PremiumMUMBAI: Markets are likely to stay higher on Wednesday while trends in SGX Nifty suggest a positive opening of Indian benchmark indices. On Tuesday, markets hit record high with the BSE Sensex at 53,823.36, up 872.73 points or 1.65%. The Nifty ended at 16,130.75, up 245.60 points or 1.55%.
Asian shares advanced to one-week highs on Wednesday, led largely by strong US corporate earnings, although the mood remained cautious as the rapidly spreading Delta variant of the coronavirus clouds the global economic outlook.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.1% to the highest since July 26. Japan's Nikkei was in the red as were Chinese shares with the blue-chip index off 0.2%.
Australian shares were a touch firmer but sentiment was marred by an unabating rise in Delta infections in Sydney, the country's biggest city.
Stronger-than-expected profits from US companies in recent weeks have ratcheted up already high Wall Street forecasts on how second-quarter earnings growth will look versus last year.
Analysts, however, cautioned about the rise in Delta infections of the coronavirus in Asia, with Chinese media reporting 31 provincial regions have warned residents against unnecessary travel in light of recent outbreaks.
China on Wednesday reported 96 new confirmed coronavirus cases for 3 August, of which 71 were locally transmitted.
The S&P 500 gained 0.8% to finish at 4,423.15 - another record closing high - while the Dow rose 0.8% and the Nasdaq added 0.6%.
Key companies which will announce June quarter results today are State Bank of India, Titan Company, Adani Green Energy, Godrej Consumer Products, Adani Total Gas, ICICI Lombard General Insurance Company, Bosch, Tata Communications and Hindustan Petroleum among others.
State-owned Punjab National Bank (PNB) on Tuesday said it never objected to the ₹4,000-crore PNB Housing Finance (PNBHFL)-Carlyle deal, but only asked the housing finance company to follow the directions of the Securities and Exchange Board of India (Sebi).
Gujarat State Petroleum Corp. Ltd (GSPC) has resumed the process of selling its hydrocarbon blocks to pare debt, said two people, seeking anonymity. GSPC is the flagship company of the group which is involved in exploration and production (E&P) of oil and gas. The state government owns 87% in GSPC.
Meanwhile, investors expect volatility to increase in August as more companies report earnings and the market hears from Federal Reserve officials in coming weeks. US non-farm payroll numbers are due on Friday.
The US dollar eased against the Japanese yen and Swiss franc as questions about slowing US economic growth and the Delta variant challenged risk appetite.
The dollar was near a two-month trough against the yen at 108.95. Against the Swiss Franc, the dollar hovered near its lowest since mid-June at $0.9038.
In commodities, Brent futures fell 20 cents to $72.21 a barrel. US crude settled down 32 cents at $70.24 a barrel.
Spot gold was flat at $1,810.4 an ounce.
(Reuters contributed to the story)
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