After a strong rally in the last hour of trade yesterday, the markets may stay volatile on Thursday ahead of futures and options (F&O) expiry of April series. SGX Nifty is marginally down, suggesting a tepid start for Indian markets.
Asian shares slipped on Thursday as a surprise deterioration in German business morale rekindled fears of slowing global growth, while oil prices pulled back slightly after a sharp run-up earlier in the week.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 percent, while Japan’s Nikkei average edged up 0.3 percent to 22,264.81 points. Overnight, Wall Street shrugged off some earnings misses but drifted lower at the end of the session, after the S&P 500 and the Nasdaq Composite registered record closing highs on Tuesday.
Back home, companies that will announce March quarter earnings are Maruti Suzuki India, Axis Bank, Tata Steel, Biocon and SBI Life Insurance Company.
Capital markets regulator, the Securities and Exchange Board of India (Sebi), has barred Hotel Leelaventure Ltd from selling its assets, including four hotels, to Canadian investment fund Brookfield Asset Management LLC. Leela hotels, in a stock exchange filing on Wednesday, said it had received a letter from Sebi saying that the transaction should be put on hold, pending further directions from the regulator.
In the currency market, the dollar index, which measures the greenback versus a basket of six major rivals, rose to as high as 98.189 overnight, its highest level since May 2017. The index was last quoted at 98.133. The euro slumped to a 22-month low against the US dollar overnight after the drop in German business confidence highlighted the divergence between data in the euro zone and the United States.
The pound held at a two-month low, weighed down by a broad-based rally in the dollar and fading hopes of a breakthrough in Brexit talks between the British government and the opposition.
Oil prices hovered below six-month highs after data showed US crude stockpiles surged to their highest levels since October 2017, countering fears of tight supply resulting from OPEC output cuts and US sanctions on Venezuela and Iran.
(Reuters contributed to the story)