Markets may consolidate banks, financial services stocks, Tata Motors in focus

15 Jun , 2021 By : Kanchan Joshi

MUMBAI: Markets are likely to consolidate on Tuesday while trends in SGX Nifty suggest a negative opening of Indian benchmark indices. On Monday, the BSE Sensex ended at 52,551.53, up 76.77 points or 0.15% and the Nifty closed at 15,811.85, up 12.50 points or 0.08%.

Asian stocks traded mixed Tuesday after their US peers closed at a record and a bond rally stalled ahead of a key Federal Reserve meeting.

Japanese shares gained, while Australian stocks outperformed after a holiday. Benchmarks in Hong Kong and China slipped as they too reopened after a break on Monday.

US futures were little changed up after gains in technology shares pushed the S&P 500 to an all-time closing high. Still, three stocks fell for every one that rose. The 10-year Treasury yield was steady under 1.5?ter rising Monday. The dollar was flat.

Investors are on the lookout for signals from the Fed about a timetable for scaling back emergency monetary stimulus. Expectations are that the central bank will reaffirm the pace of bond purchases this week, even if it delivers projections for interest-rate liftoff in 2023, according to economists surveyed by Bloomberg. The decision is due Wednesday.

Microfinance institutions (MFIs) may get freedom to set interest rates guided by a board-approved policy, under a Reserve Bank of India (RBI) proposal to review the regulatory framework governing them. The proposal, if implemented, will end the existing regulatory cap on MFI interest rates.

The government will receive Rs1,426 crore as dividend from Coal India Ltd (CIL) after the dry fuel miner on Monday announced an additional final dividend of 35% or Rs3.5 per share on equity shares of Rs10 each, an official said.

Tata Motors on Monday said its board has approved a proposal to raise up to Rs500 crore through the issue of securities on a private placement basis.

Shares of Adani Group companies may continue to be in focus today following the crash on Monday even as it has denied that demat accounts of foreign funds which holds stake in it were frozen.

Elsewhere, crude oil edged back above $71 a barrel on optimism that economic reopenings will boost summer demand in the US and Europe.