MUMBAI: Indian stock markets are likely to be under pressure on Friday, in line with global peers. Trends in the SGX Nifty suggest a weak opening of Indian benchmark indices.
On Thursday, the BSE Sensex ended at 37,736.07, down 335.06 points or 0.88% while the Nifty ended at 11,102.15, down 100.70 points or 0.90%.
Asian equities traded mixed on Friday. The benchmark Nikkei 225 index was down 0.2% in early trade, while the broader Topix index slipped 0.4%.
South Korea’s Kospi index fell 0.3%, while Australia’s S&P/ASX 200 Index declined 1.6%. Hong Kong shares were slightly higher.
Wall Street, oil prices, and the dollar slid on Thursday as government data underscored the deep economic impact of the coronavirus and US President Donald Trump raised the possibility of delaying the November election.
The US economy shrank at a 32.9% annual rate in April-June, its worst quarter in history by far, while another 1.4 million Americans applied for unemployment benefits last week.
Back home, shares of Reliance Industries (RIL) will be in focus today as the conglomerate has reported a consolidated net profit of ₹13,248 crore for April-June, aided by exceptional income of ₹4,966 crore. Net profit rose 31% year-on-year.
Revenue from operations for the quarter came in at ₹88,253 crore.
Bharti Airtel Ltd chief executive officer Gopal Vittal on Thursday hinted at another tariff hike, stressing that the telecom company’s average revenue per user (Arpu) needs to move to ₹200, and eventually to ₹300 per month, for a sustainable business model. Vittal, however, did not specify the timeline for hike in calls and data tariffs.
India on Thursday imposed restrictions on imports of colour television sets, intending to encourage local manufacturing and check imports from China. Colour television sets worth $781 million were imported in the year ended 31 March, most of which came from Vietnam ($428 million) and China ($292 million).
Among major companies, State Bank of India, Tata Motors, Sun Pharmaceutical Industries, Indian Oil Company, UCO Bank, JSW Energy and Ujjivan Small Finance Bank will declare June quarter results on Friday.
The dollar index fell 0.591%, and remains on course for its worst monthly performance in a decade, with the euro was up 0.2% to $1.187. The dollar has fallen on expectations the Fed will maintain its ultra-loose monetary policy for years, which risks adding inflationary pressure.
In commodity markets, oil markets fell following Trump's tweet. US West Texas Intermediate (WTI) crude futures settled down $1.35, or 3.3%, at $39.92 a barrel after falling 5% earlier in the session.
Spot gold dropped 0.2% to $1,955.65 an ounce. US gold futures gained 0.43% to $1,950.60 an ounce.
Reuters contributed to the story.