Pre Session-Gap down opening on the cards for Sensex on global sell-off
13/11/2015
The key Indian equity benchmarks are set to witness a negative opening today amidst a bearish trend across markets in Asia as traders across the globe brace for a maiden US interest rate hike in almost a decade, souring risk taking appetite. The stock of Coal India will be in focus as the state-run company unveils its Q2 earnings numbers. Further, a slowdown in industrial output growth to the lowest level in four months in September may signal a slight loss of momentum for Asia’s third biggest economy while a pickup in the pace of consumer inflation to a four-month high in October has probably crimped room for a further interest rate cut before the end of the ongoing fiscal. India’s industrial production expanded 3.6 per cent, year on year in September 2015, compared to a revised 6.2 per cent annual rise in August 2015, led by weakness in the manufacturing and consumer non-durables sectors. Consumer inflation, the RBI’s benchmark inflation gauge rose for the third month on the trot, accelerating to 5 per cent in October 2015 from 4.41 per cent in September 2015. Against the backdrop of a bearish trend in fellow Asian equities and a slide in US stocks overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which shed 0.48 per cent or 37 points at 7,774.50 at 10:47 am Singapore time, Dalal Street is set to witness a gap down opening on Friday. Snapping a five-day slump, the 30-share Sensex in Diwali Muhurat trading on Wednesday soared by 123.69 points or by 0.48 per cent to end at 25,866.95 as the government’s nod to ease FDI norms in 15 sectors signaled a renewed reform focus by the ruling BJP party which lost the elections in the state of Bihar.
Asian stocks fell today as a slowdown in credit growth in China and concerns over policy tightening in the US in the near-term dampened sentiment. China’s Shanghai Composite was trading lower while Hang Seng slid nearly 2 per cent after China's new local currency loans halved to 513.6 billion yuan in October from September, raising fears over a hard landing in the world’s second biggest economy. Japan’s Nikkei 225 plunged as a stronger yen curbed the appeal of exporter stocks and after Fed officials underlined the need for a cautious approach to policy tightening even as they made the case for a rate lift-off in December. US stocks tumbled the most in six weeks on Thursday as a commodity slump hit shares of raw material and energy producers while heightened concerns over US rate tightening also hit sentiment. The Dow Jones Industrial Average sank 1.44 per cent, the Nasdaq Composite slid 1.22 per cent and S&P 500 tumbled 1.4 per cent.
13/11/2015
The key Indian equity benchmarks are set to witness a negative opening today amidst a bearish trend across markets in Asia as traders across the globe brace for a maiden US interest rate hike in almost a decade, souring risk taking appetite. The stock of Coal India will be in focus as the state-run company unveils its Q2 earnings numbers. Further, a slowdown in industrial output growth to the lowest level in four months in September may signal a slight loss of momentum for Asia’s third biggest economy while a pickup in the pace of consumer inflation to a four-month high in October has probably crimped room for a further interest rate cut before the end of the ongoing fiscal. India’s industrial production expanded 3.6 per cent, year on year in September 2015, compared to a revised 6.2 per cent annual rise in August 2015, led by weakness in the manufacturing and consumer non-durables sectors. Consumer inflation, the RBI’s benchmark inflation gauge rose for the third month on the trot, accelerating to 5 per cent in October 2015 from 4.41 per cent in September 2015. Against the backdrop of a bearish trend in fellow Asian equities and a slide in US stocks overnight, coupled with weakness in the CNX Nifty Index futures for November delivery which shed 0.48 per cent or 37 points at 7,774.50 at 10:47 am Singapore time, Dalal Street is set to witness a gap down opening on Friday. Snapping a five-day slump, the 30-share Sensex in Diwali Muhurat trading on Wednesday soared by 123.69 points or by 0.48 per cent to end at 25,866.95 as the government’s nod to ease FDI norms in 15 sectors signaled a renewed reform focus by the ruling BJP party which lost the elections in the state of Bihar.
Asian stocks fell today as a slowdown in credit growth in China and concerns over policy tightening in the US in the near-term dampened sentiment. China’s Shanghai Composite was trading lower while Hang Seng slid nearly 2 per cent after China's new local currency loans halved to 513.6 billion yuan in October from September, raising fears over a hard landing in the world’s second biggest economy. Japan’s Nikkei 225 plunged as a stronger yen curbed the appeal of exporter stocks and after Fed officials underlined the need for a cautious approach to policy tightening even as they made the case for a rate lift-off in December. US stocks tumbled the most in six weeks on Thursday as a commodity slump hit shares of raw material and energy producers while heightened concerns over US rate tightening also hit sentiment. The Dow Jones Industrial Average sank 1.44 per cent, the Nasdaq Composite slid 1.22 per cent and S&P 500 tumbled 1.4 per cent.
