19 Oct , 2021 By : Kanchan Joshi
Indian stock markets are likely to remain steady on Tuesday. Trends in SGX Nifty indicate a positive opening for domestic equities.
On Monday, the BSE Sensex ended at 61,765.59, up 459.64 points or 0.75%. The Nifty closed at 18,477.05, up 138.50 points or 0.76%.
Asian shares advanced on Tuesday, supported by a tech-driven Wall Street rally, and a rebound in Chinese markets a day after weak data heightened investor concerns about the world's second-largest economy.
The dollar was under pressure as weak US factory data tempered expectations about any near-term interest rate increases.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.76% on Tuesday. It is up about 5% since its 12-month low hit on 5 October, largely in line with a similar rally in world shares following a strong opening to the US earnings season.
However, the Asian benchmark is still well off its level in late July, when a series of regulatory changes in China roiled markets. Japan's Nikkei gained 0.56%.
Back home, companies that will release their September quarter results today are Hindustan Unilever, Nestle India, ICICI Prudential Life Insurance, L&T Technology Services, ACC, ICICI Securities and Tata Steel BSL among others.
The Reserve Bank of India (RBI) on Monday imposed a monetary penalty of Rs1 crore on the country's biggest lender State Bank of India (SBI) for non-compliance with the directions contained in 'Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs).
In line with the reforms announced for the telecom sector, the government has now written to telcos, including Bharti Airtel, Vodafone Idea and Reliance Jio, asking them to convey by October 29 if they would be opting for four-year moratorium, according to PTI.
In currency markets, the dollar languished near the bottom of its recent range against major peers on Tuesday, knocked back by weak U.S. factory data overnight and on market wagers of faster normalisation of monetary policy in other countries. The dollar index slipped 0.13% and was last at 93.83 near its lowest level this month, losing ground on sterling and the euro , though holding its position against the yen.
US Treasuries took a breather in early Asia. Overnight, five-year yields rose to their highest levels since early 2020 as traders positioned for expected central bank rate hikes.
Oil prices dipped from multi-year highs touched on Monday, also due to the fall in factory data, tempering expectations of demand, but high prices remain a concern for energy importing countries.
Brent crude lost 0.42% to 83.97 a barrel and U.S. crude lost 0.24% to 82.24 a barrel.
0 Comment