Pre Session- Gloom and Doom may continue at Dalal Street on global sell-off
08/12/2015
The key Indian equity benchmarks are poised to extend a four-day bearish ride and witness a gap down opening on Tuesday tracking a steep sell-off in markets across Asia as a China trade slump exacerbated fears over the health of the world’s second biggest economy, while a commodity rout worsened, curbing risk taking appetite. A bearish trend across Asia and a sell-off at Wall Street overnight, coupled with weakness in the CNX Nifty Index futures for December delivery which fell 0.68 per cent or 53 points at 7,756.5 at 10:29 am Singapore time, signal that the Sensex is likely to open lower today. Marking a four-day run of losses, the 30-share Sensex, on Monday shed 108 points or 0.42 per cent to end at a three-week low of 25,530.11 led by a drop in cigarette makers such as ITC which slid over 6 per cent as the Finance Ministry recommended a 40 per cent goods and services tax (GST) rate on tobacco products. Oil shares may continue their downward journey amidst a worsening rout in crude oil prices as the OPEC effectively ditched its strategy of curbing production to control prices which have now hit the lowest level in more than six and a half years as a supply glut expands. Shares of metal companies may also witness intense selling pressure as China’s exports and imports declined in November, raising fears of a hard landing in the world’s biggest metals consuming nation, eroding prospects of metal makers. Caution ahead of the US Federal Reserve’s two-day policy meet next week in which the world’s top central bank is set to lift interest rates for the first time in almost a decade, may also weigh on Dalal Street.
Asian stocks sank as tepid China trade data signaled a worsening slowdown in Asia’s biggest economy while tumbling oil prices hit shares of energy producers. China’s Shanghai Composite slid over 1.3 per cent while Hang Seng slumped over 1.7 per cent as China’s exports slipped for a fifth month on the trot, declining 3.7 per cent, year on year, in yuan terms, in November 2015. Japan’s Nikkei 225 fell over 1 per cent as a sell-off in energy producers overshadowed upbeat GDP data which showed that the world’s third biggest economy grew by an annualized 1 per cent in the September quarter, hence averting a recession. Wall Street treaded water on Monday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 retreating led by a sell-off in shares of raw material producers and energy companies
08/12/2015
The key Indian equity benchmarks are poised to extend a four-day bearish ride and witness a gap down opening on Tuesday tracking a steep sell-off in markets across Asia as a China trade slump exacerbated fears over the health of the world’s second biggest economy, while a commodity rout worsened, curbing risk taking appetite. A bearish trend across Asia and a sell-off at Wall Street overnight, coupled with weakness in the CNX Nifty Index futures for December delivery which fell 0.68 per cent or 53 points at 7,756.5 at 10:29 am Singapore time, signal that the Sensex is likely to open lower today. Marking a four-day run of losses, the 30-share Sensex, on Monday shed 108 points or 0.42 per cent to end at a three-week low of 25,530.11 led by a drop in cigarette makers such as ITC which slid over 6 per cent as the Finance Ministry recommended a 40 per cent goods and services tax (GST) rate on tobacco products. Oil shares may continue their downward journey amidst a worsening rout in crude oil prices as the OPEC effectively ditched its strategy of curbing production to control prices which have now hit the lowest level in more than six and a half years as a supply glut expands. Shares of metal companies may also witness intense selling pressure as China’s exports and imports declined in November, raising fears of a hard landing in the world’s biggest metals consuming nation, eroding prospects of metal makers. Caution ahead of the US Federal Reserve’s two-day policy meet next week in which the world’s top central bank is set to lift interest rates for the first time in almost a decade, may also weigh on Dalal Street.
Asian stocks sank as tepid China trade data signaled a worsening slowdown in Asia’s biggest economy while tumbling oil prices hit shares of energy producers. China’s Shanghai Composite slid over 1.3 per cent while Hang Seng slumped over 1.7 per cent as China’s exports slipped for a fifth month on the trot, declining 3.7 per cent, year on year, in yuan terms, in November 2015. Japan’s Nikkei 225 fell over 1 per cent as a sell-off in energy producers overshadowed upbeat GDP data which showed that the world’s third biggest economy grew by an annualized 1 per cent in the September quarter, hence averting a recession. Wall Street treaded water on Monday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 retreating led by a sell-off in shares of raw material producers and energy companies
