Markets likely to stay firm; BPCL, DHFL, Reliance in focus2 min read . Updated: 17 Nov 2020, 08:16 AM IST
- Asian stocks were mostly firm on Tuesday after the S&P 500 and Dow Jones indexes hit record highs on news of another promising coronavirus vaccine, which supported hopes of a quicker economic recovery
MUMBAI: Markets are likely to rise on Tuesday following firm global cues. Trends in SGX Nifty indicate a positive opening of Indian benchmark indices. In the short Mahurat trading session on Saturday, Sensex closed at 43,637.98, up 194.98 points or 0.45% and the Nifty ended at 12,780.25, up.60.30 points or 0.47%.
Asian stocks were mostly firm on Tuesday after the S&P 500 and Dow Jones hit record highs on news of another promising coronavirus vaccine, which supported hopes of a quicker economic recovery.
Investor sentiment shot up after Moderna Inc said its experimental Covid-19 vaccine was 94.5% effective in preventing infection based on interim late-state data.
The Cambridge, Massachusetts-based firm became the second drugmaker, after Pfizer Inc, to announce promising trial data in the development of a vaccine to defeat the pandemic. Its shares gained 9.6% on the day.
All three main Wall Street indexes advanced on Monday, with the Dow Jones Industrials Average setting a record as it neared the 30,000 mark for the first time in nine months. The benchmark Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall. The S&P 500 surpassed its own record set on Friday.
Back home, Dewan Housing Finance Corp. Ltd (DHFL) will be in focus as its lenders are likely to call for fresh bids for the bankrupt home financier as early as Tuesday after the Adani group unexpectedly offered a higher price for the company’s assets, according to a Mint report.
The government on Monday received 'multiple' bids for buying out its stake in India's second-biggest fuel retailer BPCL but billionaire Mukesh Ambani's Reliance Industries as well as supermajors Saudi Aramco, BP and Total did not make a bid.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd (RIL), has acquired equity shares of online furniture startup Urban Ladder Home Decor Solutions Pvt Ltd for ₹182.12 crore.RRVL has bought 96% holding in the equity share capital of Urban Ladder.
Automakers such as Tata Motors Ltd and Toyota Kirloskar Motors Pvt. Ltd have reported robust growth in bookings and retail deliveries during the Dhanteras festival this year compared to last year.
Meanwhile, oil prices rose on the prospects of an end of pandemic restrictions that have hit demand. Prices were also buoyed by data showing a rebound in China and Japan, with figures showing Chinese refineries processed record daily levels of crude in October.
US crude settled up 3.02% at $41.34 per barrel and Brent was at $43.82, up 2.43% on the day.
US Treasury yields rose on Monday and the yield curve steepened in the wake of the vaccine developments. Benchmark 10-year notes last fell 5/32 in price to yield 0.9094%, from 0.893% late on Friday.
(Reuters contributed to the story)