BackMarkets may remain volatile; Tata Steel, Eicher Motors, Hero Moto in focus
Among key companies Tata Steel, Bharat Petroleum, Eicher Motors, Hero Motocorp, NMDC, Aurobindo Pharma, IRCTC, Ashok Leyland, Page Industries, Bharat Forge, Oil India and GR Infraproject will announce June quarter earnings today.
PremiumMUMBAI: Markets are likely to see continuation of volatility while trends in SGX Nifty indicate a flat opening of Indian benchmark indices on Thursday. On Wednesday, the BSE Sensex closed at 54,525.93, down 28.73 points or 0.05% and the Nifty ended at 16,282.25, up 2.15 points or 0.01%.
Asian shares failed to follow a strong close on Wall Street with fears about the spread of the Delta variant of the coronavirus weighing on sentiment even as tame US inflation eased fears the Federal Reserve would rush to reduce its economic support.
That data also caused dollar to retreat against most major currencies and US Treasury yields to edge down overnight though both were steadier in Asian hours.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.25% in early trading, dragged by a 0.24% decline in Chinese bluchips. The Hong Kong benchmark fell 0.2% while Australian shares were largely flat and Japan's Nikkei rose 0.35%.
The weaker performance by Asian benchmarks contrasts with the situation elsewhere in the world. On Wednesday the MSCI all-country index, a gauge of stocks across the globe, hit a record high.
In comparison the Asian benchmark is down over 10% from its February peak.
The Dow Jones Industrial Average and S&P 500 closed at record levels on Wednesday, after the US Labor Department reported the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.
Among key companies Tata Steel, Bharat Petroleum, Eicher Motors, Hero Motocorp, NMDC, Aurobindo Pharma, IRCTC, Ashok Leyland, Page Industries, Bharat Forge, Oil India and GR Infraproject will announce June quarter earnings today.
PNB Housing Finance is now looking to raise ₹35,000 crore debt, after facing legal hurdles in the Carlyle group deal, days after SAT gave a split verdict in the matter. The company will seek shareholders'' nod in its annual general meeting (AGM) on September 3, 2021, PNB Housing Finance said in a regulatory filing on Wednesday.
Cigarettes-to-hotels conglomerate ITC Ltd has undertaken an “extensive strategy reset" that will power the company’s next phase of growth as it taps into newer opportunities across businesses with a strong focus on digital and sustainability, chairman Sanjiv Puri said at the company’s 110th AGM on Wednesday.
US policymakers are publicly discussing how and when they should begin to trim the massive asset purchases launched by the Fed last year to stabilise financial markets and support the economy through the coronavirus pandemic.
The easing of fears about inflation reduces the pressure to taper those asset purchases soon rather than later in the year, after strong employment figures last week had given ammunition to those with a more hawkish tilt.
As a result, U.S. Treasury yields fell on Wednesday across most maturities, though trading was choppy.
Moves were more muted in Asian hours. Yields on benchmark 10-year Treasury notes was last 1.3455% compared with its U.S. close of 1.359%. The dollar hovered below a four-month peak against major peers on Thursday, after retreating overnight as yields dropped.
Oil largely held onto gains from earlier in the week, U.S. crude dipped 0.03% to $69.23 a barrel. Brent crude was flat at $71.43 per barrel.
Gold also held on to overnight gains on Thursday, with the spot price down 0.1% having risen 1.3% in the previous session. Easing of fears about higher interest rates would typically help the non-interest bearing asset.
(Reuters contributed to the story)
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