Sensex likely to be under pressure, Sun Pharma shares in focus1 min read . Updated: 29 May 2019, 08:39 AM IST
- Sun Pharma reported a big drop in quarterly profit
- In commodity markets, oil prices are subdued today
Indian markets are expected to be under pressure amid weak global cues. Asian shares stumbled on Wednesday and global bonds rallied as investors fretted over the outlook for world growth with trade tensions between Washington and Beijing showing no signs of abating.
In Asia, focus remains on the ongoing Sino-US trade war. US President Donald Trump said on Monday that Washington was not ready to make a deal with China yet. At the same time, he pressed Japan to reduce its trade imbalance with the United States.
Back home, companies that will declare their March quarter earnings today include United Spirits, Adani Enterprises, Adani Power, Cadila Healthcare, Havells India, NBCC, PFC, Power Grid, Reliance Power and TTK Prestige.
Sun Pharmaceutical Industries Ltd shares are likely to be in focus as it reported a 53% drop in quarterly profit after it took a ₹1,085 crore one-time charge, following a corporate governance scandal following a corporate governance scandal that also led to founder Dilip Shanghvi’s brother-in-law moving to a non-executive role.
Net profit fell to ₹635.9 crore in the quarter ended 31 March from ₹1,342 crore in the year earlier, India’s largest drug maker said in a stock exchange filing on Tuesday.
Meanwhile, global bonds rallied overnight with US Treasury yields falling further to 2.26%, the lowest since September 2017. German Bund yields are also on a slippery slope since the EU elections.
In currencies, the dollar index edged higher to 97.924 from a recent two-week trough of 97.547.
The euro fell for a third straight day to $1.16 to inch closer to a recent two-year low of $1.11. The British pound too was weaker at $1.26 after falling for two sessions in a row over political turmoil about it exit from the European Union.
In commodity markets, oil prices were subdued on Wednesday after rising almost 1% in the previous session after flooding throughout the Midwest constrained crude flow from the main US storage hub in Cushing, Oklahoma.
Brent crude was last off 15 cents at $69.96 per barrel, hovering near a key $70 mark. US crude eased 37 cents to $58.77 per barrel.
(Reuters contributed to the story)