Markets likely to stay firm on global triggers; RIL, DLF in focus
Japan’s Nikkei inched up 0.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2%, though trade is slow with many markets still closed for holiday.
Markets are likely to be firm on Monday following positive global triggers. Trends in SGX Nifty also suggest a steady opening of Indian benchmark share indices. On Thursday, the BSE Sensex ended at 46,973.54, up 529.36 points or 1.14% and the Nifty closed at 13,749.25, up 148.15 points or 1.09%.
Global shares ticked up in early deals as reports suggest that US President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package he had until now refused to sign.
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Japan’s Nikkei inched up 0.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2%, though trade is slow with many markets still closed for holiday.
Trump had refused to sign into law the pandemic aid and spending package that the Congress has passed, demanding stimulus checks for struggling Americans be increased. Trump’s threat to not sign the package had already shuttered an emergency unemployment aid programme and threatened a partial federal government shutdown at midnight on Monday.
As the UK and European reached a post-Brexit agreement, a major overhang for equity markets worldwide including India is removed. However most of the positive implications of the historic trade agreement is seemed to be already factored in markets.
Reliance Industries Ltd (RIL) has entered into a definitive agreement to acquire 50% shares held by IMG Singapore Pte. Ltd in IMG-Reliance Ltd, for a cash consideration not exceeding ₹52.08 crore, the company said in a regulatory filing.
Real estate firm DLF Ltd’s rental arm DLF Cyber City Developers Ltd (DCCDL) will raise ₹400-500 crore of debt and another ₹200-300 crore from internal accruals to buy a majority stake in One Horizon Center in Gurugram.
The flurry of bids and counterbids for Dewan Housing Finance Corp. Ltd (DHFL) continued with Piramal Capital and Housing Finance Ltd sweetening its offer to top rival Oaktree Capital’s bid.
U.S. bond yields edged up in its first trade after Christmas, with the 10-year U.S. Treasuries yield up 0.6 basis point at 0.930%.
The rollouts of covid-19 vaccines are also bolstering hopes of more economic normalisation next year, with Europe launching a mass vaccination drive on Sunday.
That offset alarms over a new highly infectious variant of the virus that has been raging in the south-east of England and was confirmed in many other countries, including Japan, France and Canada, over the weekend.
Major currencies were little changed.
The euro traded at $1.2204, a tad below its 2-1/2-year high of $1.22735, while the yen changed hands at 103.56 per dollar.
The British pound changed hands at $1.3565, not far from a 2-1/2-year high of $1.3625 hit earlier this month after Britain and the European Union reached an agreement on trade framework after Brexit.
Bitcoin extended gains over the weekend to reach a new high of $28,377.94 before stepping back to $26,457.32, bringing the total value of the cryptocurrency in circulation to over $500 billion.
Oil prices edged down a tad, with U.S. crude futures down 0.8% at $47.85 per barrel.
(Reuters contributed to the story)
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