MARKETS: Tepid start likely; Auto stocks, RIL, RBL Bank, Future Retail eyed

LIVE market updates: The key benchmark indices are likely to start the new year on a tepid note, as per the indications from the SGX Nifty futures. As of 08:20 AM, the SGX Nifty January futures were quoted at 17,408, indicating a likely flat start for trade.

Among stocks, auto shares will be in focus after the companies announced robust sales data on Saturday.

RBL Bank may also be looked out for as rating agency ICRA has placed the bank’s long-term and medium-term ratings on watch with developing implications. Further, heavyweight Reliance may also be eyed as brokerage Morgan Stanley has reportedly given an overweight call on the company saying its new energy stack continues to fall in place as India progresses to decarbonisation target.

Besides, Future Retail has said that it has missed payments of Rs 39.49 bln to lenders following the one time debt restructuring plan and was therefore downgraded to default grade by Care Ratings.

Meanwhile, India’s growth in eight infrastructure sectors dipped to a nine-month low at 3.1 per cent in November on fears of an impending third wave of the pandemic.

That apart, given the fresh spike in Covid-19 cases, several states across the country have announced fresh curbs and travel related restrictions. On Sunday, the West Bengal government limited flights from Mumbai and Delhi to twice per week.

Global cues

The US markets on Friday ended trade on a tepid note. The Dow Jones and the S&P 500 were down 0.2 per cent and 0.3 per cent, respectively. Nasdaq was down 0.6 per cent.

In Asia, Hang Seng and Straits Times were up 0.4 per cent each, while Taiwan gained 0.7 per cent. Japan’s Nikkei and China’s Shanghai Composite were shut for New Year holidays.

Despite a decline on the last trading day of the year 2021, Crude Oil prices registered their best yearly gains for the year since 2015. On Friday, Brent Crude slipped 2.2 per cent to $77.78 a barrel, and WTI Crude dropped 2.3 per cent at $75.21 a barrel.

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