Pre Session- Tepid opening on the cards for Sensex; volatility to rule D-Street this week
28/12/2015
The key domestic equity benchmarks are likely to witness a soft opening on Monday tracking a mixed trend across markets in Asia as a worsening China factory slump signaled a growing gloom surrounding the world’s second biggest economy, souring the appetite for risky assets. Slight weakness in the CNX Nifty Index futures for December delivery, which fell 0.04 per cent or 3 points at 7,887.5 at 10:18 am Singapore time, signals that the Sensex may open tad lower today. The domestic bourses are set to witness a volatility-ridden week as traders roll over their positions ahead of the expiry of the December futures and options (F&O) contracts on Thursday. Further, foreign portfolio investors may stay on the sidelines amidst the end of the year, weighing on volumes at Dalal Street. Global cues, the movement of the rupee against the US dollar, and international crude oil prices will also dictate trading sentiment at Dalal Street this week. With the conclusion of the Winter Session of Parliament last week, key reforms such as the GST have been pushed on the backburner, with traders now pinning their hopes on February’s union budget session for crucial bills to get passed. On Thursday, the 30-share Sensex succumbed to slight losses, shedding 11.59 points or by 0.04 per cent to end at 25,838.71 led by weakness in banking stocks after an RBI report raised concerns over deteriorating asset quality and slowing loan growth at Indian lenders. Markets were closed on Friday due to the Christmas holiday. On the Asian front, stocks were trading mixed in the last trading week of 2015 amidst heightened fears over the economic outlook in China. China’s Shanghai Composite and Hang Seng fell prey to losses after industrial companies’ profits in China declined for a sixth month on the trot in November 2015, down 1.4 per cent, year on year, raising fears of a hard landing in Asia’s biggest economy. Japan’s Nikkei 225 rose even as data showed a drop in retail sales and industrial production in November. Wall Street ended on a mixed note on Thursday as traders stayed on the sidelines ahead of the Christmas holiday. The Dow Jones Industrial Average fell 0.29 per cent, the Nasdaq Composite rose 0.05 per cent while S&P 500 declined 0.16 per cent on Thursday.
28/12/2015
The key domestic equity benchmarks are likely to witness a soft opening on Monday tracking a mixed trend across markets in Asia as a worsening China factory slump signaled a growing gloom surrounding the world’s second biggest economy, souring the appetite for risky assets. Slight weakness in the CNX Nifty Index futures for December delivery, which fell 0.04 per cent or 3 points at 7,887.5 at 10:18 am Singapore time, signals that the Sensex may open tad lower today. The domestic bourses are set to witness a volatility-ridden week as traders roll over their positions ahead of the expiry of the December futures and options (F&O) contracts on Thursday. Further, foreign portfolio investors may stay on the sidelines amidst the end of the year, weighing on volumes at Dalal Street. Global cues, the movement of the rupee against the US dollar, and international crude oil prices will also dictate trading sentiment at Dalal Street this week. With the conclusion of the Winter Session of Parliament last week, key reforms such as the GST have been pushed on the backburner, with traders now pinning their hopes on February’s union budget session for crucial bills to get passed. On Thursday, the 30-share Sensex succumbed to slight losses, shedding 11.59 points or by 0.04 per cent to end at 25,838.71 led by weakness in banking stocks after an RBI report raised concerns over deteriorating asset quality and slowing loan growth at Indian lenders. Markets were closed on Friday due to the Christmas holiday. On the Asian front, stocks were trading mixed in the last trading week of 2015 amidst heightened fears over the economic outlook in China. China’s Shanghai Composite and Hang Seng fell prey to losses after industrial companies’ profits in China declined for a sixth month on the trot in November 2015, down 1.4 per cent, year on year, raising fears of a hard landing in Asia’s biggest economy. Japan’s Nikkei 225 rose even as data showed a drop in retail sales and industrial production in November. Wall Street ended on a mixed note on Thursday as traders stayed on the sidelines ahead of the Christmas holiday. The Dow Jones Industrial Average fell 0.29 per cent, the Nasdaq Composite rose 0.05 per cent while S&P 500 declined 0.16 per cent on Thursday.
