Pre Session- Sensex may snap 2-day winning streak on renewed global sell-off
21/09/2015
Indian equity benchmarks are poised to witness a gap down opening today with traders likely to resort to profit booking following a two-day run of gains, as uncertainty surrounding the global economic outlook rattled markets across Asia. Marking a second straight gain, the 30-share Sensex on Friday, rallied by 254.94 points or by 0.98 per cent to end at 26,218.91 while the rupee appreciated the most in two years against the US dollar, as traders heaved a sigh of relief, as concerns over capital outflows from emerging markets eased following the Fed verdict to refrain from an interest rate hike. However, three officials from the Fed over the weekend stressed that rate tightening was warranted this year amidst falling US unemployment and robust economic expansion which is likely to outweigh jitters from slower global growth and financial market turbulence, pulling down Asian stocks. Against the backdrop of negative cues from Asian stocks and a bearish finish at Wall Street on Friday, coupled with weakness in the SGX CNX Nifty Index futures for September delivery which declined by 0.75 per cent or 59.5 points at 7,908.50 at 10:38 am Singapore time, Dalal Street is set to open lower today. The Sensex may trade on a volatile note in the holiday-shorted week amid caution ahead of the expiry of the September Futures & Options (F&O) contracts on Thursday with the short-term market trend likely to be driven by the outcome of the RBI monetary policy meet on September 29.
On the Asian front, China’s Shanghai Composite extended its biggest weekly loss in a month amid worries that government efforts may not be enough to stave off a worsening slowdown in the world’s second biggest economy, while Hang Seng tumbled and Japanese stocks were closed today. Wall Street plunged on Friday, with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 tanking over 1 per cent as the Fed’s decision to hold rates, near zero sparked concerns over the health of the global economy.
21/09/2015
Indian equity benchmarks are poised to witness a gap down opening today with traders likely to resort to profit booking following a two-day run of gains, as uncertainty surrounding the global economic outlook rattled markets across Asia. Marking a second straight gain, the 30-share Sensex on Friday, rallied by 254.94 points or by 0.98 per cent to end at 26,218.91 while the rupee appreciated the most in two years against the US dollar, as traders heaved a sigh of relief, as concerns over capital outflows from emerging markets eased following the Fed verdict to refrain from an interest rate hike. However, three officials from the Fed over the weekend stressed that rate tightening was warranted this year amidst falling US unemployment and robust economic expansion which is likely to outweigh jitters from slower global growth and financial market turbulence, pulling down Asian stocks. Against the backdrop of negative cues from Asian stocks and a bearish finish at Wall Street on Friday, coupled with weakness in the SGX CNX Nifty Index futures for September delivery which declined by 0.75 per cent or 59.5 points at 7,908.50 at 10:38 am Singapore time, Dalal Street is set to open lower today. The Sensex may trade on a volatile note in the holiday-shorted week amid caution ahead of the expiry of the September Futures & Options (F&O) contracts on Thursday with the short-term market trend likely to be driven by the outcome of the RBI monetary policy meet on September 29.
On the Asian front, China’s Shanghai Composite extended its biggest weekly loss in a month amid worries that government efforts may not be enough to stave off a worsening slowdown in the world’s second biggest economy, while Hang Seng tumbled and Japanese stocks were closed today. Wall Street plunged on Friday, with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 tanking over 1 per cent as the Fed’s decision to hold rates, near zero sparked concerns over the health of the global economy.
