Pre Session- Gap up opening seen for Sensex on global rebound; IIP data eyed
11/09/2015
Indian equity benchmarks are set to witness a positive opening on the last trading session of the week as strength across most markets in Asia and a bullish finish at Wall Street overnight amid bets that the US Federal Reserve may refrain from an interest rate hike next week, bolsters the appetite for risky assets. On the domestic front, all eyes will be fixated on the July IIP data set for release after market hours, and may signal that Asia’s third biggest economy remains on a strong footing. India’s industrial production probably expanded 3.5 per cent in July 2015 from the same month a year ago, compared to an annual 3.8 per cent increase in June 2015. Meanwhile, S&P’s decision to downgrade Brazil’s sovereign credit rating to junk status may hit Indian companies with significant exposure to the Latin American country especially those from the healthcare sector such as Torrent Pharma, Glenmark Pharma, Cadila Healthcare and Lupin. However, experts are of the view that India will continue to remain a global outperformer with the country’s macro fundamentals in much better shape than its BRICS peers, despite the worsening global outlook. Against the backdrop of a positive trend in most markets across Asia and a rally at Wall Street overnight, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.28 per cent or 22 points at 7,842.50 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today. The 30-share Sensex on Thursday shed 97.41 points or by 0.38 per cent to end at 25,622.17 as mayhem across fellow Asian markets following a downgrade of Brazil’s credit rating & China’s growth forecasts by the S&P, coupled with weak data including deepening factory gate deflation in China and a slump in capital spending in Japan, rocked Dalal Street.
Most Asian stocks advanced with markets in China and Hong Kong posting impressive gains amid optimism that Chinese authorities remain committed to stabilize the country’s equity markets and ward off heightened volatility, easing concerns over slowing global growth. Japan’s Nikkei 225 was trading flat, with a negative bias amidst pessimism over the country’s economic outlook as a key gauge for capital spending fell for a second month in July. On Thursday, Wall Street advanced as reduced bets that the Fed will hike borrowing costs in September amidst the ongoing global financial market rout lifted sentiment. Meanwhile, the number of Americans who filed for claiming unemployment insurance benefits fell 6,000 to 275,000 last week, signaling strength in the labour market recovery of the world’s biggest economy.
11/09/2015
Indian equity benchmarks are set to witness a positive opening on the last trading session of the week as strength across most markets in Asia and a bullish finish at Wall Street overnight amid bets that the US Federal Reserve may refrain from an interest rate hike next week, bolsters the appetite for risky assets. On the domestic front, all eyes will be fixated on the July IIP data set for release after market hours, and may signal that Asia’s third biggest economy remains on a strong footing. India’s industrial production probably expanded 3.5 per cent in July 2015 from the same month a year ago, compared to an annual 3.8 per cent increase in June 2015. Meanwhile, S&P’s decision to downgrade Brazil’s sovereign credit rating to junk status may hit Indian companies with significant exposure to the Latin American country especially those from the healthcare sector such as Torrent Pharma, Glenmark Pharma, Cadila Healthcare and Lupin. However, experts are of the view that India will continue to remain a global outperformer with the country’s macro fundamentals in much better shape than its BRICS peers, despite the worsening global outlook. Against the backdrop of a positive trend in most markets across Asia and a rally at Wall Street overnight, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.28 per cent or 22 points at 7,842.50 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today. The 30-share Sensex on Thursday shed 97.41 points or by 0.38 per cent to end at 25,622.17 as mayhem across fellow Asian markets following a downgrade of Brazil’s credit rating & China’s growth forecasts by the S&P, coupled with weak data including deepening factory gate deflation in China and a slump in capital spending in Japan, rocked Dalal Street.
Most Asian stocks advanced with markets in China and Hong Kong posting impressive gains amid optimism that Chinese authorities remain committed to stabilize the country’s equity markets and ward off heightened volatility, easing concerns over slowing global growth. Japan’s Nikkei 225 was trading flat, with a negative bias amidst pessimism over the country’s economic outlook as a key gauge for capital spending fell for a second month in July. On Thursday, Wall Street advanced as reduced bets that the Fed will hike borrowing costs in September amidst the ongoing global financial market rout lifted sentiment. Meanwhile, the number of Americans who filed for claiming unemployment insurance benefits fell 6,000 to 275,000 last week, signaling strength in the labour market recovery of the world’s biggest economy.
