Pre Session-Dalal Street may snap 3-day losing streak on global rally
07/12/2015 08:44
The key Indian equity benchmarks are poised to bounce back from a three-day losing spree, on Monday as robust global cues bolster investor mood at Dalal Street while the sharp losses in the past few sessions which pushed the Sensex to a two-week low, offers good bargain buying opportunity in stocks, at existing levels. A mostly bullish trend across Asia and a rally at Wall Street on Friday, coupled with strength in the CNX Nifty Index futures for December delivery which advanced 0.47 per cent or 37 points at 7,857 at 10:23 am Singapore time, signal that the Sensex is likely to witness a gap up opening on Monday. Marking a third straight day in the red, the 30-share Sensex, on Friday slipped 248.51 points or by 0.96 per cent to end at 25,638.11 amidst a global sell-off after the European Central Bank’s (ECB) stimulus efforts which included cutting the deposit rate into deep negative territory, and extending its bond buying plan by at least six months, fell short of market expectations. Dalal Street traders this week will eye the release of the October industrial output data in after-market hours on Friday, which may offer fresh cues over the health of Asia’s third biggest economy. In September 2015, industrial output expanded by 3.6 per cent, year on year, compared to a scorching growth of 6.3 per cent in August 2015. Markets may witness some volatility this week as better-than-expected US jobs data pushed the case for a maiden interest rate hike since 2006, next week, weighing on the outlook for emerging markets, which may lose some sheen as higher interest rates in the US risk diverting capital back to the US. The world’s biggest economy added 211,000 jobs in November as the jobless rate stayed at over a seven-year low of 5 per cent. October’s payrolls gain was upwardly revised to 298,000, showing a fast progressing labour market recovery, bolstering the case for monetary tightening. Meanwhile, falling oil prices may boost sentiment, given that India, a net crude importer, benefits from the ongoing oil slump. With the OPEC refusing to curb production to alleviate a supply glut, the price of the benchmark Brent crude could slip well below USD 40 per barrel in the upcoming sessions.
Most Asian stocks rallied after strong US jobs data reinforced optimism over the health of the American economy while ECB President Mario Draghi signaled that the Frankfurt-based central bank will add stimulus as needed. China’s Shanghai Composite was trading tad lower ahead of tomorrow’s trade numbers which may show a continued decline in the country’s exports and imports in November, raising fears over a hard landing in the world’s second biggest economy. Hang Seng rose and Japan’s Nikkei 225 surged 1.5 per cent ahead of the Bank of Japan governor’s speech. Wall Street soared on Friday with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallying over 2 per cent as strong US jobs data raised hopes that the American economy can withstand the effect of monetary tightening.
07/12/2015 08:44
The key Indian equity benchmarks are poised to bounce back from a three-day losing spree, on Monday as robust global cues bolster investor mood at Dalal Street while the sharp losses in the past few sessions which pushed the Sensex to a two-week low, offers good bargain buying opportunity in stocks, at existing levels. A mostly bullish trend across Asia and a rally at Wall Street on Friday, coupled with strength in the CNX Nifty Index futures for December delivery which advanced 0.47 per cent or 37 points at 7,857 at 10:23 am Singapore time, signal that the Sensex is likely to witness a gap up opening on Monday. Marking a third straight day in the red, the 30-share Sensex, on Friday slipped 248.51 points or by 0.96 per cent to end at 25,638.11 amidst a global sell-off after the European Central Bank’s (ECB) stimulus efforts which included cutting the deposit rate into deep negative territory, and extending its bond buying plan by at least six months, fell short of market expectations. Dalal Street traders this week will eye the release of the October industrial output data in after-market hours on Friday, which may offer fresh cues over the health of Asia’s third biggest economy. In September 2015, industrial output expanded by 3.6 per cent, year on year, compared to a scorching growth of 6.3 per cent in August 2015. Markets may witness some volatility this week as better-than-expected US jobs data pushed the case for a maiden interest rate hike since 2006, next week, weighing on the outlook for emerging markets, which may lose some sheen as higher interest rates in the US risk diverting capital back to the US. The world’s biggest economy added 211,000 jobs in November as the jobless rate stayed at over a seven-year low of 5 per cent. October’s payrolls gain was upwardly revised to 298,000, showing a fast progressing labour market recovery, bolstering the case for monetary tightening. Meanwhile, falling oil prices may boost sentiment, given that India, a net crude importer, benefits from the ongoing oil slump. With the OPEC refusing to curb production to alleviate a supply glut, the price of the benchmark Brent crude could slip well below USD 40 per barrel in the upcoming sessions.
Most Asian stocks rallied after strong US jobs data reinforced optimism over the health of the American economy while ECB President Mario Draghi signaled that the Frankfurt-based central bank will add stimulus as needed. China’s Shanghai Composite was trading tad lower ahead of tomorrow’s trade numbers which may show a continued decline in the country’s exports and imports in November, raising fears over a hard landing in the world’s second biggest economy. Hang Seng rose and Japan’s Nikkei 225 surged 1.5 per cent ahead of the Bank of Japan governor’s speech. Wall Street soared on Friday with each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallying over 2 per cent as strong US jobs data raised hopes that the American economy can withstand the effect of monetary tightening.
