Home >Markets >Stock Markets >Markets likely to edge higher; TCS in focus ahead of Q3 results

Markets are likely to edged higher on Friday tracking firm global cues. Trends in SGX Nifty also suggest a steady opening for the Indian benchmark share indices. On Thursday the BSE Sensex ended at 48,093.32, down 80.74 points or 0.17%. The Nifty closed at 14,137.35, down 8.90 points or 0.06%.

Asian stocks opened higher on Friday, with Japan hitting a three-decade high as investors looked beyond rising coronavirus cases and political unrest in the United States and bet on an economic recovery later in the year.

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The broadly upbeat mood came after Wall Street hit record highs on Thursday while bond prices fell as markets bet a new Democrat-controlled government would lead to heavy spending and borrowing to support the US economic recovery.

US government officials have begun weighing removing President Donald Trump from office before President-Elect Joe Biden’s inauguration date of 20 January after he incited a violent riot against at the US Capitol building.

On Thursday, the Dow Jones Industrial Average rose 0.69%, the S&P 500 gained 1.48% and the Nasdaq Composite added 2.56%. MSCI’s gauge of stocks across the globe gained 1.18%.

Shares of TCS will be in focus today ahead of its December quarter results. Analysts expect robust constant currency revenue growth of 2.6% quarter-on-quarter led by continuing investments in operational resiliency, cloud shift and ramp-up of certain large deals. Analysts at Kotak Institutional Equities forecast EBIT margin decline of 90 basis points resulting from wage revision rolled out effective 1 October.

Indian IT companies are set to report a firm December quarter earnings despite seasonal weakness and initial fear about extended furloughs post strong Q2.

Vodafone Idea Ltd (Vi) on Thursday sought a direction from the Supreme Court asking the department of telecommunications (DoT) to recalculate adjusted gross revenue (AGR) dues to be paid by the telecom operator, according to a Mint report.

With the covid-19 vaccination drive expected to start next week, Indian airlines, among the worst-stricken by the pandemic, are gearing up to deliver millions of doses of the shots aimed at ending the pandemic. A civil aviation ministry official said both Air India and private airlines are coordinating the logistics with the vaccine producers. Airlines will use their cargo facilities to distribute the vaccines, according to a Mint report.

The Indian economy is projected to contract by a record 7.7% in the year ending 31 March, the first time in more than four decades, the National Statistical Office said in its first advance estimate on Thursday.

Benchmark yields hit their highest level in 10 months as U.S Treasuries continued to sell off. Benchmark 10-year notes last fell 12/32 in price to yield 1.0812%. The 30-year bond last fell 27/32 in price to yield 1.859%.

The dollar also strengthened on hopes of a meaningful economic recovery later this year.

The dollar index rose 0.53% against a basket of currencies to 89.785 with the euro down 0.43% to $1.2272.

Bitcoin topped $40,000 for the first time on Thursday, as the digital currency continued to be in high demand from institutional and retail investors alike. Bitcoin was last up 6.1% at $39,100 but market watchers say a pull back is likely.

Strength in the dollar weighed on gold prices.

Spot gold fell 0.3% to $1,913.87 per ounce but U.S. gold futures inched 0.3% higher to settle at $1,913.60.

Oil traders continued to focus on Saudi Arabia’s pledge to deepen production cuts.

Brent crude settled up 8 cents to $54.38 a barrel after touching $54.90, a high not seen since before the first covid-19 lockdowns in the West. U.S. West Texas Intermediate (WTI) settled up 20 cents to $50.83, after hitting a session high at $51.28.

(Reuters contributed to the story)

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