Pre Session- Sensex may witness cautious start on weak global cues
28/01/2015
28/01/2015
The key domestic benchmarks are likely to witness a subdued opening
today tracking weakness in fellow Asian markets and a bearish finish at Wall
Street overnight as disappointing US corporate earnings numbers including from
the likes of Caterpillar and Microsoft and tepid durable goods orders data
raised doubts over the health of the world’s biggest economy, sapping the
appetite for risky assets. Further, caution ahead of the outcome of the US
Federal Reserve’s two-day policy meet today may also weigh on sentiment. The Fed
in December indicated that it may not raise borrowing costs until at least end
April. China’s Shanghai Composite fell for a second day on the trot led by
declines in property developers and coal companies; Hang Seng was trading lower
while Japan’s Nikkei 225 logged slim losses as a stronger yen dimmed the appeal
of exporter stocks. Back home, the Sensex may retreat from a record high as
investors resort to profit booking after eight straight days of gains. However,
optimism over growth in Asia’s third biggest economy amid hopes of continued
reforms from the Modi government will continue to offer support to the domestic
stock market.
