Pre Session- Flat opening on the cards for D-Street as IMF cuts growth forecast
07/10/2015
The key Indian domestic benchmarks are poised to witness a flattish opening on Wednesday as investors resort to profit –booking after a five-day rally as a cut in economic growth projections by the International Monetary Fund (IMF) sours sentiment in risky assets. The Washington-based lender cut its growth forecast for Asia’s third biggest economy to 7.3 per cent from 7.5 per cent in FY 2015-16 predicted earlier but stressed that India’s growth prospects remain favourable; while the IMF’s global economic growth estimate was cut to 3.1 per cent for 2015 from 3.3 per cent earlier. Meanwhile, India’s services activity expanded at a weaker clip in the month of September as demand eased, signaling a slight loss of growth momentum. The Nikkei Business Activity Index, a gauge of services activity, fell from 51.8 in August to 51.3 in September, with a reading above 50 signaling expansion. However, investors will take comfort from Prime Minister Narendra Modi’s assurance that the stalled Goods and Services (GST) reform amidst Parliamentary logjam, will be rolled out in 2016, as he vowed to improve the investment climate in the country. Amidst mixed cues from fellow Asian peers, and flat trade in the SGX CNX Nifty Index futures for October delivery which were up 0.09 per cent or 7 points at 8,172 at 10:47 am Singapore time, Dalal Street may open little changed today. Marking a five-day rally, the 30-share Sensex on Tuesday climbed 147.33 points or by 0.55 per cent to end at 26,932.88 as hopes of a delay in US Fed policy tightening and the RBI’s aggressive rate cut last week continued to bolster sentiment.
Asian stocks were trading on a mixed note following a mostly bearish closing at Wall Street on Tuesday led by a sell-off in biotechnology shares, and a reduction in global growth forecasts by the IMF, which predicted that in 2016, the world economy may expand 3.6 per cent, down from 3.8 per cent previously estimated. While markets in mainland China remained closed for holidays, Hang Seng advanced but Japan’s Nikkei 225 fell ahead of a Bank of Japan policy decision in which the apex lender may announce further stimulus to prop up growth in the world’s third biggest economy.
07/10/2015
The key Indian domestic benchmarks are poised to witness a flattish opening on Wednesday as investors resort to profit –booking after a five-day rally as a cut in economic growth projections by the International Monetary Fund (IMF) sours sentiment in risky assets. The Washington-based lender cut its growth forecast for Asia’s third biggest economy to 7.3 per cent from 7.5 per cent in FY 2015-16 predicted earlier but stressed that India’s growth prospects remain favourable; while the IMF’s global economic growth estimate was cut to 3.1 per cent for 2015 from 3.3 per cent earlier. Meanwhile, India’s services activity expanded at a weaker clip in the month of September as demand eased, signaling a slight loss of growth momentum. The Nikkei Business Activity Index, a gauge of services activity, fell from 51.8 in August to 51.3 in September, with a reading above 50 signaling expansion. However, investors will take comfort from Prime Minister Narendra Modi’s assurance that the stalled Goods and Services (GST) reform amidst Parliamentary logjam, will be rolled out in 2016, as he vowed to improve the investment climate in the country. Amidst mixed cues from fellow Asian peers, and flat trade in the SGX CNX Nifty Index futures for October delivery which were up 0.09 per cent or 7 points at 8,172 at 10:47 am Singapore time, Dalal Street may open little changed today. Marking a five-day rally, the 30-share Sensex on Tuesday climbed 147.33 points or by 0.55 per cent to end at 26,932.88 as hopes of a delay in US Fed policy tightening and the RBI’s aggressive rate cut last week continued to bolster sentiment.
Asian stocks were trading on a mixed note following a mostly bearish closing at Wall Street on Tuesday led by a sell-off in biotechnology shares, and a reduction in global growth forecasts by the IMF, which predicted that in 2016, the world economy may expand 3.6 per cent, down from 3.8 per cent previously estimated. While markets in mainland China remained closed for holidays, Hang Seng advanced but Japan’s Nikkei 225 fell ahead of a Bank of Japan policy decision in which the apex lender may announce further stimulus to prop up growth in the world’s third biggest economy.
