Pre Session – Bullish trend may continue at Dalal Street
23/11/2015
The key domestic equity benchmarks are likely to extend a two-day winning streak and open higher on Monday as investors pin their hopes on the green signal for key reforms such as the Goods & Services Tax (GST) in the Winter Session of Parliament which begins this Thursday. After the disappointment in the Bihar State Elections, the ruling NDA government has signaled its seriousness over re-starting the stalled reform process as it last week approved a 10 per cent stake stale in Coal India, gave the nod to the IPO of Cochin Shipyard and announced a five-year interest subsidy scheme for exporters. The government has a tough job on its hands in getting the GST bill that remains stuck due to political headwinds, passed in the Upper House of Parliament, where it lacks a majority. The CNX Nifty Index futures for November delivery rallied 0.33 per cent or 26 points at 7,877 at 10:56 am Singapore time, signaling a gap up opening for Sensex on Monday. Dalal Street may witness some volatility in the holiday-shortened week as traders roll over their positions amidst the November Futures & Options (F&O) expiry. Speculation that the US Federal Reserve may hike interest rates next month may continue to put pressure on foreign capital flows, weighing on Dalal Street. Foreign Portfolio Investors sold stocks worth Rs 2,464 crore last week as the Fed in its minutes signaled the possibility of a December rate hike. Marking its first gain in four weeks, the 30-share Sensex on Friday advanced 26.57 points or by 0.10 per cent to end at 25,868.49, ending higher for the second straight day even as top rating agencies warned that fiscal pressure may hit the country’s sovereign credit profile.
Major Asian stocks were trading mixed as traders anticipated a Fed rate hike next month. China’s Shanghai Composite climbed on the resumption of the IPO process after a five-month freeze on new share sales, Hang Seng fell while Japan’s Nikkei 225 was closed due to a holiday. Wall Street closed on a bullish note on Friday amidst speculation that the European Central Bank (ECB) may undertake additional monetary easing next month either by cutting its deposit rate or by boosting its bond buying program, or both
23/11/2015
The key domestic equity benchmarks are likely to extend a two-day winning streak and open higher on Monday as investors pin their hopes on the green signal for key reforms such as the Goods & Services Tax (GST) in the Winter Session of Parliament which begins this Thursday. After the disappointment in the Bihar State Elections, the ruling NDA government has signaled its seriousness over re-starting the stalled reform process as it last week approved a 10 per cent stake stale in Coal India, gave the nod to the IPO of Cochin Shipyard and announced a five-year interest subsidy scheme for exporters. The government has a tough job on its hands in getting the GST bill that remains stuck due to political headwinds, passed in the Upper House of Parliament, where it lacks a majority. The CNX Nifty Index futures for November delivery rallied 0.33 per cent or 26 points at 7,877 at 10:56 am Singapore time, signaling a gap up opening for Sensex on Monday. Dalal Street may witness some volatility in the holiday-shortened week as traders roll over their positions amidst the November Futures & Options (F&O) expiry. Speculation that the US Federal Reserve may hike interest rates next month may continue to put pressure on foreign capital flows, weighing on Dalal Street. Foreign Portfolio Investors sold stocks worth Rs 2,464 crore last week as the Fed in its minutes signaled the possibility of a December rate hike. Marking its first gain in four weeks, the 30-share Sensex on Friday advanced 26.57 points or by 0.10 per cent to end at 25,868.49, ending higher for the second straight day even as top rating agencies warned that fiscal pressure may hit the country’s sovereign credit profile.
Major Asian stocks were trading mixed as traders anticipated a Fed rate hike next month. China’s Shanghai Composite climbed on the resumption of the IPO process after a five-month freeze on new share sales, Hang Seng fell while Japan’s Nikkei 225 was closed due to a holiday. Wall Street closed on a bullish note on Friday amidst speculation that the European Central Bank (ECB) may undertake additional monetary easing next month either by cutting its deposit rate or by boosting its bond buying program, or both
