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A surge in cases in coronavirus cases have dimmed hopes for an economic recovery anytime soon and this has dented equities. (Photo: Mint)
A surge in cases in coronavirus cases have dimmed hopes for an economic recovery anytime soon and this has dented equities. (Photo: Mint)

Markets seen mixed ahead of US Fed meet; RIL, Bharti, financial stocks in focus

  • Bharti Airtel, Maruti Suzuki, Dr Reddy’s Laboratories, Ceat, SpiceJet, Colgate Palmolive India, Glaxosmithkline Pharma, TVS Motor, among others, will announce their June quarter earnings today

MUMBAI: Indian equities will likely trade on a mixed note on Wednesday. The SGX Nifty futures suggest a flat opening of Indian benchmark indices.

On Tuesday, the BSE Sensex ended at 38,492.95, up 558.22 points or 1.47% and the Nifty was at 11,300.55, up 168.75 points or 1.52%.

Investors will likely focus on the US Federal Reserve's policy announcement, expected to be out sometime on Wednesday.

Asian equities pulled backed on Wednesday as an impasse in US economic stimulus negotiations pushed global stocks lower and sent investors into safe-haven assets like gold, which hovered near record highs.

US President Donald Trump said on Tuesday he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal the day after it was unveiled by Majority Leader Mitch McConnell, although he indicated talks were continuing.

Back home, shares of Reliance Industries will be in focus. Mint reported that Sovereign fund Qatar Investment Authority (QIA) is in advanced talks with the Indian conglomerate to invest around $1.5 billion (about 11,200 crore) in an infrastructure investment trust (InvIT) that holds RIL's fibre-optic assets.

Prime Minister Narendra Modi will video-conference with heads of top private and public sector banks, non-bank lenders and officials from the finance ministry to discuss credit flow and steps to revive the economy.

Private sector lender IndusInd Bank on Tuesday said it will raise 3,288 crore through a preferential issue of shares to its promoter Hinduja group and other institutional investors. Promoter entities, including Hinduja Capital and IndusInd International, will infuse 792 crore. Investors participating in the issue include Route One Fund and Route One Offshore, which will together contribute 935 crore.

Private lender Yes Bank reported a 60% year-on-year (y-o-y) drop in quarterly net profit to 45.44 crore, primarily because of a sharp decline in total income. A 30% y-o-y decline in interest income and a 51% drop in other income in the quarter led to a 33% fall in total income to 6,107 crore in the three months ended 30 June.

Among major companies, Bharti Airtel, Maruti Suzuki, Dr Reddy’s Laboratories, Ceat, SpiceJet, Colgate Palmolive India, Glaxosmithkline Pharma, and TVS Motor will announce their June quarter earnings today.

Gold is up over $125 per ounce in little more than a week as investors bet the Federal Reserve will reaffirm its super-accommodative policies at its two-day meeting ending on Wednesday, and perhaps signal a tolerance for higher inflation in the long run. Bullion pulled back from an all-time high reached earlier. Gold surged to a record high of $1,980.57 per ounce earlier, but prices retreated as much as 3.7% later in the session as investors booked profits and the dollar bounced back.

The dollar index against a basket of currencies gained 0.18% to 93.71, after dropping to 93.47 on Monday, the lowest since June 2018.

Oil prices fell as US lawmakers prepared to wrangle over the stimulus package and investors worried about a rise in coronavirus cases worldwide.

Brent crude was last down 0.32% to $43.27 per barrel while U.S. crude remained unchanged at $41.04 per barrel.

Reuters contributed to the story.

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