Asian shares fell and US stock futures were steady on Tuesday as caution ahead of a US Federal Reserve meeting and a slew of corporate earnings offset growing optimism about the global economic recovery from the covid-19 blow
Mumbai: Indian equity markets are likely to trade in a range on Tuesday, while trends in SGX Nifty suggest a flat opening for domestic benchmark indices. On Monday, the BSE Sensex ended at 48,386.51, up 508.06 points or 1.06%. The Nifty closed at 14,485, up 143.65 points or 1%.
Asian shares fell and US stock futures were steady on Tuesday as caution ahead of a US Federal Reserve meeting and a slew of corporate earnings offset growing optimism about the global economic recovery from the covid-19 blow.
Oil rebounded in Asian trading after major oil producers stood by their demand forecasts, but there are still downside risks due to surging covid-19 cases in India, the world's third-biggest oil importer.
However, despite the hopeful signs, a bullish session on Wall Street failed to inspire Asian markets. The S&P 500 and Nasdaq closed at record highs on Monday, fuelled by heavyweight growth stocks ahead of a deluge of earnings reports this week. The Dow Jones Industrial Average ended 0.18% lower.
Sentiment for equities in many markets has improved steadily this month due to expectations that rising vaccination rates will allow more economies to resume normal activity. However, one area of concern is India, which is struggling with a surge of coronavirus infections that has overwhelmed its healthcare system.
Many investors stick to the sidelines ahead of a Fed meeting ending Wednesday, where the U.S. central bank is expected to confirm that it will maintain its easy monetary policy to bolster the economy.
The US will begin sharing its entire pipeline of vaccines from AstraZeneca once the vaccine clear federal safety reviews, the White House said, with as many as 60 million doses expected to be available for export in the coming months.
In India, key companies that will announce March quarter results today are Axis Bank, Maruti Suzuki, Bajaj Finance, Britannia Industries, HDFC Asset Management Company, Nippon Life India Asset Management,
Tata Motors will be in focus as the carmaker has said that the lockdown enforced in various parts of the country is expected to impact vehicle demand temporarily. Hence, the company has set in motion a comprehensive 'Business Agility Plan' to protect and serve the interests of its customers, dealers, and suppliers.
Bond traders are also closely watching an auction of $62-billion of seven-year US Treasuries later on Tuesday.
The Treasury saw very weak demand at a seven-year debt auction in February, which sparked a brutal market selloff across the globe. The notes also saw tepid, albeit improved, demand in March.
Ahead of the auction results, seven-year yields edged up to 1.2689%, while benchmark 10-year yields rose slightly to 1.5755%.
The dollar was hemmed into a narrow range as traders avoided taking out big positions before the bond auction and Fed meeting.
The yen traded near a seven-week high against the dollar before a Bank of Japan meeting ending later on Tuesday. No major changes are expected, but policymakers are likely to cut their consumer price forecasts.
U.S. crude ticked up 0.26% to $62.07 a barrel, and Brent crude rose 0.29% to $65.84 per barrel, but the bounce in oil could be limited due to worries about the return of travel restriction in response to India's coronavirus surge.
Source:-https://www.livemint.com/market/stock-market-news/markets-seen-flat-ahead-of-us-fed-meet-tata-motors-axis-bank-maruti-in-focus-11619491181324.html
