Opening Bell: Sensex, Nifty Open Higher Led By Banks
Indian stocks opened higher as investors saw no major surprises in the ruling Bharatiya Janata Party’s failure to win key states. The defeats were seen as having little impact on the grip of the Prime Minister Narendra Modi-led party over politics while the focus shifts to the government’s efforts to control the pandemic.
The S&P BSE Sensex rose as much as 0.6% to 48,996.53, while the NSE Nifty 50 Index gained a similar magnitude. Seventeen out of the 19 sector sub-indices compiled by BSE Ltd. rose, led by a gauge of metal stocks. The S&P BSE Fast Moving Consumer Goods was the worst performing, down 0.2%.
There is limited significance from these results for the next national elections, which aren’t due until 2024, analysts at Jefferies India Pvt. Ltd. wrote in a note. The next important election will be Uttar Pradesh, among the most politically important states in the country, which will vote in May next year, they added.
Rupee Bond Traders To Await $2 Billion State-Debt Sale
Indian sovereign bond investors will watch demand at a Rs 14,900 crore ($2 billion) sale of state debt. Rupee traders will watch whether forward premiums will ease after the sharp surge seen on Monday.
- USD/INR near-term forward premiums surged on Monday amid a glut of dollars in the banking system, with traders citing inflows related to PowerGrid InvIT IPO for which foreign funds may have sold dollars in spot and taken a contrary position in forwards
- The second, much deadlier wave of virus infections in India is likely to cause further rupee weakness until September, according to Bloomberg Economics’ forecasting model
- 10-year bond yields fell 3bps to 6%; yields dropped after the reported deals segment showed Rs 3100 crore of 10-year changed hands, leading traders to suspect RBI intervention
SGX Nifty Slips Amid Weak Asian Cues
Asian stocks were mixed and U.S. equity futures retreated Tuesday in the wake of a dip in technology giants on Wall Street.
South Korean shares edged down while Hong Kong fluctuated and Australia rose modestly. Trading will be limited with Japan and China among markets closed for holidays.
India’s SGX Nifty 50 Index futures for May delivery fell 0.3% to 14,645.50, while MSCI Asia Pacific Index -0.1%. The NSE Nifty 50 Index little changed Monday at 14,634.15.
Ten-year Treasury yields dropped back to around 1.6% amid comments from Federal Reserve Chair Jerome Powell that the economic recovery is patchy.
A gauge of commodity prices is at the highest level since 2012. Silver is among the precious metals that have rallied as the prospect of near-zero rates for longer boosts demand. Oil was steady after climbing over 1%. Digital token Ether extended its surge to set another record.
Back home, L&T Technology, Tata Chemicals may react as the companies reported quarterly results after the market closed Monday. Adani Ports, RBL Bank, L&T Infotech, Alembic Pharma, Adani Total are among the companies scheduled to report earnings Tuesday. Foreign investors sold net Rs 3150 crore of stocks on April 30, according to the NSDL website.