Pre Session- Positive opening on the cards for Sensex on global cues
22/09/2015
Indian equity benchmarks are set to open higher today tracking a firm trend in markets across Asia and a bullish finish at Wall Street overnight after top US Federal Reserve officials’ reassurance over the health of the world’s biggest economy bolstered risk taking appetite. The 30-share Sensex had snapped a two-day winning streak on Monday, falling 25.93 points or by 0.1 per cent to end at 26,192.98 as traders indulged in profit booking at existing levels, amid the recent sharp rally as the Fed’s decision last week to keep interest rates unchanged near zero fueled global economic growth concerns. Speculation that the RBI may cut interest rates at least by 25 basis points when it meets next on September 29 amidst cooling inflation and the Fed status quo may bolster investor sentiment. Against the backdrop of positive cues from Asian stocks, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.14 per cent or 11 points at 7,989 at 10:38 am Singapore time, Dalal Street is set for a gap up opening today. However, volatility may remain high at domestic bourses ahead of the September derivative contract expiry this Thursday, restricting gains at Dalal Street.
On the Asian front, markets rose following a rebound in US equities after top officials from the Fed stressed that the American economy is in strong shape to withstand rate tightening still very likely this year, as threat from abroad proves temporary. Shanghai Composite surged over 1 per cent, marking the third straight day of gains amid optimism over President Xi Jinping’s state visit to the US. Hang Seng advanced after a China leading index rose at a faster pace in August, up 1 per cent from July when it climbed 0.9 per cent, easing worries over a slowdown in the world’s second biggest economy. Japanese markets remained shut due to a holiday. US stocks ended higher on Monday after Fed officials signaled that strength in the domestic economy may overshadow worries over slowing global growth.
22/09/2015
Indian equity benchmarks are set to open higher today tracking a firm trend in markets across Asia and a bullish finish at Wall Street overnight after top US Federal Reserve officials’ reassurance over the health of the world’s biggest economy bolstered risk taking appetite. The 30-share Sensex had snapped a two-day winning streak on Monday, falling 25.93 points or by 0.1 per cent to end at 26,192.98 as traders indulged in profit booking at existing levels, amid the recent sharp rally as the Fed’s decision last week to keep interest rates unchanged near zero fueled global economic growth concerns. Speculation that the RBI may cut interest rates at least by 25 basis points when it meets next on September 29 amidst cooling inflation and the Fed status quo may bolster investor sentiment. Against the backdrop of positive cues from Asian stocks, coupled with strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.14 per cent or 11 points at 7,989 at 10:38 am Singapore time, Dalal Street is set for a gap up opening today. However, volatility may remain high at domestic bourses ahead of the September derivative contract expiry this Thursday, restricting gains at Dalal Street.
On the Asian front, markets rose following a rebound in US equities after top officials from the Fed stressed that the American economy is in strong shape to withstand rate tightening still very likely this year, as threat from abroad proves temporary. Shanghai Composite surged over 1 per cent, marking the third straight day of gains amid optimism over President Xi Jinping’s state visit to the US. Hang Seng advanced after a China leading index rose at a faster pace in August, up 1 per cent from July when it climbed 0.9 per cent, easing worries over a slowdown in the world’s second biggest economy. Japanese markets remained shut due to a holiday. US stocks ended higher on Monday after Fed officials signaled that strength in the domestic economy may overshadow worries over slowing global growth.
