04 Oct , 2021 By : Kanchan Joshi
MUMBAI : Markets are likely to be volatile on Monday following global cues. SGX Nifty trends indicate a weak opening of Indian benchmark indices. On Friday, the BSE Sensex closed at 58,765.58, down 360.78 points or 0.61%. The Nifty closed at 17,532.05, down 86.10 points or 0.49%.
Asian stocks saw a muted start to the week as investors weighed prospects for a pickup in growth against concern over inflationary pressures. Japanese shares fluctuated alongside US futures, while Australian stocks stayed higher.
Earlier gains pared after trading of China Evergrande Group shares was suspended in Hong Kong, along with those of its property management unit.
Mainland Chinese markets are closed through Thursday for the Golden Week holidays.
Asia investors are watching Monday for news on Evergrande, which faces a maturing bond with little wiggle room for payment. Oil traders will monitor comments from OPEC which meets virtually amid a spiral higher in crude prices.
Zee Entertainment Enterprises Ltd on Friday rejected a demand from Invesco Ltd for a special shareholders’ meeting to oust its managing director Puneet Goenka, intensifying the standoff between the company and its largest investor.
The Centre on Saturday notified ground rules for settling 17 tax disputes with multinational companies like Cairn Energy Plc. and Vodafone Plc. that involved use of an anti-abuse provision introduced in tax laws in 2012 on past transactions. The Income-tax (31st Amendment) Rules, 2021, that sets the conditions for settlement of these cases takes effect from 1 October, showed an official notification published on Saturday.
Oil marketing companies (OMCs) have hiked prices of aviation turbine fuel (ATF) by about 9% over last month, and over 80% in the last year, as global crude oil prices firmed up on improved demand.
Meanwhile, as investor fears mount about slowing economic growth, US labor data at the end of the week will also be a key focus for markets. Last month global stocks posted their worst performance since March 2020 amid concern about elevated inflation, supply-chain bottlenecks, a global energy crunch and a slowdown in China.
Still, some market participants have been encouraged by historical patterns where stocks tend to show strength into year-end.
The dollar was little changed after two sessions of losses. Treasuries edged up, with 10-year yields slipping to 1.45%. The S&P 500 closed higher Friday after promising results for a Covid-19 pill and positive manufacturing data triggered a rally in companies that stand to benefit from an economic reopening.
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