Pre Session- Sensex to open higher on upbeat GDP data, RBI meet eyed
01/12/2015 08:46
Indian equity benchmarks are poised to extend a three-day rally and witness a gap up opening on Tuesday as better than expected Q2 GDP numbers signaled optimism over the health of Asia’s third biggest economy, bolstering the lure for risky assets. The Indian economy grew by 7.4 per cent, year on year in the September 2015 quarter, beating analysts’ expectations of 7.3 per cent, and above the 7 per cent expansion registered in the June quarter. The focus will also be on the Reserve Bank of India (RBI) as it meets today for a policy review. With economic growth topping estimates, and consumer inflation picking up in recent months, the central bank is likely to maintain status quo on key interest rates after cutting them by 125 basis points so far in 2015, the most since 2009. With the Fed likely to raise borrowing costs in mid-December, the RBI may play safe for the next few months as it accesses the possible impact of a likely US interest rate lift-off on the Indian economy. Shares of rate sensitive sectors such as banks, realty, capital goods and auto companies will be in focus today. A bullish trend across Asia coupled with strength in the CNX Nifty Index futures for December delivery which rallied 0.16 per cent or 13 points at 7,992.5 at 10:53 am Singapore time, signals a positive opening for the Sensex on Tuesday. Marking a third straight rally, the 30-share Sensex on Monday closed up by 17.47 points or by 0.07 per cent to end at 26,145.67.
On the Asia front, markets were trading higher led by a rally in financial shares, while the IMF’s decision to add the yuan to its basket of reserve currencies boosted sentiment. China’s Shanghai Composite logged modest gains even as manufacturing shrank in November, signaling concerns over the world’s second biggest economy. An official China factory gauge fell to 49.6 in November from 49.8 in October, with a reading below 50 signaling contraction. Hang Seng soared by over 1 per cent and Japan’s Nikkei 225 rallied as a weaker yen boosted the appeal of exporter stocks. Wall Street witnessed a bearish closing on Monday as traders were cautious ahead of key economic events this week including the US jobs data and the European Central Bank (ECB) policy meet.
01/12/2015 08:46
Indian equity benchmarks are poised to extend a three-day rally and witness a gap up opening on Tuesday as better than expected Q2 GDP numbers signaled optimism over the health of Asia’s third biggest economy, bolstering the lure for risky assets. The Indian economy grew by 7.4 per cent, year on year in the September 2015 quarter, beating analysts’ expectations of 7.3 per cent, and above the 7 per cent expansion registered in the June quarter. The focus will also be on the Reserve Bank of India (RBI) as it meets today for a policy review. With economic growth topping estimates, and consumer inflation picking up in recent months, the central bank is likely to maintain status quo on key interest rates after cutting them by 125 basis points so far in 2015, the most since 2009. With the Fed likely to raise borrowing costs in mid-December, the RBI may play safe for the next few months as it accesses the possible impact of a likely US interest rate lift-off on the Indian economy. Shares of rate sensitive sectors such as banks, realty, capital goods and auto companies will be in focus today. A bullish trend across Asia coupled with strength in the CNX Nifty Index futures for December delivery which rallied 0.16 per cent or 13 points at 7,992.5 at 10:53 am Singapore time, signals a positive opening for the Sensex on Tuesday. Marking a third straight rally, the 30-share Sensex on Monday closed up by 17.47 points or by 0.07 per cent to end at 26,145.67.
On the Asia front, markets were trading higher led by a rally in financial shares, while the IMF’s decision to add the yuan to its basket of reserve currencies boosted sentiment. China’s Shanghai Composite logged modest gains even as manufacturing shrank in November, signaling concerns over the world’s second biggest economy. An official China factory gauge fell to 49.6 in November from 49.8 in October, with a reading below 50 signaling contraction. Hang Seng soared by over 1 per cent and Japan’s Nikkei 225 rallied as a weaker yen boosted the appeal of exporter stocks. Wall Street witnessed a bearish closing on Monday as traders were cautious ahead of key economic events this week including the US jobs data and the European Central Bank (ECB) policy meet.
