Markets likely to be ranged; Reliance, Future, Vodafone in focus

Asian stocks were higher tracking US gains on Wednesday, as falling bond yields eased concerns about surging inflation

The speedier rollout of covid-19 vaccines in some countries and the planned $1.9 trillion US stimulus package helped underpin a brighter global economic outlook, the OECD said
 

Markets are likely to be rangebound on Wednesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Tuesday, the BSE Sensex ended at 51,025.48, up 584.41 points or 1.16%. The Nifty ended at 15,098.40, up 142.20 points or 0.95%.

Asian stocks were higher tracking US gains on Wednesday, as falling bond yields eased concerns about surging inflation, although focus will shift to Chinese markets amid worries about policy tightening in the world’s second-largest economy.

With eyes on the $120 billion auctions of 3-, 10- and 30-year treasuries this week, US treasury yields fell after a weak 7-year note sale that prompted a spike in yields two weeks ago was followed by another soft auction last week.

The yield on benchmark 10-year notes fell to 1.5281%, from 1.544% late on Tuesday. Tuesday’s auction of $58 billion in US 3-year notes was well received, with the next tests of investor appetite for government debt in the form of 10-year and 30-year auctions later this week.

The speedier rollout of covid-19 vaccines in some countries and the planned $1.9 trillion US stimulus package helped underpin a brighter global economic outlook, the Organisation for Economic Cooperation and Development said, as it raised its 2021 growth forecast.

Reliance Industries Ltd (RIL) has agreed to extend operational support to Future Retail Ltd to prevent its collapse while its ?24,713-crore deal to buy the cash-strapped retailer’s assets awaits approval from a company law tribunal, two people directly aware of the matter said. The National Company Law Tribunal (NCLT), which was due to announce its ruling on Tuesday, adjourned the case until 15 March.

Telecom operator Vodafone Idea is in advance stages of processing order for network capacity expansion in six circles through Chinese telecom gear makers, according to a PTI report.

The erstwhile promoters of Zandu Pharma, the Parikh family, will soon exit ZCL Chemicals Ltd, the active pharmaceutical ingredients (API) business, after selling a 74% stake in ZCL to private equity firm Advent International , said Nihar Parikh, executive director, ZCL Chemicals.

Reliance Jio Infocomm Ltd, the telecom arm of Reliance Industries Ltd, on Tuesday launched seven tariff plans to help micro, small and medium businesses (MSMBs) run their businesses. The bundled packages will comprise broadband, voice call, video conferencing and other digital applications.

In foreign exchange markets, the dollar index backed away from a 3-1/2-month high, allowing riskier currencies to move higher. The dollar index fell 0.415%, with the euro down 0.01% to $1.1897.

Oil prices backed off early highs in choppy trading, with Brent dipping back to the $68 mark as investors weighed easing concerns over a supply disruption in Saudi Arabia with the likelihood of limited supply from Opec+ output limits.

US crude futures settled at $64.01 per barrel, down $1.04 or 1.60%. Brent crude futures settled at $67.52 per barrel, down 72 cents or 1.06%.

Gold surged more than 2% on the retreat in US treasury yields and the weaker dollar, staging a strong recovery from the nine-month low it hit in the previous session.
 

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