Mumbai: Stock markets are likely to consolidate further on Monday while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Friday the BSE Sensex ended at 49,206.47, up 256.71 points or 0.52%, and the Nifty closed at 14,823.15, up 98.35 points or 0.67%.
Asian stocks rose on Monday amid speculation that interest rates will remain low due to receding inflationary pressure, while oil and gas prices jumped after a cyber attack on a US pipeline operator unnerved markets.
Australian stocks hit their highest in more than a year, boosted by gains in miners, and shares in China rose 0.46%. Japanese shares gained 0.91%.
US non-farm payrolls data on Friday showed jobs growth unexpectedly slowed in April, which gave equities a lift but put downward pressure on the dollar and US Treasury yields.
On Friday, the Dow Jones Industrial Average and the S&P 500 rose to record closing highs after disappointing data on the U.S. jobs market eased concerns about a spike in consumer prices.
In recent weeks, some investors had been placing bets that a robust US economic recovery from the coronavirus pandemic would force the Federal Reserve to raise interest rates earlier than the central bank has outlined.
However, the weak nonfarm payrolls report caused a rapid reversal in some of these trades, which rippled through stocks, bonds, and major currencies.
The focus now shifts to US consumer price data due on Wednesday, which will help investors determine whether they need to scale back their inflation expectations even further.
MSCI’s broadest index of global stock markets hit a record high on expectations that low rates will continue to spur lending and economic growth.
Back home, Bandhan Bank shares will be in focus, as the lender on Saturday reported an 80% dip in its March quarter net profit at ₹103 crore, as it wrote off a huge portfolio of loans in the flagship microlending business by recognising stress upfront. The bank’s post-tax profit for FY21 also reduced by 27.1% to ₹2,205 crore as a result of the hit to the business in the last quarter.
Two-wheeler market leader Hero MotoCorp on Sunday said it is extending the shutdown of its plants across India by another week till May 16 in view of the prevailing covid-19 situation in the country.
Even, Maruti Suzuki India on Saturday said it has extended maintenance shutdown of its plants till May 16 amid the ongoing surge in covid-19 cases across the country. The company had last month said it was advancing the annual plant maintenance shutdown to 1-9 May, which was originally scheduled for June.
Avenue Supermarts Ltd, which owns and operates retail chain D-Mart, on Saturday reported an increase of 52.56% in its consolidated net profit to ₹413.87 crore for the fourth quarter ended March 2021.
The dollar index against a basket of six major currencies edged up to 90.252 but was still near its weakest since Feb. 25.
The British pound jumped to the highest in more than two months against the greenback, but worries about Scottish independence could curb sterling’s gains, traders said.
The yield on benchmark 10-year Treasury notes steadied at 1.5983% in Asia on Monday after having plunged to a two-month low of 1.4690% on Friday.
Oil and gasoline futures extended gains after a cyber attack shut down a U.S. pipeline operator that provides nearly half of the U.S. east coast’s fuel supply.
U.S. crude ticked up 1.17% to $65.66 a barrel. Brent crude rose to 1.11% to $69.04 per barrel in Asian trading as the disruption to U.S. supplies rattled energy markets.
(Reuters contributed to the story)
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