Premium| Listen to this article |
Markets are likely to be volatile on Friday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 59,919.69, down 433.13 points or 0.72% and Nifty was at 17,873.60, down 143.60 points or 0.80%.
Asian share prices advanced on Friday as a shock from a surprisingly strong US inflation reading ebbed, with investors now hopeful that the worst price hikes could be soon over.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7% to reach its highest level in two weeks while Japan's Nikkei gained 1.1%, helped by brisk earnings. US stock futures were up about 0.3% after a mixed session on Thursday when the S&P 500 ended 0.06% higher while tech-heavy Nasdaq rose 0.52%.
The world's stock prices posted their biggest fall in over a month on Wednesday following a surprisingly strong reading on US inflation.
The US consumer price index rose 6.2% year-on-year in October, the strongest advance since November 1990.
Among major companies, ONGC, Coal India, Hindalco, Tata Steel, Hero MotoCorp, Ashok Leyland, Vodafone Idea will release their September quarter results today.
Billionaire Gautam Adani on Thursday said his logistics-to-energy conglomerate will invest $70 billion over the next decade to become the world's largest renewable energy company and produce the cheapest hydrogen on the Earth.
Shares of Fino Payments Bank will make stock markets debut on Friday. The ₹1200 crore issue was subscribed 2 times in the price range of ₹560-577 a piece.
Bond yields ticked up, with the 10-year US Treasuries yield rising 1.9 basis points to 1.572% on Friday after a market holiday on Thursday.
Money markets have already priced in two rate hikes next year.
In the currency market, the dollar held firm after Wednesday's strong U.S. inflation reading fanned expectations the Fed would tighten monetary policy faster than previously thought. An index of the dollar against six other currencies rose to a 16-month high of 95.264 as the euro slipped to $1.1449, near its lowest since July last year.
The yen softened to 114.26 per dollar , near its four-year low hit last month while commodity currencies such as the Australian dollar and the Canadian dollar were on a back foot. The Australian dollar hit a five-week low of $0.7286 while the Canadian dollar slipped to C$1.2588 per dollar , a low last seen in early October.
Oil prices dipped slightly as the market grappled with a stronger US dollar along with concern over increasing US inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.
Brent crude futures were down 0.36% at $82.56 per barrel while U.S. West Texas Intermediate (WTI) futures dropped 0.33% to $81.32 per barrel.
Gold prices stayed near Wednesday's five-month highs as investors sought inflation hedges. They last stood at $1,862 per ounce , near Wednesday's high of $1,868.5.
(Reuters contributed to the story)
Never miss a story! Stay connected and informed with Mint. Download our App Now!!