Markets likely to consolidate; Maruti, TCS in focus

Indian markets are likely to consolidate on Thursday while trends in SGX Nifty suggest a weak opening for the benchmark share indices. On Wednesday, the BSE Sensex ended at 46,103.50, up 494.99 points or 1.09%. The Nifty closed at 13,529.10 gaining 136.15 points or 1.02%.

Asian markets are mixed on Thursday as investors tracked Brexit negotiations with significant economic implications in the US and Europe.

Also read: The pandemic push to the silver economy

On Wall Street, markets took a bit of a hit as investors awaited further news on economic stimulus and covid-19 vaccines. Ongoing negotiations between the British and European Union over the terms of Britain’s exit added another dash of uncertainty for investors.

In the US Congress continued talks on additional economic stimulus, with House lawmakers voting to pass a one-week stopgap funding bill to give more time for talks.

Meanwhile, British Prime Minister Boris Johnson warned the European Union on Wednesday it must scrap demands that he says are unacceptable if there is to be a Brexit trade deal to avoid a turbulent breakup in three weeks.

A recent run of optimism on the back of positive vaccine news took a hit after officials in Britain, the first Western nation to adopt a wide vaccination effort, cautioned that people with a history of significant allergic reactions responded adversely to the Pfizer vaccine.

India’s largest IT services firm Tata Consultancy Services (TCS) on Wednesday announced its share buyback programme worth up to 16,000-crore, which will commence on 18 December and close on 1 January, 2021.

The country’s largest carmaker Maruti Suzuki India will increase prices across its model range from January 2021.

The government has proposed to sell up to 20% equity shares of Indian Railway Catering and Tourism Corporation (IRCTC), in an offer for sale. The floor price for the offer is 1,367 per share.

The US dollar rose for the fourth straight session Wednesday, with the dollar up 0.16% against a basket of currencies to 91.065. Longer-term US Treasury yields rose on stimulus and vaccine hopes.

Oil futures were largely flat , while spot gold prices were down more than 2%, with the start of vaccine treatment reducing demand for the safe-haven investment.

(Reuters contributed to the story)

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