Equities may continue to consolidate; Nestle India Q4 eyed
Shares of Tata Motors and Sun Pharma might be under strain today after both companies reported weak third quarter earnings near market closing hour Tuesday. Tata Motors‘ Q3 profit tanked 96 percent on weak JLR operational numbers while Sun Pharma Q3 was dragged down by slowdown in US & India sales.
Indian equities are likely to continue consolidating on lack of any major fresh triggers. SGX Nifty was trading 10.50 points down at 8831.50 at 7.35 AM.
On Monday, the 50-share Nifty slipped below the 8,800-mark while the Sensex ended 12 points lower.
Shares of Tata Motors and Sun Pharma might continue be under strain today after both companies reported weak third quarter earnings just before market closing Tuesday. Tata Motors’ posted a dismally weak Q3 with profit tanking 96 percent on weak JLR operational numbers. The stock dipped close to 4 percent Tuesday.
Sun Pharma also put up a poor Q3 show dragged down by slowdown in US & India sales.
Asian markets were mostly trading higher with Japan trading over a percent higher and Hang Seng rising little short of a percent.
US markets also closed higher Tuesday, posting new record highs, as investors digested testimony from Federal Reserve Chair Janet Yellen before the Congress that waiting too long to hike interest rates would not be wise, suggesting that the Fed may hike rates in its upcoming policy
The S&P 500 gained 0.4 percent, with financials outperforming, notching its 15th record close since November 8. US treasury yields ticked higher with the benchmark 10-year note yields trading around 2.47 percent.
European markets closed mixed on a slew of corporate earnings. Basic resources and construction stocks were among the worst performers.
On the data front, UK inflation figures grew at their fastest pace last month since June 2014 on higher oil prices and the fall in the British currency
The US dollar rose to a three-week peak against a basket of major currencies as investors raised their outlook on a faster pace of US interest rate increases
In commodities, crude prices declined after American Petroleum Institute said US crude inventories rose 9.9 million barrels, far exceeding analysts' expectations for an increase of 3.5 million barrels.
Gold prices slipped to USD 1225 an ounce as a strong dollar weighed on prices.