BackMarkets likely to be wobbly; Maruti, Bajaj Auto, PNB to report Q1 results
Shares of Tata Motors to be in focus after its loss nearly doubled in June quarterMSCI's broadest index of Asia-Pacific shares outside Japan was down 0.15%
PremiumIndian markets are expected to be wobbly today, bogged down by weak corporate earnings by key companies like Tata Motors. Asian shares opened a tad lower today on mixed US earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.15% while Japan's Nikkei dipped 0.3%.
Wall Street shares fell from record highs on Thursday, with the S&P 500 losing 0.53%, following a flurry of downbeat quarterly results from Ford Motor and other companies.
Back home, shares of Tata Motors Ltd are likely to be in focus on Friday as it has nearly doubled its consolidated net loss in the June quarter, weighed down by woes at its Jaguar Land Rover (JLR) unit and a slowdown in the automobile industry in India. It posted a net loss of ₹3,680 crore in the three months ended 30 June, compared with a year-earlier loss of ₹1,863 crore. Consolidated revenue from operations fell 8% year-on-year (y-o-y) and 29% sequentially to ₹60,830 crore.
TPG Capital’s Indian private equity arm and buyout firm Advent International Corp. are among institutional investors that will infuse fresh capital into Yes Bank Ltd, according to a Mint report.
Key companies which are going to announce June quarter earnings today are Maruti Suzuki India, Bajaj Auto, Punjab National Bank, Vedanta, JSW Steel, ABB India, Vodafone Idea, Bajaj Holdings and Mahindra Lifespace Developers.
Meanwhile, a rally in global bonds ran out of steam after European Central Bank President Mario Draghi cautioned about pulling the trigger too quickly even though he signaled another round of monetary easing.
The 10-year German government bond yield initially hit a record low of minus 0.463% but ended the day up slightly at minus 0.407 percent.
The U.S. 10-year Treasuries yield also rose 3 basis points to 2.079% on Thursday and traded at 2.107% in the following Asian session. Also helping to stem falls in bond yields, new orders for key US-made capital goods surged in June, suggesting some improvement in business investment.
In the currency market, the euro bounced back to at $1.11465 in Asian trade, after sinking to $1.1101 on Thursday, its lowest since May 2017. The yen was little changed against the dollar at 108.67 yen per dollar.
Oil prices held firm on rising tensions between the West and Iran and a big decline in US crude stockpiles, though gains were held in check by worries about slowing growth in major economies.
(Reuters contributed to the story)
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