Markets may be volatile but stimulus hopes may lift sentiments; HUL in focus2 min read . Updated: 20 Oct 2020, 08:48 AM IST
- Though sentiment among global investors is weak, expectations of another stimulus by government may see buying in domestic markets. Finance minister Sitharaman on Monday said possibility of a third stimulus package remains
MUMBAI: Indian markets are likely to be volatile on Tuesday. The SGX Nifty futures suggest a weak opening of Indian benchmark indices. On Monday, the BSE Sensex had ended at 40,431.60, up 448.62 points or 1.12%. The Nifty was at 11,873.05, up 110.60 points or 0.94%
Asian stocks slipped on Tuesday as investors adjusted risk exposure heading into the US election and as a deadline for Washington to pass an economic stimulus bill approached while Europe reported record daily coronavirus infections.
Caution among investors globally was also driven by rising concerns about the risk of a disputed US election outcome.
European shares closed lower as surging covid-19 cases raised investor concerns. Parts of the UK were put into lockdown and France imposed curfew.
Though sentiment among global investors is weak, expectations of another stimulus by government may see buying in domestic markets. Finance minister Nirmala Sitharaman on Monday said the government has not closed the option of a third stimulus package in the current financial year ending 31 March, 2021, a week after announcing demand measures to boost consumer spending and capital expenditure in the economy.
FMCG major HUL will report its September quarter results today.
Blackstone Group Inc. is in advanced talks to buy L&T Asset Management Co. as the private equity giant looks to double down on its investments in India, its strongest performer, amid depressed valuations because of the coronavirus outbreak, according to a Mint report.
Maruti Suzuki India Ltd is considering a series of steps to improve the financials of its struggling dealers, including boosting their profit margins and ensuring that they have access to bank credit, according to a Mint report.
In contrast to global equity markets, currency markets were less pessimistic about the prospect of a stimulus breakthrough with the safe-haven dollar edging slightly lower amid expectations that U.S. lawmakers might still agree on a fiscal stimulus package at the 11th hour.
Greenback moves, however, were modest with the dollar index 0.015% lower on Tuesday. The dollar rose 0.03% against the yen to 105.46 while the euro was up 0.03% to $1.1772.
The Australian dollar fell 0.2% versus the greenback at $0.7045, hurt by expectations that the central bank would soon cut rates and expand its massive bond buying campaign to lower borrowing costs.
In oil markets, USWest Texas Intermediate (WTI) crude CLc1 futures fell 0.3% to $40.69 a barrel while Brent crude LCOc1 futures dipped 0.6% to $42.36 a barrel.
Reuters contributed to the story.