Markets likely to be volatile; RIL, Tata group stocks in focus
Markets are likely to be volatile on Monday while trends in SGX Nifty indicate a soft opening of Indian benchmark indices. On Friday, the BSE Sensex ended at 60,059.06, up 381.23 points or 0.64% while the Nifty was at 17,895.20, up 104.85 points or 0.59% .
Asian shares slipped on Monday as global inflation angst favoured commodities as a hedge over US equities, while rising US bond yields lifted the dollar to two-and-a-half year peaks against the Japanese yen.
Nasdaq futures and S&P 500 futures were both down around 0.5% in early trade, as oil prices extended their bull run. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%, and Australia 0.9%. Japan's Nikkei lost 0.5%, after shedding 2.5% last week. The focus will be on earnings, US inflation and retail sales data, and minutes of the Federal Reserve's last meeting which should confirm that a November tapering was discussed.
Reliance Industries Ltd on Sunday announced a brace of clean energy deals, including the acquisition of REC Solar Holdings AS (REC group) and Sterling & Wilson Solar Ltd, underscoring billionaire Mukesh Ambani’s ambitions to grow its renewable energy portfolio quickly.
Tata Consultancy Services (TCS) on Friday reported a 14.1% rise in consolidated net profit to ₹9,624 crore in the September 2021 quarter. The company had logged a net profit of ₹8,433 crore (excluding adjustment) in the year-ago period, TCS said in a regulatory filing. Its revenue grew 16.7% to ₹46,867 crore for the September 2021 quarter from ₹40,135 crore in the year-ago period.
Tata Group was named as the winning bidder for Air India. This will give the group full control of Air India and its low-cost unit Air India Express as well as a 50% stake in ground handling company Air India SATS Airport Services Pvt. Ltd (AISATS), according to a finance ministry statement.
Shares of Aditya Birla Sun Life AMC will make stock markets debut today. With a price band of ₹695 to ₹712, the issue was subscribed 5.25 times during share sale in 29 September-1 October.
While the headline US payrolls number on Friday disappointed, it was a partly due to reopening problems in state and local education while private sector employment was firmer.
Indeed, with a lack of labour driving the jobless rate down to 4.8%, investors were more concerned about the risk of wage inflation and pushed Treasury yields sharply higher. Yields on 10-year notes were trading up at 1.61%, having jumped 15 basis points last week in the biggest such rise since March. Bonds also sold off in Asia and Europe, with short-term yields in Britain hitting their highest since February 2020.
The dollar was underpinned as US yields outpaced those in Germany and Japan, lifting it to the highest since April 2019 on the yen at 112.27 The euro hovered at $1.1566 , having reached the lowest since July last year at $1.1527 last week. The dollar index held at 94.158, just off the recent top of 94.504.
The firmer dollar and higher yields has weighed on gold, which offers no fixed return, and left it sidelined at $1,753 an ounce .
Oil prices were up again after gaining 4% last week to the highest in almost seven years.
Brent climbed 25 cents to $82.64, while US crude rose 41 cents to $79.76 per barrel.