24 Jun , 2021 By : Kanchan Joshi
MUMBAI: Indian equity markets were higher in early deals on Thursday, led by gains in index heavyweights TCS, Infosys and HDFC Bank. Reliance Industries Ltd (RIL) was under pressure, down 0.17%, ahead of its annual general meeting (AGM), scheduled for later today.
At 09:41am, the benchmark Sensex was up 0.5% at 52565 points while Nifty rose 0.45% to 15757 points.
Analyst expect volatility in the markets during the day.
RIL may update investors about the proposed stake sale of its oil-to-chemical (O2C) business to Saudi Aramco and the launch of Jio-Google phone at its AGM. Clarity on JioMart and other online commerce businesses along with the integration of JioMart-WhatsApp are also expected out of the AGM on Thursday.
"Equity market may remain volatile given F&O monthly expiry...Investors would continue to track global central banks and Reserve Bank of India’s step forward as signs of rising inflation leads to fear of a sooner-than-expected tightening in global monetary policies especially post US Fed’s hawkish policy statement," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial
Domestic equities look to be modestly good as of now. Notably, a sharp rise in crude price with Brent surpassing $75/barrel and recent weakness in rupee have emerged as key overhangs for the market in recent periods, analysts said.
"We note every $5 increase in crude price can raise the government's monthly import bill by ~Rs40-50bn and can stoke inflation further. However, a sharp contraction in daily caseload and ramp-up in vaccination programmes offer comfort," said Binod Modi, Head Strategy at Reliance Securities.
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