Pre Session-Sensex may extend rally on diminishing Fed rate hike bets
05/10/2015
Indian equity benchmarks are poised to extend a three-day rally on Monday tracking bullish cues from markets across Asia as tepid US jobs data for September pushed back bets of a hike in interest rates by the US Federal Reserve, bolstering the lure for risk taking appetite. American employers added fewer than expected jobs in September while wages grinded to a halt and factory orders fell in August, a sign that the global financial rout has reached the shores of the world’s biggest economy, prompting the case for the Fed to delay tightening policy until next year. A delayed US rate hike may boost capital inflows into emerging markets including India. Against the backdrop of positive global cues and strength in the SGX CNX Nifty Index futures for October delivery which jumped 0.94 per cent or 75.5 points at 8,034 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today. Marking a third straight rally, the 30-share Sensex advanced 66.12 points or by 0.25 per cent to end at 26,220.95 on Thursday even as a gauge measuring India’s manufacturing activity slipped to the lowest level in seven months in September, signaling sluggishness in the country’s economy, justifying the RBI’s 50 bps rate cut in September. Traders will be eying the India services PMI on Tuesday which may offer further cues over the health of Asia’s third biggest economy. In August, the PMI had risen to 51.8 from 50.8 in July, with a reading above 50 signaling expansion. The next big cue for the market will be the September quarter earnings data with IT bellwether Infosys to set the ball rolling with its result announcement on October 12.
Asian markets surged today amid hopes that the Fed may put off tightening interest rates until next year after poor jobs data underscored weakness in the economy amidst a global turmoil. Non-farm payrolls in the US advanced by 142,000 in September, following a downwardly revised 136,000 gain in August from 173,000 reported earlier, while wages were little changed. While China’s Shanghai Composite remained closed due to holidays, Hang Seng surged over 1.7 per cent while Japan’s Nikkei 225 also logged gains of over 1 per cent on stimulus hopes from the Bank of Japan. On Friday, Wall Street jumped as each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 posted gains of over 1 per cent as downbeat jobs data raised hopes that the Fed may stick to lower rates for longer.
05/10/2015
Indian equity benchmarks are poised to extend a three-day rally on Monday tracking bullish cues from markets across Asia as tepid US jobs data for September pushed back bets of a hike in interest rates by the US Federal Reserve, bolstering the lure for risk taking appetite. American employers added fewer than expected jobs in September while wages grinded to a halt and factory orders fell in August, a sign that the global financial rout has reached the shores of the world’s biggest economy, prompting the case for the Fed to delay tightening policy until next year. A delayed US rate hike may boost capital inflows into emerging markets including India. Against the backdrop of positive global cues and strength in the SGX CNX Nifty Index futures for October delivery which jumped 0.94 per cent or 75.5 points at 8,034 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today. Marking a third straight rally, the 30-share Sensex advanced 66.12 points or by 0.25 per cent to end at 26,220.95 on Thursday even as a gauge measuring India’s manufacturing activity slipped to the lowest level in seven months in September, signaling sluggishness in the country’s economy, justifying the RBI’s 50 bps rate cut in September. Traders will be eying the India services PMI on Tuesday which may offer further cues over the health of Asia’s third biggest economy. In August, the PMI had risen to 51.8 from 50.8 in July, with a reading above 50 signaling expansion. The next big cue for the market will be the September quarter earnings data with IT bellwether Infosys to set the ball rolling with its result announcement on October 12.
Asian markets surged today amid hopes that the Fed may put off tightening interest rates until next year after poor jobs data underscored weakness in the economy amidst a global turmoil. Non-farm payrolls in the US advanced by 142,000 in September, following a downwardly revised 136,000 gain in August from 173,000 reported earlier, while wages were little changed. While China’s Shanghai Composite remained closed due to holidays, Hang Seng surged over 1.7 per cent while Japan’s Nikkei 225 also logged gains of over 1 per cent on stimulus hopes from the Bank of Japan. On Friday, Wall Street jumped as each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 posted gains of over 1 per cent as downbeat jobs data raised hopes that the Fed may stick to lower rates for longer.
