Markets likely to be volatile; Cairn, HDFC Bank, Dr Reddy in brief
MUMBAI: Markets are expected to be volatile on Wednesday as SGX Nifty trends point to a slight opening in Indian benchmarks. On Tuesday, the BSE Sensex finished at 58,279.48, down 17.43 points while the Nifty was at 17,362.10, down 15.70 points.
Asian stocks hovered just above six-week highs on Wednesday as a more risk averse mood swept across the US market overnight amid concerns over slowing growth which hurt stocks while helping the dollar strengthen.
The MSCI’s largest Asia-Pacific stock index outside of Japan fell 0.13% after posting sometimes small gains for 11 of the past 12 sessions. Japan’s Nikkei reversed its initial losses and rose 0.42% for the last time after revised gross domestic product growth figures beat expectations for the world’s third-largest economy. Most of the other moves were muted at the start of trading. Australia slipped 0.32%, Chinese blue chips fell 0.04% and the Hong Kong benchmark gained 0.12%.
The medium-term outlook for the region also continues to weigh on equities in Asia. The MSCI regional benchmark is still well below all-time highs, unlike the US and European equity markets.
The Dow Jones Industrial Average and S&P 500 fell 0.76% and 0.34% while the Nasdaq Composite climbed 0.07% to another record as investors shifted from cyclicals to tech stocks first class.
Britain’s Cairn Energy PLC said on Tuesday it would drop lawsuits to seize Indian properties in countries ranging from France to the United States, days after securing a $ 1 billion refund resulting from the removal of ‘retroactive tax law.
HDFC Bank announced on Tuesday that it has signed a pact with the National Small Industries Corporation (NSIC) to provide credit support to the micro, small and medium-sized enterprise (MSME) sector. Within this framework, the largest private sector bank in the country will also provide MSMEs with a set of specially tailored programs to improve their competitiveness.
Dr Reddy’s labs said they have started supplying the first-dose component of the Russian coronavirus vaccine Sputnik V to partner hospitals across India. He also said the Russian vaccine, which is given in two doses with an interval of 21 days, should be taken in the same hospital.
Settlement or transfer of ownership of shares on stock exchanges can be reduced to a single business day after the trade is executed from next year, the markets regulator said. The Securities and Exchange Board of India (Sebi) has decided to offer exchanges the option of offering the faster T + 1 trading cycle instead of the existing T + 2 cycle from January 1, granting a long-standing demand retail investors.
The dollar held onto overnight gains against a basket of its peers after hitting an almost four-week low overnight alongside benchmark US Treasury yields.
Yields on 10-year Treasuries retreated during Asian hours and were last at 1.3570% from a US close of 1.371% on Tuesday, after hitting an eight-week high of 1.385% earlier during the day. Rising yields hurt non-interest bearing gold overnight, but the spot price gained 0.18% on Wednesday to $ 1,798.03 an ounce, falling back to $ 1,800 after falling below the level of the previous session.
(Reuters contributed to the story)
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