Pre Session –Gap down opening seen for Sensex on global sell-off
24/11/2015
The key Indian equity benchmarks are tipped to extend Monday’s losses and open lower today tracking a bearish global trend while a continued exodus of foreign investors amid concerns that the BJP’s loss in Bihar may crimp its ability to push through key reforms such as GST to bolster Asia’s third biggest economy , may also sour sentiment at Dalal Street. Foreign Investors were net sellers of Indian equities for an eighth straight day on November 20, marking the longest selloff since September. International Investors have sold Indian stocks worth USD 672 million in November thus far, the most among emerging markets after South Korea. Speculation of an imminent interest rate hike by the US Federal Reserve has also curbed the lure for risky emerging market assets. Volatility may remain high at the domestic bourses ahead of the expiry of the November Futures & Options (F&O) contracts on Thursday, while caution ahead of the start of the Winter Session of Parliament from Thursday may also weigh on the Sensex. Shares of PSU banks may see some positive trade after Finance Minister Arun Jaitley vowed measures to relieve stress of state-run lenders that are battling high NPAs. Against the backdrop of weakness in fellow Asian equities and a bearish finish at Wall Street overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which fell 0.32 per cent or 25 points at 7,826.5 at 10:43 am Singapore time, the Sensex is set to witness a gap down opening on Tuesday. Snapping a two-day run of gains, the 30-share Sensex on Monday fell by 49.15 points or by 0.19 per cent to end at 25,819.34 as traders resorted to a cautious approach ahead of the Winter Session of Parliament which begins later this week that may decide the fate of the crucial GST bill, as doubts arise over the Modi government’s ability to push through key economic policies following the Bihar election disaster.
Asian stocks were trading in the red as a continued commodity rout hit shares of raw material producers while an increased likelihood of a rate hike by the Fed in December also curbed risk taking appetite. China’s Shanghai Composite was trading lower, extending Monday’s decline amidst weakness in shares of metal producers & industrial companies, while fears that traders may sell existing shares to garner funds to take part in the next round of IPOs also hit sentiment. Hang Seng fell while Japan’s Nikkei 225 swung to slim losses as it reopened after a holiday. Wall Street ended lower on Monday after sales of previously owned homes in the US fell in October, raising concerns over the outlook for the world’s biggest economy even as the Fed gets ready to lift interest rates for the first time in almost a decade.
24/11/2015
The key Indian equity benchmarks are tipped to extend Monday’s losses and open lower today tracking a bearish global trend while a continued exodus of foreign investors amid concerns that the BJP’s loss in Bihar may crimp its ability to push through key reforms such as GST to bolster Asia’s third biggest economy , may also sour sentiment at Dalal Street. Foreign Investors were net sellers of Indian equities for an eighth straight day on November 20, marking the longest selloff since September. International Investors have sold Indian stocks worth USD 672 million in November thus far, the most among emerging markets after South Korea. Speculation of an imminent interest rate hike by the US Federal Reserve has also curbed the lure for risky emerging market assets. Volatility may remain high at the domestic bourses ahead of the expiry of the November Futures & Options (F&O) contracts on Thursday, while caution ahead of the start of the Winter Session of Parliament from Thursday may also weigh on the Sensex. Shares of PSU banks may see some positive trade after Finance Minister Arun Jaitley vowed measures to relieve stress of state-run lenders that are battling high NPAs. Against the backdrop of weakness in fellow Asian equities and a bearish finish at Wall Street overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which fell 0.32 per cent or 25 points at 7,826.5 at 10:43 am Singapore time, the Sensex is set to witness a gap down opening on Tuesday. Snapping a two-day run of gains, the 30-share Sensex on Monday fell by 49.15 points or by 0.19 per cent to end at 25,819.34 as traders resorted to a cautious approach ahead of the Winter Session of Parliament which begins later this week that may decide the fate of the crucial GST bill, as doubts arise over the Modi government’s ability to push through key economic policies following the Bihar election disaster.
Asian stocks were trading in the red as a continued commodity rout hit shares of raw material producers while an increased likelihood of a rate hike by the Fed in December also curbed risk taking appetite. China’s Shanghai Composite was trading lower, extending Monday’s decline amidst weakness in shares of metal producers & industrial companies, while fears that traders may sell existing shares to garner funds to take part in the next round of IPOs also hit sentiment. Hang Seng fell while Japan’s Nikkei 225 swung to slim losses as it reopened after a holiday. Wall Street ended lower on Monday after sales of previously owned homes in the US fell in October, raising concerns over the outlook for the world’s biggest economy even as the Fed gets ready to lift interest rates for the first time in almost a decade.
