Markets can prolong the rally; InterGlobe Aviation, focus on banking stocks
MUMBAI: Markets are expected to extend their rally on Tuesday as SGX Nifty trends suggest a positive opening in Indian benchmarks. On Monday, 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 higher on Tuesday, sailing in the wake of a record overnight gauge in global stock markets, with investors hoping for hints of inflation and monetary policy later in a week full of meetings and dots key data from central banks.
The upward momentum comes as G7 countries struck a landmark deal on Saturday to support a minimum global corporate tax rate of at least 15%, raising shares of tech giants like Microsoft and Facebook as their future tax obligations become more predictable.
The European Central Bank is due to hold its monetary policy meeting on Thursday, the same day that the U.S. Consumer Price Index is released, potentially fueling discussions over debt reduction by the Federal Reserve. In Asia, data on inflation in China is due on Wednesday.
Among the key companies that will report their March quarter results today are Petronet LNG, Max Financial Services, Suven Pharmaceuticals, Prestige Estates Projects, Galaxy Surfactants, Engineers India, Bajaj Hindusthan Sugars, Wonderla Holidays and Titagarh Wagons.
IndiGo, India’s largest domestic carrier, operated by InterGlobe Aviation Ltd, hopes to increase ₹4,500 crore by securing lines of credit from lenders and entering into a sale-leaseback agreement (SLB) for new aircraft as he expects further deterioration in revenues and consumption of cash in the quarter June, the company’s chief financial officer Jiten Chopra said on Monday.
The lenders decided to initially transfer 22 bad debt accounts from ₹89,000 crore to the National Asset Reconstruction Company Ltd. (NARCL), which helped clean up their balance sheets, according to a Mint report.
The Securities and Exchange Board of India (Sebi) on Monday banned Franklin Templeton Asset Management (India) Pvt. Ltd to offer debt plans for two years and ordered it to reimburse management and advisory fees totaling ₹512 crore out of six debt programs closed for breaking regulations by shutting them down.
Oil prices lost more ground on Tuesday as concerns over the fragile state of the global recovery in crude and fuel demand were bolstered by data showing that China’s oil imports fell in May. .
Brent crude fell 11 cents, or 0.2%, to $ 71.38 a barrel after falling 0.6% overnight. US oil fell 13 cents, or 0.2%, to $ 69.10 a barrel, after falling 0.6% in the previous session. Read more
Gold prices hovered near the key level of $ 1,900 an ounce, supported by a weaker dollar and lower bond yields. Spot gold gained 0.15% to reach $ 1,902.25 an ounce.
(Reuters contributed to the story)
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