Markets may be volatile; Reliance, IndiGo shares in focus
Mumbai: The Indian stock markets may be volatile amid key corporate earnings for June quarter while global peers are firm.
Asian stocks gained and the dollar sagged on Friday after a top Federal Reserve official all but cemented expectations of a US interest rate cut later this month.
Australian stocks added 0.4%, South Korea’s KOSPI rose 0.8% and Japan’s Nikkei advanced 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3%, squaring the previous day’s losses.
Wall Street shares shook off a sluggish start and moved higher overnight thanks to the dovish comments by New York Fed President John Williams.
Back home, shares of Reliance Industries are likely to be in focus as it will announce its June quarter earnings after market closes for trading today. The oil-to-telecom conglomerate is likely to report a muted first-quarter earnings on Friday as gains from its telecom and retail arms will be offset by the weakness in its refining and petrochemicals business, analysts said. RIL’s gross refining margin (GRM) may be at $8-$8.5 per barrel in Q1.
Under the cloud of sparring promoters, InterGlobe Aviationboard is scheduled to meet on Friday to consider quarterly financial results and is also likely to discuss differences between the promoters over corporate governance matters.
Other key companies which will announce June quarter earnings on Friday are Bandhan Bank Ltd, Dabur Ltd, Hindustan Zinc Ltd, RBL Bank.
The Securities and Exchange Board of India (Sebi) proposed on Thursday ramping up disclosure for auditors of listed companies, after a number of firms abruptly resigned from audit assignments without citing sufficient reasons, leaving investors in the dark.
Meanwhile, the super-rich tax is here to stay for a large section of foreign portfolio investors (FPIs), with Union finance minister Nirmala Sitharaman ignoring their pleas while proposing further tax relief for startups and non-bank lenders.
The dollar index against a basket of six major currencies stood little changed at 96.778 after losing roughly 0.5% overnight to a two-week low of 96.671 in the wake of comments from the Fed’s Williams. The greenback was up 0.15% to 107.460 yen after the New York Fed tried to clarify Williams’ earlier comments, crawling away from a three-week trough of 107.210 marked on Thursday when the currency lost 0.6% against its Japanese peer. The euro was 0.1% lower at $1.1262 after climbing 0.45% the previous day.
US Treasury yields were lower across the board in light of Williams’ dovish views. The 2-year yield was at 1.7908% after touching a two-week low of 1.7520%. The 10-year yield declined to a 10-day trough of 2.023% and was last at 2.045%.
In commodities, US crude oil futures rose 1% to $55.90 per barrel after slumping 2.6% overnight.