BackStock markets likely to be cautious; Bharti, Adani Enterprise, Vodafone in focus
Bharti Airtel, Adani Enterprises, Adani Ports & Special Economic Zone, Dabur India, Tata Consumer Products, Godrej Consumer Products, Indian Overseas Bank, Bank of India, IIFL Wealth Management are among the key companies scheduled to announce their June quarter earnings today
PremiumMUMBAI: Indian stock markets are likely to be cautious on Tuesday while trends in SGX Nifty suggest a negative start to domestic benchmark indices. On Monday, the BSE Sensex ended at 52,950.63, up 363.79 points or 0.69%. The Nifty closed at 15,885.15, up 122.10 points or 0.77%.
Asian stocks slipped on Tuesday, as the Delta coronavirus variant spread in key markets in the region and put Chinese authorities on high alert, rattling investor confidence.
Trade in Asia faced a weaker lead from Wall Street after investors there considered the impact the increasing number global cases of Delta could have on global economic growth.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.40% in early trading. Japan’s Nikkei was off 0.85% in early trade. Hong Kong’s Hang Seng Index fell 0.83%.
In China, the spread of the Delta variant from the mainland’s coast to its inland cities prompting authorities to implement strict counter epidemic measures to bring the outbreak under control
Adding to the negative sentiment is ongoing investor concern about increasing Chinese official regulation in sectors ranging from technology, fintech and education.
The Dow Jones Industrial Average fell 0.28%, the S&P 500 lost 0.18% and the Nasdaq Composite added 0.06%.
Back home, Bharti Airtel, Adani Enterprises, Adani Ports & Special Economic Zone, Dabur India, Tata Consumer Products, Godrej Consumer Products, Indian Overseas Bank, Bank of India and IIFL Wealth Management are among the key companies scheduled to announce their June quarter earnings today.
Adani Wilmar Ltd (AWL), the equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd and the owner of the Fortune brand of edible oils, on Monday filed the draft red herring prospectus (DRHP) for its proposed initial public offering (IPO), Adani group flagship company Adani Enterprises said in an exchange filing.
Aditya Birla Group chairman Kumar Mangalam Birla has offered to transfer the group’s entire ownership in Vodafone Idea Ltd to the government in a last-ditch effort to keep the cash-strapped telco from collapsing.
Tata Motors on Monday announced a minor hike in prices of all its passenger vehicles offered in the Indian car market, effective Tuesday (3 August). While no official reason has been assigned behind the decision to hike prices, rise in input costs have been cited by the company in the recent past. There is, however, price protection on all retail till August 31.
The benchmark 10-year Treasury yield was down 5.5 basis points at 1.1839% in afternoon trading, extending a pattern of declines playing out since the spring.
The yield touched 1.151%, the lowest since July 20, shortly after an Institute for Supply Management report showed July U.S. manufacturing growth slowed for the second straight month.
In US trade, crude oil was down between 3.3% and 3.6%, which Commonwealth Bank analysts said was the result of the Delta variant being seen “as a headwind on still recovering oil demand."
Oil started to track slightly higher during early Asian trade though.
U.S crude ticked up 0.31% to $71.46 a barrel. Brent crude was 0.32% up to $73.15 per barrel. Gold was slightly lower.
Spot gold was trading down 0.1% $1812.4352 per ounce.
(Reuters contributed to the story)
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