Pre Session- Gap down opening seen for Sensex ahead of GDP data
30/11/2015 08:41
The key Indian equity indices are poised to open lower on Monday as traders resort to a cautious stance ahead of the September quarter GDP data set for release today which will offer further cues over the health of Asia’s third biggest economy. Analysts expect India’s 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. Meanwhile, caution ahead of the Reserve Bank of India’s (RBI) monetary policy meet on Tuesday may also weigh on sentiment. The central bank is likely to maintain status quo on key interest rates after cutting them by 125 basis points in 2015. A pickup in consumer inflation in recent months has left little room for further monetary easing in the ongoing fiscal while the RBI is also eying the Fed’s policy meet in mid-December to see whether the world’s biggest central bank finally raises interest rates for the first time in almost a decade. Traders will continue to eye developments related to the crucial GST bill in the ongoing Winter Session of Parliament. Shares of auto companies will be in focus this week as they begin reporting their November sales numbers from Tuesday. A mostly bearish trend in Asia, and weakness in the CNX Nifty Index futures for November delivery which fell 0.25 per cent or 20 points at 7,945 at 10:44 am Singapore time, signals a gap down opening for the Sensex on Monday. Marking a second straight rally, the 30-share Sensex on Friday advanced 169.57 points or by 0.65 per cent to end at 26,128.2 as optimism over a breakthrough in the GST saga after the Modi government invited the Congress party to discuss a compromise on the landmark fiscal bill that has been stuck in the Upper House of Parliament, where the BJP has very thin numbers, bolstered sentiment.
Asian stocks were trading mostly lower as traders were cautious ahead of key economic events this week including the US jobs data for November which may signal continued strength in the labour market of the world’s biggest economy, bolstering the case for a December rate hike, and the European Central Bank (ECB) policy meet with hopes building up for a stimulus boost. China’s Shanghai Composite extended a drop after posting its steepest loss in three months on Friday when a drop in industrial profits, fears that IPOs will lure away funds from existing shares and concerns over regulatory probes in the country’s top brokerages caused a severe sell-off. Hang Seng was trading with slim gains while Japan’s Nikkei 225 fell as industrial output in October grew less than estimated in October, raising concerns over the world’s third biggest economy, which slipped into recession last quarter. Wall Street closed little changed on Friday as energy shares declined
30/11/2015 08:41
The key Indian equity indices are poised to open lower on Monday as traders resort to a cautious stance ahead of the September quarter GDP data set for release today which will offer further cues over the health of Asia’s third biggest economy. Analysts expect India’s 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. Meanwhile, caution ahead of the Reserve Bank of India’s (RBI) monetary policy meet on Tuesday may also weigh on sentiment. The central bank is likely to maintain status quo on key interest rates after cutting them by 125 basis points in 2015. A pickup in consumer inflation in recent months has left little room for further monetary easing in the ongoing fiscal while the RBI is also eying the Fed’s policy meet in mid-December to see whether the world’s biggest central bank finally raises interest rates for the first time in almost a decade. Traders will continue to eye developments related to the crucial GST bill in the ongoing Winter Session of Parliament. Shares of auto companies will be in focus this week as they begin reporting their November sales numbers from Tuesday. A mostly bearish trend in Asia, and weakness in the CNX Nifty Index futures for November delivery which fell 0.25 per cent or 20 points at 7,945 at 10:44 am Singapore time, signals a gap down opening for the Sensex on Monday. Marking a second straight rally, the 30-share Sensex on Friday advanced 169.57 points or by 0.65 per cent to end at 26,128.2 as optimism over a breakthrough in the GST saga after the Modi government invited the Congress party to discuss a compromise on the landmark fiscal bill that has been stuck in the Upper House of Parliament, where the BJP has very thin numbers, bolstered sentiment.
Asian stocks were trading mostly lower as traders were cautious ahead of key economic events this week including the US jobs data for November which may signal continued strength in the labour market of the world’s biggest economy, bolstering the case for a December rate hike, and the European Central Bank (ECB) policy meet with hopes building up for a stimulus boost. China’s Shanghai Composite extended a drop after posting its steepest loss in three months on Friday when a drop in industrial profits, fears that IPOs will lure away funds from existing shares and concerns over regulatory probes in the country’s top brokerages caused a severe sell-off. Hang Seng was trading with slim gains while Japan’s Nikkei 225 fell as industrial output in October grew less than estimated in October, raising concerns over the world’s third biggest economy, which slipped into recession last quarter. Wall Street closed little changed on Friday as energy shares declined
