Markets likely to be volatile; diagnosis, focus on banking values

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MUMBAI: Markets are expected to be volatile on Monday as trends from SGX Nifty suggest a flat opening in Indian benchmarks. On Friday, the two benchmarks Sensex and Nifty hit an all-time high. BSE Sensex finished at 52,925.04, up 226.04 points or 0.43%. The Nifty was at 15,860.35, up 69.90 points or 0.44%.

Asian stocks started the week cautiously on Monday as a spike in coronavirus cases in Asia over the weekend hurt investor sentiment as oil hovered around its 2.5-year highs.

The largest MSCI index for Asia-Pacific stocks outside of Japan was slightly lower at 703.17, still near a two-week high of 705.35 reached on June 16. Australian stocks fell 0.3% while South Korea’s KOSPI index was slightly higher. % weaker.

Investors were worried about a spike in coronavirus infections in Asia, Australia’s most populous city, Sydney, plunging into lockdown after a cluster of cases exploded involving the highly contagious Delta strain.

Indonesia is grappling with a record number of cases as a lockdown in Malaysia is expected to be extended. Thailand also announced new restrictions in Bangkok and other provinces.

Global stocks hit record highs last week as lower-than-expected US inflation and the announcement of a bipartisan US infrastructure deal boosted risk appetite. The infrastructure plan is valued at $ 1.2 trillion over eight years, including $ 579 billion in new spending.

Back home, India’s debt soared to 58.8% of gross domestic product in the fiscal year ended March, from 51.6% a year ago, as economic contraction forced the government to borrow a record amount to fill a shortfall, data from the Ministry of Finance experts showed to raise concerns about medium-term debt sustainability.

The Reserve Bank of India has placed several endorsements while approving the proposal of Centrum Financial Services and BharatPe to create a small financing bank to take over the Punjab and the Maharashtra Cooperative Bank (PMC Bank) in crisis.

Key companies Hindustan Aeronautics, National Aluminum Company, Graphite India, Welspun Corp, GIC Housing Finance will report their March quarter results today.

The parent company of online pharmacy PharmEasy to purchase a 66.1% stake in diagnostic chain Thyrocare Technologies for 4,546 crore, a sign that Indians are increasingly using mobile applications for their health needs.

In the primary markets, shares of Krishna Institute of Medical Sciences and Dodla Dairy will be listed on the stock exchange.

the The 2,144 crore Initial Public Opening (IPO) of the Krishna Institute of Medical Sciences, which was open for subscription June 16-18, was underwritten 3.86 times in a price range of 815-825 per share.

Dodla Dairy’s The initial sale of 520 crore shares was subscribed 45.62 times at a price range of 421-428 each.

Oil prices hit their highest level since October 2018 at the start of Asian trading as demand growth is expected to exceed supply and Opec + will be cautious in bringing more crude back to the market from August.

Brent futures rose 7 cents to $ 76.25 a barrel, while US crude rose 6 cents to $ 74.11.

In Asia, all attention will be focused on the factory’s official activity from China scheduled for Wednesday. The manufacturing sector is expected to slow to 50.7 from 51. The Caixin private sector manufacturing PMI will follow later in the week.

On Friday, the S&P 500 rose 2.7% for the week, its strongest weekly gain since early February after data showed a measure of core inflation rose less than expected in May, easing fears of a sudden decrease in Federal Reserve stimulus measures.

The Dow Jones climbed 0.7% while the tech-rich Nasdaq fell 0.06% after hovering near the previous session’s record. MSCI’s stock gauge across the globe closed at a record high of 721.91.

Yields on benchmark 10-year US Treasuries rebounded above 1.50% to end a week in which rates recorded their biggest increases since March.

Global monetary and fiscal stimulus in response to the covid-19 pandemic are strengthening financial assets, despite an uneven pace of recovery across regions.

The activity was reduced in foreign currencies. The US dollar remained stable against a basket of other currencies, in choppy trading.

The Japanese yen hovered around 110.80 against the greenback and the euro was also stable at $ 1.1936.

In commodities, spot gold rose 0.1% to $ 1,782.2 an ounce as weaker-than-expected US personal consumption allayed fears of higher inflation and weaker monetary conditions. strict, stimulating investor demand for the yellow metal.

(Reuters contributed to the story)

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