Markets likely to be volatile; bank stocks, TVS Motor in focus
- In primary markets, two stocks will make debut today. The ₹660 crore IPO of Laxmi Organics was subscribed 107 time in a price band of ₹129-130 per share
MUMBAI: Markets are likely to be volatile on Thursday while trends in SGX Nifty suggest a slightly positive opening of Indian benchmark indices. On Wednesday, the BSE Sensex ended at 49,180.31, down 871.13 points or 1.74%. The Nifty closed at 14,549.40 , down 265.35 points or 1.79%.
Asian markets were mixed on Thursday after global equities dipped and US investors considered which stock market sectors would most benefit from strengthening growth.
TRENDING STORIESSee All
Concerns about extended economic lockdowns in Europe and potential US tax hikes also weighed on investor sentiment.
European shares closed near two-week lows, while oil prices resurged from steep losses earlier in the week after one of the world’s largest container ships ran aground in the Suez Canal. Authorities were still trying to clear the ship from the vital shipping lane on Wednesday afternoon.
On Wall Street, the Dow Jones Industrial Average fell 3.09 points, or 0.01%, to 32,420.06, giving up early gains even as investors piled back into economically sensitive sectors on bets for a continuing US economic recovery, analysts said.
The Nasdaq Composite dropped 265.81 points, or 2.01%, to 12,961.89, while the S&P 500 lost 21.38 points, or 0.55%, to 3,889.14, unable to halt the prior day’s sell-off, as investors set aside economic optimism by Federal Reserve Chair Jerome Powell and treasury secretary Janet Yellen.
Remarks by the top two US economic officials mirrored what they told Congress the day before, with Powell saying on Wednesday the most likely case is 2021 will be “a very, very strong year." Powell said a round of post-pandemic price increases will not fuel a destructive breakout of inflation.
Banks plan to ask the government to foot the bill for the upcoming round of compound interest waivers, estimated to be ₹7,500 crore, following Tuesday’s Supreme Court ruling on the loan repayment moratorium. Paying from their pockets could dent the profitability of banks, said a person aware of the development.
MORE FROM THIS SECTIONSee All
TVS Motor Co. Ltd on Wednesday named former Jaguar Land Rover chief executive Ralf Speth as director, who will move up to become chairman in 2023.
In primary markets, two stocks will make debut today. The ₹660 crore IPO of Laxmi Organics was subscribed 107 time in a price band of ₹129-130 per share.
Craftsman Automation was sold in the price range of ₹1,488-1,490 per share and was subscribed 3.82 times.
US crude recently fell 0.72% to $60.74 per barrel and Brent was at $64.22, up 5.64% on the day.
The dollar index rose 0.196%, with the euro unchanged at $1.1812. Benchmark 10-year notes last rose 1/32 in price to yield 1.6102%, versus 1.614% late on Wednesday.
(Reuters contributed to the story)
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.