Markets may continue uptrend on global support; Future Retail, Adani Group shares in focus

Indian markets are likely to continue uptrend on Tuesday tracking gains in global peers. Trends in SGX Nifty also suggest a positive opening for Indian benchmark indices. On Monday, the BSE Sensex ended at 38,799.08, gaining 364.36 points or 0.95%. The Nifty settled at 11,466.45, up 94.85 points or 0.83%.

Asia's stock markets were higher in the early trade following a Wall Street rally driven by vaccine hopes, while the dollar found some support ahead of a key central bank speech.

Also supporting the mood were statements from both China and the United States saying top-level trade representatives had held constructive talks over the future of the Phase 1 trade deal.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% to its highest since early January and sits just a fraction below a two-year high.

Markets worldwide were boosted when U.S. regulators on Sunday authorised the use of blood plasma from recovered covid+19 patients as a treatment option, helping the S&P 500 1% higher to another record close overnight.

Kishore Biyani’s flagship company Future Retail Ltd, which runs the popular supermarket chain BigBazaar, on Monday said it has paid $14 million (approximately ₹105 crore) in pending interest on dollar bonds, after missing last month’s due date.

The Adani Group is in talks to acquire the GVK group’s stake in Mumbai International Airport Ltd (MIAL), PTI reported on Monday. The group controlled by billionaire Gautam Adani plans to acquire the 50.5 % stake held by the GVK Group in MIAL and a further 23.5% from GVK’s minority partners—Airports Company South Africa (ACSA) and the Bidvest group, giving it majority control of the second-busiest airport in the country, according to the report. The remaining 26% stake is held by state-run Airports Authority of India (AAI).

Bharti Airtel chairman Sunil Bharti Mittal on Monday hinted at an increase in mobile services prices in the next six months, saying that data at low rates is not sustainable for the telecom industry. He said that 16 GB data consumption a month for ₹160 is a tragedy.

In currency markets, the dollar, which has been sensitive to sentiment in equity markets edged higher, defying pressure from a gain in stocks that often leads investors to sell dollars for riskier currencies.

Investors now await a Thursday speech from Federal Reserve chairman Jerome Powell and expect he might address the Fed's future approach to inflation and allow it to run hotter than 2% to make up for years of undershooting.

The dollar also found support from an overnight rise in yields, which extended by a whisker on Tuesday as the yield on benchmark U.S. government 10-year debt edged up to 0.6590%. That kept the euro to $1.1795 and the Aussie at $0.7171 in Asian morning trade.

In commodity markets oil clung to overnight gains after storms disrupted U.S. production. Brent crude futures were steady at $45.13 a barrel and U.S. crude dipped 0.3% to $42.50 a barrel.

The firmer dollar held gold to $1,929 an ounce.

(Reuters contributed to the story)