Asian stock markets opened in positive territory after optimism surged over the progress of a proposed US stimulus as well as global recovery from Covid.
The Sensex was at 50,729.35, up 0.64%, or 324.03 points, at pre-open, while the Nifty was at 14,938.10, down 0.95% or 142.65 points. Indian benchmark equity indices appear set to rise owing to positive cues from Asian peers buoyed by positive developments on the US stimulus and global recoveries from Covid.
Bank Julius Baer has upgraded India to overweight as it will be the fastest growing major economy in 2021, ANI reported. “We change our stance on India from market-weight to overweight and see 15 percent upside from current levels with a Sensex price target of 58,450," the lender said in a note. “An economic recovery is underway, and we look for 9% y/y GDP growth this year, followed by 7% next year. We look for earnings per share to grow on average over 25% over the next 3 years. It would be unprecedented for the stock market to fall in an environment of such strong growth," it added.
The IPO of online travel company Easy Trip Planners opens for subscription on 8 March. The company has fixed a price band of ₹186-187 per share for its ₹510-crore initial share-sale. EaseMyTrip.com is operated by Easy Trip Planners Private Ltd. The three-day issue would close on 10 March.
Windy Lakeside Investment Ltd, an affiliate of private equity firm Warburg Pincus, will invest ₹800 crore in India’s largest private port operator Adani Ports and Special Economic Zone Ltd (APSEZ) for a 0.49% stake in the company. Read here for more.
Benchmark Indian equity indices closed nearly 1% lower on Friday amid volatility. The Sensex closed down 440.76 points or 0.87% at 50,405.32, while the Nifty ended the day at 14,938.10, down 142.65 points or 0.95%. ONGC, Maruti Suzuki, Kotak Mahindra Bank and Nestlé India led the nine stocks that ended in green on the 30-share gauge. Metals, banks and financials saw heavy selloffs through the day. Earlier, Fed Reserve chairman Jerome Powell's remarks on holding market intervention even amid better than expected recovery spooked global markets leading to selloffs and rise in bond yields.
Gold prices rose on Monday, recovering from a near nine-month low hit in the previous session, as a passage of the long awaited $1.9 trillion US coronavirus relief package boosted the metal's appeal. Spot gold rose 0.3% to $1,705.62 per ounce by 0041 GMT, after hitting its lowest since June 8 at $1,686.40 on Friday. US gold futures climbed 0.3% to $1,703.
The U.S. Senate on Saturday passed President Joe Biden's $1.9 trillion COVID-19 relief plan. Gold is viewed as a hedge against inflation, likely from extensive stimulus.
Further supporting bullion, US 10-year yields held below a one-year peak hit on Friday, while the dollar eased. (Reuters)
Anupam Rasayan India Ltd's ₹760 cr IPO to open on 12 March and the issue price has fixed at ₹553-555 a share. The IPO will close on 16 March. The issue includes a reservation up to 2.20 lakh shares for subscription by eligible employee. QIB portion reserved up to 50%, retail category reserved not less than 35% while non institutional category reserved not less than 15% of the net issue. Proceeds from the issue will be used to pay off ₹556.20 crore in debt. As of September, the company had a total debt of ₹814.48 crore.
Brent oil surged above $71 a barrel after Saudi Arabia said the world’s largest crude terminal was attacked, although output appeared to be unaffected after the missiles and drones were intercepted. Futures in London jumped 2.6% after rising 4.9% last week. The kingdom said a storage tank at Ras Tanura in the country’s Gulf coast was targeted on Sunday by a drone from the sea. The terminal is capable of exporting roughly 6.5 million barrels a day—nearly 7% of oil demand—and, as such, is one of the world’s most protected installations. (Bloomberg)
Asian stocks climbed Monday on optimism over President Joe Biden’s $1.9 trillion Covid-19 relief plan and the global recovery. Crude jumped after an oil facility was attacked. Shares rallied in Japan, Australia and South Korea, while S&P 500 Index futures edged higher. The U.S. stimulus moves to the House after the Senate passed the legislation, while data showed China’s exports jumped. Oil climbed after Saudi Arabia said one of the world’s most protected oil facilities came under attack.
SGX Nifty was up 0.76% or 114.50 points to 15,086.
S&P 500 futures rose 0.3% as of 9:04 a.m. in Tokyo. The S&P 500 rose 2% Friday.
Japan’s Topix index climbed 1%.
Australia’s S&P/ASX 200 Index rose 1.7%.
South Korea’s Kospi index rose 0.6%.
US stocks rebounded Friday. All major groups in the S&P 500 and technology gained. Ten-year Treasury yields climbed toward 1.6%, a level touched Friday as US jobs data beat estimates, fueling concerns about inflation risk. Better economic data and the prospect of more fiscal stimulus have pushed up bond yields, spurring questions about equity valuations. Treasury yields are rising because of a much stronger economic outlook, Federal Reserve officials said Friday, playing down the need for a monetary policy response. US treasury secretary Janet Yellen tried to counter inflation concerns by noting the true unemployment rate was nearer 10% and there was still plenty of slack in the labour market. Yet yields on US 10-year Treasuries still hit a one-year high of 1.625% in the wake of the data, and stood at 1.60% on Monday. Yields increased a hefty 16 basis points for the week, while German yields actually dipped 4 basis points.
The yield on 10-year Treasuries rose 3 basis points to 1.60%.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.