Pre Session- Bears may tighten grip on D-Street on global sell-off; RBI policy eyed
29/09/2015
Indian equity benchmarks may succumb to a steep global sell-off and witness a gap down opening on Tuesday as widespread concerns over China’s economy sour sentiment in risky assets, while traders eye the outcome of the monetary policy review of the Reserve Bank of India (RBI) in which the central bank may decide to make a fourth interest rate cut this year as inflation cools in Asia’s third biggest economy, offering policy easing room. The RBI, which has reduced its borrowing costs by an overall 75 basis points, may today cut interest rates by 25 basis points as a softening commodity price cycle pushed consumer inflation, the RBI’s benchmark inflation gauge to a low of 3.66 per cent in August 2015, the 12th straight month when the index has stayed below the 6 per cent target. The 30-share Sensex on Monday plunged 246.66 points or 0.95 per cent as tepid Chinese industrial profits numbers underscored concerns over a fast faltering China growth story while traders stuck to a cautious stance ahead of the RBI policy meet and weighed comments by Fed Chair Janet Yellen who last week stressed that the world’s top central bank remains on course for an interest rate lift-off this year. Against the backdrop of a plunge in Asian stocks and a severe sell-off at Wall Street overnight amid a China-related anxiety, coupled with a slump in the SGX CNX Nifty Index futures for October delivery which sank 1.56 per cent or 120 points at 7,713 at 10:41 am Singapore time, Dalal Street is set to dive deeper into the Bear terrain at the opening bell.
Asian stocks slid to almost the lowest level in three years as concerns over the world’s second biggest economy deepened before the start of the week-long trading holiday in mainland China. China’s industrial profits shrank the most in at least four years, down 8.8 per cent, year on year in August 2015 while Thursday’s manufacturing data is set to show a contraction. China’s Shanghai Composite slid over 1.2 per cent, Hang Seng tumbled over 3 per cent as it re-opened following Monday’s holiday and Japan’s Nikkei 225 shed over 2.7 per cent as a stronger yen curbed the appeal of exporter stocks. A rout in commodity and biotech stocks and deepening worries over China led to a broad sell-off at Wall Street on Monday with the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 sinking by 1.92 per cent, 3.04 per cent and 2.57 per cent, respectively.
29/09/2015
Indian equity benchmarks may succumb to a steep global sell-off and witness a gap down opening on Tuesday as widespread concerns over China’s economy sour sentiment in risky assets, while traders eye the outcome of the monetary policy review of the Reserve Bank of India (RBI) in which the central bank may decide to make a fourth interest rate cut this year as inflation cools in Asia’s third biggest economy, offering policy easing room. The RBI, which has reduced its borrowing costs by an overall 75 basis points, may today cut interest rates by 25 basis points as a softening commodity price cycle pushed consumer inflation, the RBI’s benchmark inflation gauge to a low of 3.66 per cent in August 2015, the 12th straight month when the index has stayed below the 6 per cent target. The 30-share Sensex on Monday plunged 246.66 points or 0.95 per cent as tepid Chinese industrial profits numbers underscored concerns over a fast faltering China growth story while traders stuck to a cautious stance ahead of the RBI policy meet and weighed comments by Fed Chair Janet Yellen who last week stressed that the world’s top central bank remains on course for an interest rate lift-off this year. Against the backdrop of a plunge in Asian stocks and a severe sell-off at Wall Street overnight amid a China-related anxiety, coupled with a slump in the SGX CNX Nifty Index futures for October delivery which sank 1.56 per cent or 120 points at 7,713 at 10:41 am Singapore time, Dalal Street is set to dive deeper into the Bear terrain at the opening bell.
Asian stocks slid to almost the lowest level in three years as concerns over the world’s second biggest economy deepened before the start of the week-long trading holiday in mainland China. China’s industrial profits shrank the most in at least four years, down 8.8 per cent, year on year in August 2015 while Thursday’s manufacturing data is set to show a contraction. China’s Shanghai Composite slid over 1.2 per cent, Hang Seng tumbled over 3 per cent as it re-opened following Monday’s holiday and Japan’s Nikkei 225 shed over 2.7 per cent as a stronger yen curbed the appeal of exporter stocks. A rout in commodity and biotech stocks and deepening worries over China led to a broad sell-off at Wall Street on Monday with the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 sinking by 1.92 per cent, 3.04 per cent and 2.57 per cent, respectively.
