MUMBAI: Indian stock markets will take inspiration from the Reserve Bank of India’s monetary policy statement on Wednesday, while SGX Nifty futures suggest a positive opening for domestic benchmarks.
On Tuesday, the BSE Sensex finished at 57,633.65, up 886.51 points or 1.56% and the Nifty was at 17,145.85, up 233.60 points or 1.38%.
The central bank is expected to largely keep interest rates intact as its comments on inflation and growth amid the emergence of the Omicron variant of covid-19 will be watched by investors.
Petchem’s major, Reliance Industries Ltd (RIL) has formed a $ 2 billion partnership with Abu Dhabi Chemicals Derivatives Company RSC Ltd (Ta’ziz) for the production of chemicals, the company said on Tuesday. The joint venture will build and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, with an investment of more than $ 2 billion.
FMCG Major Nestlé India said it has received government approval for the Production Incentive Program (PLI) for processed fruits and vegetables.
Hindustan Zinc Ltd announced a total of $ 1 billion in interim dividends to its shareholders. The company said its board of directors approved a dividend of ??18 per share – implying a dividend yield of 5.09% from its closing price on December 7.
Asian stocks extended their gains on Wednesday, continuing a rally of global relief as markets found positive news in early reports on the potential impact of the Omicron variant, although oil price hikes have started to sag. ‘breathless.
The largest MSCI index of Asia-Pacific equities excluding Japan rose 0.3% and Japan’s Nikkei rose 1%. US S&P 500 futures rose 0.25%.
UK drugmaker GSK has said its antibody-based covid-19 therapy with US partner Vir Biotechnology is effective against all mutations in the novel variant of the coronavirus Omicron.
In addition, a South African study suggested on Tuesday that booster doses of the covid-19 vaccine produced by Pfizer Inc and its partner BioNTech could help fend off Omicron infection, although it showed that the new strain can partially escape the protection of two vaccines. dose.
The reports helped the MSCI All Country World Index to close 2.1% higher on Tuesday, in its biggest percentage gain since November 2020. Oil also rose more than 3%.
Markets are also focusing on US CPI data, due Friday, with a higher reading likely to point policymakers towards accelerating the reduction of the Federal Reserve’s massive bond buying program which has put a floor below stock prices since the start of the pandemic.
Last week, Fed Chairman Jerome Powell said maybe it was time to stop viewing inflation as transient and hinted that the Fed could step up its reduction. This should support the dollar, especially against other currencies with more accommodating central banks.
The greenback was little changed on Wednesday against a basket of six major peers, although the Australian dollar extended its overnight gains to $ 0.7122, its highest in a week, after falling to a plus 13-month low due to concerns about Omicron and relatively accommodating behavior. FRX central bank.
The benchmark 10-year US Treasury yield edged down on Wednesday, but after two days of gains following better news about Omicron.
US crude fell 0.45% to $ 71.79 per barrel. Brent crude fell 0.44% to $ 75.11 a barrel.
Spot gold rose 0.3% to $ 1,789 an ounce, in its recent range, and its rival inflation hedge, bitcoin was also calm after an exciting weekend, barely changing to $ 50,600.
(Reuters contributed the story)
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