07 May , 2021 By : Kanchan Joshi
Mumbai: Indian equity markets are likely to stay firm on Friday, while trends in SGX Nifty suggest a positive opening of domestic benchmark indices. On Thursday, the BSE Sensex ended at 48,949.76, up 272.21 points or 0.56%. The Nifty was at 14,724.80 , up 106.95 points or 0.73%.
Asian stocks opened slightly higher after US indexes gained on positive economic data. The dollar held losses.
Shares edged up in Japan, South Korea and Australia. U.S. contracts were in the green after rallies in U.S. benchmarks overnight, which included a fresh record for the Dow Jones Industrial Average. Treasuries held steady, with the 10-year yield hovering at 1.57%, well below recent highs.
While strengthening growth in the world’s largest economy is supporting markets, investors are concerned that a faster-than-expected rebound on unprecedented government and central bank stimulus could drive excessive inflation. The Federal Reserve remains committed to near-zero interest rates to bring about a full recovery, though an announcement of a pullback in its heavy monthly bond purchases seems increasingly likely in the second half of this year.
Concerns about excessive risk taking could spur more talk of the Fed adjusting policy. The central bank’s semi-annual financial stability report noted rising appetite for risk across a variety of asset markets is stretching valuations and creating vulnerabilities in the US financial system.
Key companies which will announce March quarter results today are HDFC, Ultratech Cement, Dabur India, EIH and Godrej Agrovet.
Two-wheeler market leader Hero MotoCorp on Thursday reported a 44% jump in consolidated net profit at Rs885.28 crore for the fourth quarter ended March 31, riding on robust sales.
The International Monetary Fund said on Thursday the recent jump in covid cases in India posed downside risks to the Fund's April forecast for 12.5% growth in India's economic output in fiscal years 2021 and 2022.
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