Pre Session – Bears may continue to haunt D-Street on global gloom
10/11/2015
The key Indian equity benchmarks are poised to extend a slide for a fourth straight session on Tuesday as concerns mount that the loss of the ruling BJP party in Bihar state elections may hinder Prime Minister Narendra Modi’s efforts to push through key bills in the Upper House of Parliament, such as the GST, that remain stuck due to political headwinds, slowing the reform process in Asia’s third biggest economy. A global sell-off amid fears over US policy tightening in the near-term and slowing Chinese inflation which signaled weakness in the world’s second biggest economy may also weigh on Dalal Street. Shares of Hindalco will be in focus today as the aluminium producer unveils its Q2 earnings numbers. Against the backdrop of a bearish trend in fellow Asian equities and a slide in US stocks overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which shed 0.78 per cent or 61 points at 7,868.50 at 10:47 am Singapore time, Dalal Street is set to witness a gap down opening on Tuesday. Marking a third straight session in the red, the 30-share Sensex on Monday fell by 143.84 points or by 0.55 per cent to end at 26,121.4 as the BJP’s loss in Bihar state polls soured investor mood.
Asian stocks succumbed to a sell-off as investors feared a US interest rate hike in December while tepid China inflation data signaled a worsening slowdown in Asia’s biggest economy. China’s Shanghai Composite fell while Hang Seng tumbled by over 1 per cent as China’s producer prices dropped for a 44th straight month in October while consumer price inflation slowed to 1.3 per cent from 1.6 per cent in September. Japan’s Nikkei 225 fell as the OECD cut its global economic growth forecasts for the second time in three months amidst an emerging market slowdown. The global economy is tipped to expand by 2.9 per cent in 2015, down from 3 per cent predicted earlier. Wall Street tumbled on Monday with benchmark S&P 500 plunging the most since September as concerns that the Fed will raise borrowing costs in December dimmed the lure for equities.
10/11/2015
The key Indian equity benchmarks are poised to extend a slide for a fourth straight session on Tuesday as concerns mount that the loss of the ruling BJP party in Bihar state elections may hinder Prime Minister Narendra Modi’s efforts to push through key bills in the Upper House of Parliament, such as the GST, that remain stuck due to political headwinds, slowing the reform process in Asia’s third biggest economy. A global sell-off amid fears over US policy tightening in the near-term and slowing Chinese inflation which signaled weakness in the world’s second biggest economy may also weigh on Dalal Street. Shares of Hindalco will be in focus today as the aluminium producer unveils its Q2 earnings numbers. Against the backdrop of a bearish trend in fellow Asian equities and a slide in US stocks overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which shed 0.78 per cent or 61 points at 7,868.50 at 10:47 am Singapore time, Dalal Street is set to witness a gap down opening on Tuesday. Marking a third straight session in the red, the 30-share Sensex on Monday fell by 143.84 points or by 0.55 per cent to end at 26,121.4 as the BJP’s loss in Bihar state polls soured investor mood.
Asian stocks succumbed to a sell-off as investors feared a US interest rate hike in December while tepid China inflation data signaled a worsening slowdown in Asia’s biggest economy. China’s Shanghai Composite fell while Hang Seng tumbled by over 1 per cent as China’s producer prices dropped for a 44th straight month in October while consumer price inflation slowed to 1.3 per cent from 1.6 per cent in September. Japan’s Nikkei 225 fell as the OECD cut its global economic growth forecasts for the second time in three months amidst an emerging market slowdown. The global economy is tipped to expand by 2.9 per cent in 2015, down from 3 per cent predicted earlier. Wall Street tumbled on Monday with benchmark S&P 500 plunging the most since September as concerns that the Fed will raise borrowing costs in December dimmed the lure for equities.
