Pre Session – Bullish opening on the cards for Sensex on global rally
19/11/2015
The key domestic equity benchmarks are set to open on a strong note tracking a rally across markets in Asia and a surge in US equities overnight as traders weighed a fairly dovish US Federal Reserve minutes which signaled that while policy tightening may be appropriate in December, most policymakers from the world’s top central bank stressed on a gradual pace of rate hikes. The minutes also reaffirmed the Fed’s faith in the world’s biggest economy with most policymakers indicating that economic conditions for a maiden interest rate hike since 2006 will be met by the Fed’s upcoming meet in December. The Fed will meet next on December 16-17. Slow and steady pace of rate hikes would enable investors and consumers to respond to them and accordingly adjust to them. A surge in US payrolls in October and robust consumer spending has bolstered the case for a rate lift-off. Against the backdrop of a robust trend in global markets and strength in the CNX Nifty Index futures for November delivery which rallied 0.82 per cent or 63.5 points at 7,788.5 at 10:53 am Singapore time, Dalal Street is set to witness a gap up opening on Thursday. Snapping a two-day winning streak, the 30-share Sensex on Wednesday retreated to a near two-month low, shedding 381.95 points or 1.48 per cent to end at 25,482.52 on worries over a domestic slowdown amidst dismal Q2 earnings numbers, a reform impasse while fears over a deepening China slowdown hit metal stocks.
Asian stocks soared as the Fed sounded fairly dovish in the minutes of its latest meet, regarding the pace of rate hikes. China’s Shanghai Composite advanced as an upbeat US outlook bolstered the prospects for China’s exports, supporting the world’s second biggest economy which is battling heightened downside risks to growth. Hang Seng soared over 1 per cent, and so did Japan’s Nikkei 225 as the yen weakened ahead of a Bank of Japan meeting, bolstering the appeal of exporter stocks. On Wednesday, each of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 rallied well over 1 per cent after the Fed indicated a gradual pace of rate hikes.
19/11/2015
The key domestic equity benchmarks are set to open on a strong note tracking a rally across markets in Asia and a surge in US equities overnight as traders weighed a fairly dovish US Federal Reserve minutes which signaled that while policy tightening may be appropriate in December, most policymakers from the world’s top central bank stressed on a gradual pace of rate hikes. The minutes also reaffirmed the Fed’s faith in the world’s biggest economy with most policymakers indicating that economic conditions for a maiden interest rate hike since 2006 will be met by the Fed’s upcoming meet in December. The Fed will meet next on December 16-17. Slow and steady pace of rate hikes would enable investors and consumers to respond to them and accordingly adjust to them. A surge in US payrolls in October and robust consumer spending has bolstered the case for a rate lift-off. Against the backdrop of a robust trend in global markets and strength in the CNX Nifty Index futures for November delivery which rallied 0.82 per cent or 63.5 points at 7,788.5 at 10:53 am Singapore time, Dalal Street is set to witness a gap up opening on Thursday. Snapping a two-day winning streak, the 30-share Sensex on Wednesday retreated to a near two-month low, shedding 381.95 points or 1.48 per cent to end at 25,482.52 on worries over a domestic slowdown amidst dismal Q2 earnings numbers, a reform impasse while fears over a deepening China slowdown hit metal stocks.
Asian stocks soared as the Fed sounded fairly dovish in the minutes of its latest meet, regarding the pace of rate hikes. China’s Shanghai Composite advanced as an upbeat US outlook bolstered the prospects for China’s exports, supporting the world’s second biggest economy which is battling heightened downside risks to growth. Hang Seng soared over 1 per cent, and so did Japan’s Nikkei 225 as the yen weakened ahead of a Bank of Japan meeting, bolstering the appeal of exporter stocks. On Wednesday, each of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 rallied well over 1 per cent after the Fed indicated a gradual pace of rate hikes.