Sensex, Nifty Seen Lower As Coal India Q4 Disappoints

Indian shares are poised to open lower on Tuesday after Coal India and Larsen & Toubro reported mixed quarterly results and the World Bank warned that demonetization may have slowed India’s economic growth sharply in 2016-17.

While Coal India’s Q4 net profit declined 38 percent from last year because of higher expenses, Larsen & Toubro reported a 28 percent growth in consolidated net profit for the March quarter, beating analysts’ expectations.

Benchmark indexes Sensex and the Nifty hit fresh record highs on Monday before giving up most gains to the end the session largely unchanged. The rupee weakened by 5 paise to close at 64.50 per dollar.

Asian stocks are trading mixed this morning amid thin volumes as markets in China and Hong Kong remain shut for public holidays.

Oil held gains near $50 a barrel and the yen rallied after a round of positive economic data while the euro slipped after ECB President Mario Draghi told European lawmakers in Brussels that the euro zone economy still needs a “fairly substantial amount” of monetary stimulus to restore stable inflation. Also, speculation is rife that Italy may head to the polls in the early autumn.

Investors keep an eye on the U.S. jobs report due this Friday, which may bolster the case for a rate hike on June 14.

European stocks ended marginally lower on Monday as oil extended last week’s drop and Italian banks came under selling pressure after reports that Intesa Sanpaolo is considering closing branches and cutting costs in a strategy shift.

The pan-European Stoxx Europe 600 index ended little changed with a negative bias and France’s CAC 40 index slid 0.1 percent while the German DAX rose 0.2 percent. The U.S. and U.K. markets were closed for a public holiday.

by RTT Staff Writer

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