Markets likely to be ranged; Gail, Tata Motors, Videocon in focus

GAIL (India), Bata India, TeamLease Services, Star Cement, SH Kelkar & Company, Indian Metals & Ferro Alloys, and Bajaj Healthcare are among key companies that will announce their March quarter results today

Markets are likely to be ranged on Wednesday while trends in SGX Nifty suggest a marginally higher opening of Indian benchmark indices. On Tuesday, the BSE Sensex closed at 52,328.51 up 228.46 points or 0.44%. The Nifty was at 15,751.65, up 81.40 points or 0.52%.

Asian stocks opened mixed on Wednesday after US equities treaded water near a record ahead of key inflation data. The 10-year US Treasury yield opened steady after touching an intraday one-month low.

Shares slipped in Japan and South Korea and edged higher in Australia. US equity contracts were steady after the S&P 500 ended little changed just shy of its May 7 record close.

The World Bank on Tuesday slashed its FY22 growth forecast for India to 8.3% from the 10.1% pace it estimated in April, as an economic rebound in the early part of this year collapsed amid a devastating resurgence of coronavirus infections in Asia’s third-largest economy.

The Mumbai bench of the National Company Law Tribunal on Tuesday approved the resolution plan submitted by Anil Agarwal-owned Twin Star Technologies for acquiring Videocon Industries Ltd. Twin Star Technologies offered to pay ?2,962 crore against Videocon’s financial liabilities of around ?62,000 crore. Of the overall debt, 50% is accounted as debt, while the rest is in terms of a guarantee for Videocon Oil Ventures Ltd (VOVL).

Gail (India), Bata India, TeamLease Services, Star Cement, SH Kelkar & Company, Indian Metals & Ferro Alloys, and Bajaj Healthcare are among key companies that will announce their March quarter results today.

Tata Motors on Tuesday said it has incorporated a new subsidiary to provide end-to-end services of operating, repair, annual maintenance contracts (AMC) and fleet management services (FMS) for its product range, including electric vehicles.

The focus remains on Thursday’s report on US consumer prices, which may affect perceptions of when the Federal Reserve is likely to start discussions on tapering asset purchases. The dollar held an advance.

Traders will be alert for any repercussions after passage of a bill to invest almost $250 billion in bolstering US manufacturing and technology to meet the challenge from China. Regulators in the world’s second biggest economy have instructed major creditors of China Evergrande Group to conduct a fresh round of stress tests on their exposure to the world’s most indebted developer.

The debate over whether inflation will prove sticky and prompt central banks to pare stimulus earlier than expected remains key for investors. While volatility is evident in the speculative fringe, treasury yields have eased for three successive weeks. The overall picture suggests faith in the Fed’s assurances that price pressures will prove transitory.

Oil resumed its rally to top $70 a barrel in New York as investors grow more confident that the recovery from the pandemic will help demand. Bitcoin remains under pressure, trading below $33,500 after a retreat this week.
 

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