OPEN APP
Home >Markets >Stock Markets >Markets may be flat ahead of Fed meet; Canara Bank, ICICI Bank, PFC in focus

MUMBAI: Markets are likely be marginally higher on Wednesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Tuesday the BSE Sensex ended at 52,773.05, up 221.52 points or 0.42% and the Nifty closed at 15,869.25, up 57.40 points or 0.36%.

Asian stocks saw muted trading Wednesday after their US peers retreated from all-time highs, with investors awaiting a policy decision from the Federal Reserve. Crude oil traded at the highest since 2018.

Shares were modestly higher in Japan and Australia, while South Korean stocks led gains. Hong Kong and Chinese equities slipped. US futures were little changed. Earlier, weakness in the technology and real estate sectors helped snap a three-day winning streak for S&P 500 Index.

Canara Bank said it will be the lead sponsor of National Asset Reconstruction Company Ltd (NARCL), or bad bank, with a 12% stake in the entity. Bad bank refers to a financial institution that takes over bad assets of lenders and undertakes resolution.

The Mumbai bench of the National Company Law Tribunal (NCLT) has questioned the haircut that creditors have to take in the Videocon Industries Ltd’s (VIL) resolution plan. The resolution applicant was paying close to the liquidation value to acquire the company, the tribunal noted in the order approving the resolution plan submitted by Anil Agarwal’s Twin Star Technologies.

State-run Power Finance Corporation on Tuesday posted a multifold jump in its consolidated net profit to 3,906.05 crore in the January-March quarter mainly on the back of higher revenues. The consolidated net profit of the company was 693.71 crore in the quarter ended on 31 March 2020, a BSE filing said.

ICICI Bank on Tuesday said it has raised over 2,827 crore by issuing bonds on a private placement basis.

The 10-year Treasury yield held around 1.5% after the US commerce department's figures showed retail sales declined in May. Producer prices further stoked price pressures, rising more than expected in May. The dollar held gains versus major peers.

Investors have been marking time ahead of the Fed’s policy decision as they await clues about when the central bank will slow the pace of emergency asset purchases. The statement is set to include updated projections for interest rates and economic forecasts, and expectations are that officials would broadcast any taper plans well in advance.

Economists expect the so-called dot plot to point to an interest-rate increase in 2023, while the bank is unlikely to signal a scaling back of bond purchases until later this year.

(Bloomberg contributed to the story)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout