold the last shale gas asset that it held for nearly 11 years.

A company court restrained Future Group from calling shareholders’ meetings to seek approval for its proposed 24,713 crore asset sale to Reliance Industries Ltd, in a legal setback for the cash-strapped group. Following a hearing on Monday, the National Company Law Tribunal (NCLT) changed its earlier stance by stopping Future Group companies from holding the meetings.

Air India pilots have again written to the management to clear their dues ahead of the transfer of the airline to Tata Group, warning that failure to do so could lead to “mass protest and industrial unrest."The development comes about a fortnight after the Tata Group, the winning bidder for the airline in a divestment process, and the central government signed a share purchase agreement (SPA) for the national carrier.

World shares also rose on Monday after hitting a record high last week as relatively dovish central bank messages and strong US labour data on Friday added to optimism generated by a healthy earnings season on both sides of the Atlantic. But a tight US labour market and the dislocation in global supply chains could result in a high reading for consumer prices on Wednesday. Strong inflation likely would rekindle talk of Federal Reserve raising interest rates earlier than expected.

Traders also sent most US Treasury yields higher on Monday after Congress passed the infrastructure bill on Saturday. The yield on benchmark 10-year Treasury notes touched 1.4862% compared with its US close of 1.497% on Monday.

The dollar index, which tracks the greenback against a basket of six currencies, was up at 94.075.

Oil prices firmed as the passage of the US infrastructure bill and China's export growth supported the outlook for energy demand. Saudi Arabia's state-owned producer Aramco also raised the official selling price for its crude.

US crude ticked up 0.15% to $82.05 a barrel. Brent crude rose to $83.59 per barrel.

Spot gold was slightly lower, trading at $1,823.3 per ounce.

(Reuters contributed to the story)

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