Markets likely to be volatile; infrastructure stocks, Vodafone Idea in focus
Premium- Prime Minister Narendra Modi has unveiled plans to launch a ₹100 trillion integrated infrastructure scheme that would make the economy more competitive.
MUMBAI: Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a soft opening of Indian benchmark indices. On Friday, the BSE Sensex hit 55,000 for first time ending at 55,437.29, up 593.31 points or 1.08%. The Nifty was at 16,529.10, up 164.70 points or 1.01%.
Asian share markets made a cautious start to the week on Monday ahead of a raft of Chinese data that could confirm a slowdown in the giant economy, as much of the world races to stem the spread of the Delta variant of covid-19 with vaccinations.
Figures on retail sales, industrial production and urban investment are forecast to show a modest pullback in activity in China in July, a trend likely to be worsened by the recent tightening in coronavirus restrictions. There was some uncertainty about the possible geopolitical implications of the sudden collapse of the Afghan government and what it mean for political stability in the region.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade, having hit its lows for the year last month. Japan's Nikkei fell 1.2%, though economic growth pipped forecasts for the June quarter.
Prime Minister Narendra Modi on Sunday unveiled plans to launch a ₹100 trillion integrated infrastructure scheme that would make the economy more competitive. The PM Gati Shakti scheme is aimed at breaking the silos between road, rail, air and waterways to reduce travel time, improving industrial productivity, making manufacturing globally competitive, facilitating future economic zones and creating employment.
Four stocks, Devyani International, Krsnaa Diagnostics, Exxaro Tiles and Windlass Biotech, will make share markets debut today.
Debt-ridden private telecom company Vodafone Idea on Saturday posted consolidated loss of ₹7,319 crore for the first quarter ended on June 30, 2021, against ₹25,460 crore loss in the same quarter a year ago. The consolidated revenue from operations of Vodafone Idea (VIL) declined by about 14% to ₹9,152.3 crore during the reported quarter from ₹10,659.3 crore in the corresponding quarter of 2020-21. The total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30 stood at ₹1,91,590 crore, comprising of deferred spectrum payment obligations of ₹1,06,010 crore and adjusted gross revenue (AGR) liability of ₹62,180 crore that are due to the government.
Meanwhile, Wall Street had managed fresh records last week even as a survey showed a shock slump in US consumer sentiment to the lowest since 2011 amid Delta fears. The dismal report pulled 10-year Treasury yields down 8 basis points on Friday to leave them at 1.28%, erasing a week of steady increases.
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It also wiped out a week of gains for the dollar, sending it back to 92.517 against a basket of currencies from a near five-month top of 93.195.
The euro bounced to $1.1797 and away from major chart support at $1.1740, while the dollar recoiled to 109.51 yen from a peak of 110.79.
In commodity markets, gold extended its bounce to $1,779 in the wake of a sudden stop-loss tumble to $1,684 at the start of last week.
Oil prices eased in early trade partly on concerns coronavirus travel restrictions would hurt demand, particularly in China. Brent fell 28 cents to $70.31 a barrel, while U.S. crude lost 31 cents to $68.13.
(Reuters contributed to the story)
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