Pre Session-Sensex may open tad higher amid mixed Asia trend
30/12/2015
Indian equity benchmarks are tipped to open with slim gains on Wednesday even amidst a mixed trend across markets in Asia as upbeat US data raised optimism that the world’s biggest economy is in strong shape to withstand the effect of higher interest rates, bolstering the appeal of risky assets. The CNX Nifty Index futures for December delivery climbed 0.07 per cent or 5.5 points at 7,943.5 at 10:29 am Singapore time, signaling that the Sensex may open tad higher today. However, caution ahead of the December futures and options (F&O) contracts expiry tomorrow may weigh on Dalal Street. With the year drawing to a close, trading volumes may remain thin at domestic bourses, as many investors stay on the sidelines. In the absence of any major domestic economic data, F&O expiry, global cues, movement of the rupee against the dollar, and oil prices will continue to dictate market trend. Marking a second straight day of gains, the 30-share Sensex on Tuesday, advanced by 45.35 points or by 0.17 per cent to end at 26,079.48 led by short-covering ahead of the December derivative expiry later this week, and a positive trend across markets in Asia amidst a rebound in commodities & easing worries over China.
Asian stocks were trading mixed today as traders eyed the New Year while an overnight rally at Wall Street lifted financial and technology shares. China’s Shanghai Composite logged slim losses after an impressive rally on Tuesday when China’s central bank vowed to maintain reasonable credit growth and keep the yuan stable, easing concerns over the outlook for the world’s second biggest economy. Hang Seng fell while Japan’s Nikkei 225 advanced as a weaker yen bolstered the lure for exporter stocks. On Tuesday, US stocks advanced after consumer confidence rose in December and home price gains accelerated in October, signaling a strengthening US economic recovery. Home prices in 20 US cities climbed 5.5 per cent in October 2015 from the same month a year ago, after an annual 5.4 per cent advance in September 2015. The gauge measuring US consumer confidence climbed to 96.5 in December from 92.6 in November. The Dow Jones Industrial Average surged 1.1 per cent, the Nasdaq Composite climbed 1.33 per cent while S&P 500 advanced 1.06 per cent.
