Markets seen in range, US stimulus deal likely to lift sentiment; DHFL in focus2 min read . Updated: 21 Dec 2020, 08:29 AM IST
- The race to acquire bankrupt Dewan Housing Finance Corp. Ltd (DHFL) has intensified with top bidders Oaktree Capital Management and Piramal Group offering to sweeten their bids as the sale process entered final negotiations
MUMBAI: Indian equities may see a lower start on Monday as trends in SGX Nifty indicate a weak opening. On Friday, the BSE Sensex ended at 46,960.69, up 70.35 points or 0.15%. The Nifty closed at 13,760.55, up 19.85 points or 0.14%.
Asian stocks traded sideways in Asia on Monday as investors gave a cautious welcome to news a deal had been struck on a long-awaited US stimulus bill, though “difficult" Brexit talks dragged on with no agreement in sight.
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Sterling slipped 0.8% to $1.3408 after several European countries closed their borders to the UK as the country entered a tougher lockdown to fight a new strain of coronavirus.
Prime Minister Boris Johnson will chair an emergency response meeting on Monday to discuss international travel and the flow of freight in and out of Britain.
In the United States, Republican US Senate Majority Leader Mitch McConnell said an agreement had been reached by congressional leaders on a roughly $900 billion covid-19 relief bill.
The news saw futures for the S&P 500 jump at first, only to fade back to flat as the morning progressed MSCI’s broadest index of Asia-Pacific shares outside Japan dithered either side of flat after hitting a string of record peaks. Japan’s Nikkei added 0.5% to its highest since April 1991.
Analysts at BofA noted a huge $46.4 billion flowed into equities in the latest week, while the outflow from cash was the largest in four months. There were record flows into tech shares and large flows to the consumer sector, healthcare, financials, real estate and value stocks.
The race to acquire bankrupt Dewan Housing Finance Corp. Ltd (DHFL) has intensified with top bidders Oaktree Capital Management and Piramal Group offering to sweeten their bids as the sale process entered final negotiations, according to a Mint report.
Reliance Industries Ltd (RIL) and BP Plc on Friday said production has started from the R-Cluster, an ultra-deep-water gas field in the KG D6 block, off the east coast of India.
State-run Canara Bank on Saturday said its exposure to Transstroy India Ltd is ₹678.28 crore under a consortium lending arrangement and the borrower was declared a wilful defaulter earlier in 2018.
The dollar index edged up a little to 90.147 and away from last week’s trough of 89.723, which had been the lowest since April 2018.
The euro likewise edged back to $1.2216, while the dollar was a shade firmer on the yen at 103.45.
The dollar also got a lift from a Nikkei report that Japanese Prime Minister Yoshihide Suga told Finance Ministry officials in November to make sure the dollar did not fall below 100 yen. The pause in the dollar’s decline saw gold prices pare a little of their recent gains at $1,883 an ounce.
Oil prices ran into some profit-taking after notching up seven straight weeks of gains, with travel restrictions in Europe a further blow to demand.
US crude eased 79 cents to $48.31 a barrel, while Brent crude futures fell 70 cents to $51.56.
(Reuters contributed to the story.)