Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.
Indian stocks are likely to consolidate on Wednesday while trends in SGX Nifty suggest a mildly positive opening for benchmark share indices. On Tuesday, the BSE Sensex ended at 51,329.08, down 19.69 points. The Nifty closed at 15,109.30 , down 6.50 points.
Asian stocks inched higher in early trade, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.
The earnings follow a slowdown in the global market rally on Tuesday as investors reconsidered how much government stimulus spending, easy money from central banks and vaccinations will boost stocks, oil and inflation.
On Wall Street, major stock indexes closed little changed, though the tech-heavy Nasdaq Composite eked out a record high on a gain of 0.14%. The S&P 500 lost 0.11% and the Dow Jones Industrial Average lost 0.03%.
The S&P had climbed the previous six sessions and is up 5.3% for the month. All three indexes closed at records on Monday.
Tata Steel Ltd shot past analysts’ estimates to report a profit of ?4,010 crore in the December quarter as demand and prices of the metal surged in India, although the company’s European operations continued to underperform. The fiscal third-quarter earnings are a significant turnaround for India’s second-largest steelmaker, which posted a loss of ?1,228 crore in the year-ago quarter. A Bloomberg poll of 15 analysts had estimated a profit of ?3,227.60 crore for the third quarter.
The government must look into the high reserve prices of 5G spectrum given the stress in the telecom sector and India’s ecosystem that is inadequate for a rollout, according to the report of a committee tabled in the Parliament on Monday.
Top companies which will announce December quarter earnings today are Titan Company, Eicher Motors, Hindalco Industries, Gail, Aurobindo Pharma and Gujarat State Petronet.
The dollar index fell 0.57% on Tuesday, led by losses against the yen and euro in choppy trade and hitting two-week lows.
The yield on the benchmark US 10-year Treasury notes was last at 1.16% after rising on Tuesday as high as 1.72% but falling back to the same level as on Monday.
Brent oil rose on Tuesday to $61.06 in the seventh straight session of gains, touching 13-month highs. Investors are betting that fuel demand will rise while OPEC and allied producers keep a lid on supply.
Spot gold added 0.1% to $1,838.09 an ounce after rising to a one-week high on Tuesday.
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