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Business News/ Markets / Stock Markets/  Stock markets likely to rally on govt stimulus; realty shares, Tata Steel, Infosys in focus
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Stock markets likely to rally on govt stimulus; realty shares, Tata Steel, Infosys in focus

US, China trade deal could delayed till December as discussions continue over terms and venue, according to news agency
  • The government on Wednesday approved a plan to set up a ₹25,000 crore alternative investment fund (AIF) to revive stalled housing projects
  • Yields on benchmark US 10-year notes fell back to 1.82% from a two-month top of 1.87%. Photo: MintPremium
    Yields on benchmark US 10-year notes fell back to 1.82% from a two-month top of 1.87%. Photo: Mint

    Indian equities are seen higher on Thursday following the announcement of a slew of measures by the government to revive the realty sector. Among global peers, Asian shares paused near their multi-month peaks in early deals on Thursday, while bonds eked out a bounce as reports of a delay in sealing a preliminary Sino-US trade deal left investors frustrated.

    MSCI's broadest index of Asia-Pacific shares outside Japan was a shade lower, just off a six-month high hit earlier in the week. Japan's Nikkei started in the red, having touched a 13-month top on Wednesday, while South Korean stocks were 0.3% down after hitting their highest since May.

    Reuters reported on Wednesday that a meeting between US President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue. Among various suggestions was to one to sign the deal after a scheduled NATO meeting in early December.

    Wall Street was underwhelmed by the news and the Dow ended all but flat on Wednesday. The S&P 500 was a tad higher, while Nasdaq dropped 0.3%.

    Back home, the central government on Wednesday approved a plan to set up a 25,000 crore alternative investment fund (AIF) to revive stalled housing projects, as it seeks to provide relief to distressed homebuyers and rekindle animal spirits of the ailing realty sector. While the government will invest 10,000 crore in the fund, the remaining 15,000 crore will come in from State Bank of India, Life Insurance Corporation of India, and other such institutions, finance minister Nirmala Sitharaman said.

    Tata Steel, the country’s largest steelmaker, said fiscal second-quarter profit rose nearly 6% from a year earlier helped by one-time gains and a favourable tax regime. Net profit, including those of its units, rose to 3,302 crore in the quarter ended 30 September from 3,116 crore in the year-ago period. Consolidated revenue from operations fell 15.5% year-on-year to 34,579 crore during the period.

    Infosys Ltd chairman Nandan Nilekani on Wednesday said the company will take necessary steps if investigation into whistleblower complaints substantiates claims of corporate misgovernance, adding that the firm has responded responsibly and complied with applicable laws and past practices. As a result, the Infosys stock had rallied and ended the day as one of the biggest gainers among Nifty 50 constituents.

    The Bombay high court (HC) on Wednesday declined to entertain a plea by Adani Properties, seeking to restrain South Africa’s Bidvest Group Ltd from selling its minority stake in Mumbai International Airport Ltd (MIAL) to a third party, and extending a payment deadline for buying the stake. In April, Bidvest agreed to sell its 13.5% stake in MIAL to Adani Properties for 1,235 crore by 30 September.

    Meanwhile, the pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US 10-year notes fell back to 1.82% from a two-month top of 1.87%.

    That in turn restrained the dollar, which eased to 108.94 yen from a weekly high of 109.24. The dollar was just a shade softer against a basket of currencies at 97.949. The euro struggled to bounce at $1.1068, perilously close to chart support of $0.1060. Spot gold was little changed at $1,490.23 per ounce and well within recent tight trading ranges.

    Oil prices nursed losses after taking a hit from a surprisingly large build-up in US crude inventories. US crude was 2 cents lower at $56.33 a barrel.

    (Reuters contributed to the story)

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    Published: 07 Nov 2019, 08:27 AM IST
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