PremiumMUMBAI: Markets are likely to be volatile on Friday, while trends in SGX Nifty indicated a slow start of Indian benchmark indices. On Thursday, the BSE Sensex ended at 52,837.21, up 638.70 points or 1.22%. The Nifty ended at 15,824.05, up 191.95 points or 1.23%.
Asian stocks made a cautious start Friday after US shares edged toward an all-time high and treasuries climbed as traders digested some mixed economic data and the latest spate of earnings.
Equities fluctuated in South Korea and dipped in Australia. Japan is shut for a holiday. US futures rose after the S&P 500’s biggest three-day advance since April took it nearer a new peak, while the Nasdaq 100 closed at a record.
Longer-term treasuries snapped a two-day drop and strong demand for an auction of 10-year inflation-protected securities produced a record-low yield.
Global stocks are on course for a modest weekly gain, bolstered by generally robust corporate earnings and stimulus support. At the same time, July’s decline in 10-year US Treasury yields may for some signal concern that economic growth could be peaking, in part as the delta coronavirus strain forces mobility curbs in some countries.
The latest US economic reports were mixed, showing sales of previously owned homes rose for the first time in five months, while jobless claims unexpectedly climbed.
Among key companies, Reliance Industries, JSW Steel, SBI Cards and Payment Services, Ambuja Cements, United Spirits, Yes Bank, Crompton Greaves Consumer Electricals and Federal Bank will announce June quarterly results today.
The Department of Telecom is awaiting the details of investors from Vodafone Idea for clearing the telco's ₹15,000 crore foreign direct investment proposal, according to reports. Debt-ridden Vodafone Idea (Vi) has sought government approval to raise ₹15,000 crore to fund its operations in the country.
The Competition Commission of India (CCI) has issued a show-cause notice to Amazon.com Inc., seeking to know why certain facts were not disclosed about its 2019 purchase of a 49% stake in a Future Group entity. The competition watchdog’s notice comes as Amazon, armed with a favourable arbitration award, is fighting a legal battle in India and overseas to restrain Future Retail Ltd from selling its assets to rival Reliance Retail Ltd for ₹24,713 crore.
In primary markets, shares of food delivery unicorn Zomato Ltd will make stock markets debut. The issue closed with a subscription of 40.4 times with a price band at ₹72-76 per share.
Meanwhile, the Summer Olympics officially begin in Tokyo, though for the first time in history events will be held without spectators due to covid-19 restrictions. In the US, a recent rise in infections shows no signs of abating as the delta variant spreads through unvaccinated sections of the population.
Elsewhere, oil held around the highest in a week amid expectations of tightening supplies.
(Bloomberg contributed to the story)
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