Pre Session- Positive opening on the cards for Sensex as Fed refrains from rate hike
18/09/2015
Indian equity benchmarks are poised to witness a bullish opening on the last trading session of the week tracking a mostly positive trend across markets in Asia as the US Federal Reserve’s decision to hold interest rates near zero eased concerns over capital outflows from emerging markets, bolstering the appeal of risky assets. The world’s top central bank decided against raising interest rates at a two-day policy meet which concluded on Thursday, as the ongoing global financial market turmoil amid uncertainty surrounding China threatened to clip the wings of the American economy and suppress already soft inflation. With the Fed sticking to its ultra easy money policy stance, chances of an RBI interest rate cut on September 29 have brightened considerably, supporting Dalal Street. Against the backdrop of mostly positive cues from Asian stocks, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.47 per cent or 37.5 points at 7,978 at 10:29 am Singapore time, Dalal Street is set for a gap up opening today. The 30-share Sensex on Wednesday rallied by 258.04 points or by 1 per cent to end at 25,963.97 as traders remained focused on the outcome of the FOMC meet while hopes of further RBI policy easing also boosted the lure for equities. Stock markets were closed on Thursday on the occasion of Ganesh Chaturthi.
Most Asian stocks advanced after the Fed refrained from raising borrowing costs with Fed Chair Janet Yellen stressing that global developments overshadowed indications of strong progress in the world’s biggest economy. China’s Shanghai Composite which tumbled over 2 per cent on Thursday advanced on Friday even as traders remain concerned over the ability of the government to shore up the country’s stock markets as a slowdown deepens in the world’s second biggest economy. Hang Seng notched up impressive gains while Japan’s Nikkei 225 slipped over 1 per cent as a stronger yen curbed the lure for exporter stocks. On Thursday, US stocks ended mostly lower as the Fed’s decision not to raise interest rates signaled doubts over the health of the global economy with the world’s top central bank warning that turmoil in global markets threatens to restrain the US economy and exert further downward pressure on already low inflation.
18/09/2015
Indian equity benchmarks are poised to witness a bullish opening on the last trading session of the week tracking a mostly positive trend across markets in Asia as the US Federal Reserve’s decision to hold interest rates near zero eased concerns over capital outflows from emerging markets, bolstering the appeal of risky assets. The world’s top central bank decided against raising interest rates at a two-day policy meet which concluded on Thursday, as the ongoing global financial market turmoil amid uncertainty surrounding China threatened to clip the wings of the American economy and suppress already soft inflation. With the Fed sticking to its ultra easy money policy stance, chances of an RBI interest rate cut on September 29 have brightened considerably, supporting Dalal Street. Against the backdrop of mostly positive cues from Asian stocks, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.47 per cent or 37.5 points at 7,978 at 10:29 am Singapore time, Dalal Street is set for a gap up opening today. The 30-share Sensex on Wednesday rallied by 258.04 points or by 1 per cent to end at 25,963.97 as traders remained focused on the outcome of the FOMC meet while hopes of further RBI policy easing also boosted the lure for equities. Stock markets were closed on Thursday on the occasion of Ganesh Chaturthi.
Most Asian stocks advanced after the Fed refrained from raising borrowing costs with Fed Chair Janet Yellen stressing that global developments overshadowed indications of strong progress in the world’s biggest economy. China’s Shanghai Composite which tumbled over 2 per cent on Thursday advanced on Friday even as traders remain concerned over the ability of the government to shore up the country’s stock markets as a slowdown deepens in the world’s second biggest economy. Hang Seng notched up impressive gains while Japan’s Nikkei 225 slipped over 1 per cent as a stronger yen curbed the lure for exporter stocks. On Thursday, US stocks ended mostly lower as the Fed’s decision not to raise interest rates signaled doubts over the health of the global economy with the world’s top central bank warning that turmoil in global markets threatens to restrain the US economy and exert further downward pressure on already low inflation.
