NEW DELHI: Markets are likely to struggle on Friday while trends in SGX Nifty suggest a weak opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 47,705.80, down 243.62 points or 0.51%. The Nifty was at 14,296.40, down 63.05 points or 0.44%.
Asian shares were mixed on Friday after the European Central Bank left policy unchanged, extending a rebound following a sharp selloff earlier in the week, but gains were capped as investors considered the impact of a possible U.S. capital gains tax hike.
The ECB’s decision to keep copious stimulus flowing came despite its prediction of a strong rebound in the euro zone economy from mid-year as covid-19 infections are brought under control.
But in a hit to stock market sentiment overnight, the administration of U.S. President Joe Biden was reported to be seeking an increase in the capital gains tax to near 40% for wealthy individuals, almost double the current rate. The Dow Jones Industrial Average ended down 0.94%.
In Asia on Friday morning MSCI’s broadest index of Asia-Pacific shares outside Japan shook off early small losses to rise 0.1%.
Tata Motors owned Jaguar Land Rover (JLR) on Thursday announced plans to suspend production at two of its plants in the UK due to COVID-19 pandemic-related supply chain disruptions, which have resulted in a shortage of automotive parts.
Some of the key companies which will announce March quarter results today are HCL Tech, M&M Financial and Indiabulls Real Estate.
Drug firm Gland Pharma on Thursday said it has received approval from the US health regulator for its generic Foscarnet Sodium injection indicated for treatment of cytomegalovirus retinitis in patients with AIDS.
In the currency market the euro edged up less than 0.1% on the day to $1.2023 after dipping a day earlier. The dollar was slightly lower against the yen at 107.92 and the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, fell 0.07% to 91.217.
The yield on benchmark 10-year Treasury notes was little changed at 1.554% after the capital gains tax reports pulled yields lower on Thursday.
U.S. crude rose 0.6% to $61.80 a barrel and global benchmark Brent crude added 0.47% to $65.71 per barrel. Spot gold rose about 0.3% to $1,789.18 per ounce.
(Reuters contributed to the story)