Pre Session- Sensex poised to extend gains on global stock rebound
09/09/2015
Indian equity benchmarks are set to witness a positive opening on Wednesday as a return of global risk taking appetite amid optimism that China may succeed in maintaining stability in its equity markets bolsters sentiment at Dalal Street. Against the backdrop of a surge in Asian equities and a bullish finish at Wall Street overnight, coupled with hefty gains in the SGX CNX Nifty Index futures for September delivery which jumped by 1.45 per cent or 114 points at 7,850 at 10:50 am Singapore time, Dalal Street is set to witness a gap up opening today. Snapping a two-day run of losses, the 30-share Sensex on Tuesday rallied by a whopping 424.06 points or by 1.7 per cent to end at 25,317.87 driven by bargain buying in beaten down stocks, firmness in Chinese equities and a rebound in the rupee from a two-year low against the US dollar. Meanwhile, renewed optimism over reforms also lifted the outlook for Asia’s third biggest economy, as Prime Minister Narendra Modi vowed to push through the GST bill that has been hit by political roadblocks while stressing on the need for more steps to ease the business environment in the country. Some volatility may continue at domestic and international bourses in the near-term with traders across the globe eyeing the outcome of the US Federal Reserve’s upcoming monetary policy meet on September 16-17, where the world’s top central bank may drop some hints over when it plans to raise borrowing costs for the first time since 2006.
Asian stocks soared on Wednesday as signs of stability in Chinese stocks boosted sentiment across the region. Markets in mainland China were trading higher by about 1.8 per cent following up on yesterday’s nearly 3 per cent gain when speculation that state-backed funds purchased shares overshadowed dismal trade data which showed that exports slid for a second month in August while imports plunged more than expected, signaling a worsening slowdown in the world’s second biggest economy. Hang Seng spiked by over 2 per cent while Japan’s equities jumped by over 5.5 per cent as a weaker yen bolstered the appeal of exporter stocks as confidence in risky assets returned amidst a global stock market rally. Wall Street surged as traders returned from the Labour Day Holiday as signs of stability in Chinese equities sent the benchmark S&P 500 to its second biggest gain this year. Each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallied by over 2 per cent as US small business confidence & labour market conditions index improved in August, offering further evidence of a strengthening recovery in the world’s biggest economy.
09/09/2015
Indian equity benchmarks are set to witness a positive opening on Wednesday as a return of global risk taking appetite amid optimism that China may succeed in maintaining stability in its equity markets bolsters sentiment at Dalal Street. Against the backdrop of a surge in Asian equities and a bullish finish at Wall Street overnight, coupled with hefty gains in the SGX CNX Nifty Index futures for September delivery which jumped by 1.45 per cent or 114 points at 7,850 at 10:50 am Singapore time, Dalal Street is set to witness a gap up opening today. Snapping a two-day run of losses, the 30-share Sensex on Tuesday rallied by a whopping 424.06 points or by 1.7 per cent to end at 25,317.87 driven by bargain buying in beaten down stocks, firmness in Chinese equities and a rebound in the rupee from a two-year low against the US dollar. Meanwhile, renewed optimism over reforms also lifted the outlook for Asia’s third biggest economy, as Prime Minister Narendra Modi vowed to push through the GST bill that has been hit by political roadblocks while stressing on the need for more steps to ease the business environment in the country. Some volatility may continue at domestic and international bourses in the near-term with traders across the globe eyeing the outcome of the US Federal Reserve’s upcoming monetary policy meet on September 16-17, where the world’s top central bank may drop some hints over when it plans to raise borrowing costs for the first time since 2006.
Asian stocks soared on Wednesday as signs of stability in Chinese stocks boosted sentiment across the region. Markets in mainland China were trading higher by about 1.8 per cent following up on yesterday’s nearly 3 per cent gain when speculation that state-backed funds purchased shares overshadowed dismal trade data which showed that exports slid for a second month in August while imports plunged more than expected, signaling a worsening slowdown in the world’s second biggest economy. Hang Seng spiked by over 2 per cent while Japan’s equities jumped by over 5.5 per cent as a weaker yen bolstered the appeal of exporter stocks as confidence in risky assets returned amidst a global stock market rally. Wall Street surged as traders returned from the Labour Day Holiday as signs of stability in Chinese equities sent the benchmark S&P 500 to its second biggest gain this year. Each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallied by over 2 per cent as US small business confidence & labour market conditions index improved in August, offering further evidence of a strengthening recovery in the world’s biggest economy.
