Pre Session- Gap up opening seen for Sensex on bargain buying
08/09/2015
Beaten down Indian equity benchmarks are poised to witness a positive opening on Tuesday as the sharp losses in recent sessions offer good bargain buying opportunity, in stocks, to investors and speculators, at existing levels. Marking a two-day losing streak, the 30-share Sensex on Monday plunged below the physiological mark of 25 K to hit a 15-month low as the rupee nosedived to a two-year low against the dollar as investors shunned risky assets amid global risk aversion on China’s worsening woes, while a slowdown in Asia’s third biggest economy also soured sentiment. The Sensex tumbled by 308.09 points or by 1.22 per cent to end at 24,893.81 on Monday following a massive 562.88 points dip on Friday. Amidst value buying opportunity, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.51 per cent or 38.5 points at 7,599.50 at 10:32 am Singapore time, Dalal Street is set to witness a gap up opening today. On the domestic front, traders will eye the April-June 2015 trade and current account deficit data to be released by the Reserve Bank of India (RBI) during market hours today. However, weakness in most Asian stocks which were trading in the red ahead of Chinese trade numbers, may trim gains at Dalal Street.
China’s Shanghai Composite which plunged more than 2.5 per cent yesterday when the country cut its 2014 economic growth rate to 7.3 per cent from 7.4 per cent extended losses as traders awaited the August trade data which will offer further cues over the health of the world’s second biggest economy. Hang Seng posted modest gains while Japan’s Nikkei 225 succumbed to a sell-off even as data showed a lower than estimated contraction in the country’s economy in the second quarter. The world’s third biggest economy shrank at an annualized pace of 1.2 per cent in the April-June quarter, compared to a previously reported 1.6 per cent. Wall Street was closed on Monday on account of the Labour Day Holiday.
08/09/2015
Beaten down Indian equity benchmarks are poised to witness a positive opening on Tuesday as the sharp losses in recent sessions offer good bargain buying opportunity, in stocks, to investors and speculators, at existing levels. Marking a two-day losing streak, the 30-share Sensex on Monday plunged below the physiological mark of 25 K to hit a 15-month low as the rupee nosedived to a two-year low against the dollar as investors shunned risky assets amid global risk aversion on China’s worsening woes, while a slowdown in Asia’s third biggest economy also soured sentiment. The Sensex tumbled by 308.09 points or by 1.22 per cent to end at 24,893.81 on Monday following a massive 562.88 points dip on Friday. Amidst value buying opportunity, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.51 per cent or 38.5 points at 7,599.50 at 10:32 am Singapore time, Dalal Street is set to witness a gap up opening today. On the domestic front, traders will eye the April-June 2015 trade and current account deficit data to be released by the Reserve Bank of India (RBI) during market hours today. However, weakness in most Asian stocks which were trading in the red ahead of Chinese trade numbers, may trim gains at Dalal Street.
China’s Shanghai Composite which plunged more than 2.5 per cent yesterday when the country cut its 2014 economic growth rate to 7.3 per cent from 7.4 per cent extended losses as traders awaited the August trade data which will offer further cues over the health of the world’s second biggest economy. Hang Seng posted modest gains while Japan’s Nikkei 225 succumbed to a sell-off even as data showed a lower than estimated contraction in the country’s economy in the second quarter. The world’s third biggest economy shrank at an annualized pace of 1.2 per cent in the April-June quarter, compared to a previously reported 1.6 per cent. Wall Street was closed on Monday on account of the Labour Day Holiday.
