Markets can consolidate; banks, financial services stocks, focus on Tata Motors

MUMBAI: Markets are expected to consolidate on Tuesday as trends from SGX Nifty suggest a negative opening in Indian benchmarks. On Monday, the Sensex BSE closed at 52,551.53, up 76.77 points or 0.15% and the Nifty closed at 15,811.85, up 12.50 points or 0.08%.

Asian stocks traded mixed on Tuesday after their US counterparts closed at a record high and a bond rally stalled ahead of a key Federal Reserve meeting.

Japanese stocks gained, while Australian stocks outperformed after a holiday. References to Hong Kong and China have slipped as they also reopen after a hiatus on Monday.

US futures were little changed after gains in tech stocks pushed the S&P 500 to a close all-time high. Yet three stocks fell for each of which rose. The 10-year Treasury yield remained stable below 1.5% after rising on Monday. The dollar was flat.

Investors are on the lookout for signals from the Fed regarding an emergency monetary stimulus reduction schedule. The central bank is expected to reaffirm the pace of bond purchases this week, even if it provides projections for interest rate take-offs in 2023, according to economists polled by Bloomberg. The decision is expected Wednesday.

Microfinance institutions (MFIs) may have the freedom to set interest rates guided by a policy approved by the board of directors, as part of a proposal by the Reserve Bank of India (RBI) to review the regulatory framework that governs them. The proposal, if implemented, will end the existing regulatory cap on MFI interest rates.

The government will receive 1,426 crore dividend from Coal India Ltd (CIL) after the dry fuel miner on Monday announced an additional final dividend of 35% or 3.5 per share on the shares of 10 each, an official said.

Tata Motors said on Monday that its board of directors had approved a proposal to increase up to 500 crore by issuing securities on the basis of a private placement.

Shares of companies in the Adani group may continue to be the center of attention today after Monday’s crash, although she denied that the demat accounts of foreign funds that hold shares there were frozen.

Elsewhere, crude oil has climbed back above $ 71 a barrel, optimistic that economic reopenings will boost summer demand in the United States and Europe.

(Bloomberg contributed to the story)

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