MAMBAY: Markets are likely to continue to consolidate on Thursday, while trends in the SGX Nifty suggest a positive opening. On Wednesday, the BSE Sensex closed at 51,941.64 points, down 333.93 points or 0.64%. The Nifty closed at 15,635.35, down 104.75 points or 0.67%.
Asian equities rallied, but maintained their recent trading range Thursday as investors focused on US inflation data and the risk of a surprise surge that could prompt the Federal Reserve to begin cutting massive stimulus.
Key companies to announce their quarterly results for March today are Steel Authority of India (Sail), NHPC, Century Plyboards (India), Cera Sanitaryware, Mazagon Dock Shipbuilders, eClerx Services and National Fertilizers.
Yes The Bank plans to raise funds in Indian or foreign currency by issuing debt securities. Yes Bank’s board meeting will take place on Thursday to review, approve and obtain shareholder approval for borrowing / raising funds. Separately, the Central Bureau of Investigation (CBI) has filed a case against Gautam Tapar of Avantha Group on fraud charges amounting to ₹Rs 466 crore from Yes Bank.
India’s largest domestic airline IndiGo, which recently reported its fifth consecutive quarterly loss, mainly due to the coronavirus pandemic, expects domestic passenger traffic to recover by the end of 2021 and internationally by mid-2022. However, structural problems such as low profitability and high taxes will need to be addressed, the airline’s chief executive, Ronojoy Datta, said in an interview.
Fixed income markets played a big role overnight, with some analysts pointing to the abandonment of additional US stimulus measures, while others speculated about likely shorting ahead of the May CPI.
The yield on 10-year US Treasuries fell to 1.4891% from 1.528% on Tuesday. A drop below 1.47% will push the yield down to its lowest since March 4.
On Wall Street, overnight, the S&P 500 approached its all-time high of May, as major tech stocks rallied in tandem with health care stocks, but ended up 0.1% lower. The Dow fell 0.44% and the Nasdaq Composite fell 0.09%.
Markets are awaiting a European Central Bank (ECB) policy meeting later in the day, at which it will likely leave its policy recommendations unchanged and release updated macroeconomic forecasts for the euro area.
Also later that global day, the US CPI is expected to rise 0.4% in May, reaching an annualized rate of 3.4% growth, according to a Reuters poll.
US gold futures fell 0.3% to $ 1,889.50 an ounce.
Oil prices fell after rising in the previous session on hopes for stronger demand from Western economies that are gradually reopening after the coronavirus lockdown.
Brent crude oil futures fell 22 cents to 72 a barrel, while US oil futures fell 27 cents to $ 69.69 a barrel.
Foreign exchange activity was muted, with the dollar remaining flat against the yen at 109.58.
The euro was slightly weaker at $ 1.2169 ahead of the ECB meeting, while the British pound fell to $ 1.4100. As a result, the dollar index strengthened slightly at around 90.140.
(Reuters contributed to history)
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