Markets seen steady; TCS, Avenue Supermarts, Future group in focus2 min read . Updated: 11 Jan 2021, 08:29 AM IST
- Trends on SGX Nifty suggest a positive opening for domestic indices, while Asian shares took a breather on Monday
MUMBAI : Indian markets are likely to remain steady on Monday, while trends on SGX Nifty suggest a positive opening for domestic indices. On Friday, the BSE Sensex closed at 48,782.51, up 689.19 points or 1.43%. The Nifty ended at 14,347.25 , up 209.90 points or 1.48%.
Asian shares took a breather on Monday while Treasury yields were at 10-month highs as “trillions" in new US fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
Investors were keeping a wary eye on US politics as pressure grew to impeach President Donald Trump, though signs were an actual trial could be some time away.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, having surged 5% last week to record highs. Japan’s Nikkei was closed for a holiday after closing at a 30-year high on Friday.
President-elect Joe Biden is due to announce plans for “trillions" in new relief bills this week, much of which will be paid for by increased borrowing.
Meanwhile, the Federal Reserve is sounding content to put the onus on fiscal policy with Vice Chair Richard Clarida saying there would be no change soon to the $120 billion of debt the Fed is buying each month.
Back home, the Securities and Exchange Board of India (Sebi) has asked lenders to Dewan Housing Finance Corp. Ltd (DHLF) for details on the credit rating claims raised by Oaktree Capital in its bid for the bankrupt mortgage lender, according to a Mint report.
Future Group companies will be in focus as promoter Kishore Biyani expects swift regulatory approval of its $3.4 billion deal to sell its retail assets, its chief executive said, even as its warring business partner Amazon.com Inc intensifies efforts to block the deal.
Tata Consultancy Services stocks will be eyed as the IT major on Friday reported a 7.2% rise in consolidated net profit to ₹8,701 crore for the December quarter. Revenue grew 5.4% in the quarter under review to ₹42,015 crore from ₹39,854 crore in the corresponding period last fiscal, it added. This is the strongest December quarter growth in nine years, TCS said.
Avenue Supermarts, owner of DMart, reported a much better-than-expected recovery in December quarter with revenue increasing 9% year-on-year to ₹7400 crore led by benefit from surge in festive season. Its other expenses fell 7% YoY despite the revenue growth, driving EBITDA margin to multi-quarter high.
Meanwhile, with the Fed reluctant to purchase more longer-dated bonds, 10-year Treasury yields jumped almost 20 basis points last week to 1.12%, the biggest weekly rise since June.
Treasury futures lost another 3 ticks early Monday. The climb in yields in turn offered some support to the down-trodden dollar, which had edged up to 90.320 against a basket of currencies from last week’s low of 89.206.
The euro pulled back to $1.2185 from a recent top of $1.2349, but has support around $1.2190. The dollar also firmed to 104.08 yen from a trough of 102.57 hit last week.
The sudden lift in bond yields undermined gold, which pays no interest, and the metal fell back to $1,844 an ounce from its recent peak at $1,959.
Oil prices held firm after reaching their highest in nearly a year on Friday, gaining 8% on the week after Saudi Arabia pledged to cut output.
Brent crude futures dipped 11 cents to $55.88, while U.S. crude futures added 2 cents to $52.26 a barrel.
(Reuters contributed to the story)