Home >Markets >Stock Markets >Markets likely to consolidate; ICICI Bank, SBI Card, Cadila in focus

Mumbai: Indian equity markets are likely to consolidate on Monday, while SGX Nifty suggests a flat opening for domestic benchmark indices. On Friday, the BSE Sensex slipped 202.22 points or 0.42% to end at 47,878.45. The Nifty dropped 64.80 points or 0.45% before closing at 14,341.35

Asian stocks rose on Monday with Chinese shares near three-week highs as signs the world economic recovery was well on track bolstered risk appetite, while the U.S. dollar slipped to a two-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.3% to reach its highest since 18 March 18.

The index has had a strong run lately as it clocked its second consecutive weekly rise on Friday and was on track for another month of gains. Since April 2020, the index has offered positive returns in all but three months.

Risk appetite was whetted by early April manufacturing activity indicators out last week, which pointed to a robust start to the second-quarter with data hitting record highs in the United States and signalling an end to Europe's double dip recession.

Investors embraced the strong data, shrugging off earlier concerns about potential higher U.S. taxes on capital gains under the Biden administration.

First-quarter U.S. gross domestic product data is due later in the week with expectations activity will have likely returned to pre-pandemic levels.

Back home, ICICI Bank reported strong performance on the business front, with loan growth showing robust trends across retail, SME, and corporate portfolio. Core operating performance remained robust even as muted fee income trends and treasury loss resulted in a net profit miss from estimates.

Shares of HCL Technologies will be in focus as the IT major delivered in-line revenue growth in Q4FY21, led by strong traction in IT services, but partially offset by muted ER&D and a fall in products and platforms due to seasonality and client-specific weakness.

Major companies which will announce their March quarter results today are HDFC Life, SBI Card, Tech Mahindra, Castrol India ans Alok Industries.

India's Cadila Healthcare has started producing its potential Covid-19 vaccine for which it will seek emergency use authorisation in May or June, its managing director told Reuters, with an aim to make up to 240 million doses a year.

Bonds were sold off, though 10-year U.S. Treasury yields were not far from a recent six-week low on expectations the U.S. Federal Reserve will stay accommodative at its meeting this week.

In currencies, Turkey's lira edged lower adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that rate hikes would harm the economy. read more

The U.S. dollar's index slipped to 90.739 against a basket of major currencies, a level not seen since 3 March.

The greenback was a shade weaker on the safe-haven Japanese yen at 107.76. The euro rose 0.1% at $1.2105. The risk sensitive Australian dollar stayed trapped in a narrow band to be last at $0.7762.

In commodities, U.S. crude rose 4 cents to $62.18 per barrel and Brent was flat at $66.11.

Gold climbed 0.1% to $1,778.92 an ounce.

(Reuters contributed to the story)

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