Pre Session- Sensex may open higher as F&O expiry eyed
26/11/2015 08:41
The key domestic equity benchmarks are poised to witness a gap up opening on Thursday ahead of the expiry of the November futures & options (F&O) contracts today, while traders are also pinning hopes on the Winter Session of Parliament where Prime Minister Narendra Modi will face a massive challenge as he resumes efforts to push through key economic policies. Against the backdrop of a rally in fellow Asian equities, coupled with strength in the CNX Nifty Index futures for November delivery which advanced 0.32 per cent or 25 points at 7,849 at 10:31 am Singapore time, the Sensex is set to witness a positive opening today. Volatility may remain high at the domestic bourses as traders roll over their positions on the final day of the November derivative contracts. The Winter Session of Parliament that begins today will be crucial for the BJP government to re-establish its credibility and get the reform process back on track following a dismal showing in the recently concluded Bihar State elections. With thin numbers in the Upper House of Parliament, Modi faces a daunting task to push through key reforms such as the Goods and Services Tax (GST) bill and the Land Bill that remain stuck in Parliament due to opposition uproar. While markets were closed on the occasion of Guru Nanak Jayanti on Wednesday, the 30-share Sensex on Tuesday marked its second straight finish in the red, declining by 43.6 points or by 0.17 per cent to end at 25,775.74 as caution gripped traders ahead of F&O expiry and the start of the Winter Session of Parliament.
Asian stocks rallied ahead of the Thanksgiving Holiday in the US while the focus remains firmly on US Fed policy meet next month in which a rate lift-off is quite likely. China’s Shanghai Composite was trading higher amidst optimism that China may speed up reform of state-run companies, Hang Seng surged over 1 per cent while Japan’s Nikkei 225 rallied as a weaker yen bolstered the appeal of exporter stocks. US equities ended little changed on Wednesday as traders weighed positive data that bolstered the case for the Fed to raise interest rates for the first time in almost a decade. Orders for US business equipment climbed in October, sales of new homes rebounded last month, consumer spending climbed in October, consumer confidence rose this month, private sector output accelerated in November and jobless claims fell last week
