Pre Session- Dalal Street set to open tad lower on weak Asia trend
27/11/2015
The Indian equity benchmarks may open marginally in the red on Friday amidst weakness in fellow Asian equities as a worsening slowdown in China sours the appetite for risky assets. The CNX Nifty Index futures for November delivery fell 0.06 per cent or 5 points at 7,928.5 at 10:31 am Singapore time, signaling a slight gap down opening for the Sensex today. However, the losses at Dalal Street may be curbed by optimism that the Modi government may be able to push through key economic policies in the Winter Session of Parliament that began on Thursday. Traders are hoping that the ruling NDA will be able to bring opposition parties on the same page with regards to the Goods & Services Tax (GST) bill and get it passed in the Upper House of Parliament, where it remains stuck due to uproar from political parties. The BJP’s loss in Bihar state elections had raised fears that the ability of the government to push through key legislations may be hindered, given that the party remains in minority in the Rajya Sabha. Caution ahead of India’s Q2 GDP data set for release on Monday may also weigh on the Sensex. Analysts expect Asia’s third biggest economy to have expanded by 7.3 per cent, year on year in the September 2015 quarter, up from the 7 per cent expansion in Q1 FY 2015-16. The 30-share Sensex soared by 182.89 points or by 0.71 per cent to end at 25,958.63 on Thursday as traders rolled over their positions on the day of the expiry of the November futures & options (F&O) contracts, while hopes of a breakthrough in the GST issue as the Winter Session of Parliament got underway, lifted the mood of Dalal Street traders.
Asian stocks fell on Friday as deepening worries over a China slowdown and heightened speculation of a Fed rate lift-off next month weighed on investor mood. China’s Shanghai Composite and Hang Seng declined as a drop in industrial profits in China signaled fears of a hard landing in the world’s second biggest economy. China’s industrial profits fell by 4.6 per cent, year on year in October 2015. Japan’s Nikkei 225 fell amidst fresh fears of deflation as consumer prices excluding fresh food declined 0.1 per cent in October 2015 from a year ago. Meanwhile, Wall Street was closed on Thursday due to the Thanksgiving Holiday.
