Pre Session- Sensex set to extend gains on global rally, improving economic outlook
24/12/2015
Indian equity benchmarks are poised to advance for a second day on the trot on Thursday tracking a mostly firm trend across stocks in Asia and a bullish finish at Wall Street overnight as strong US consumer spending data signaled confidence in the health of the world’s biggest economy, bolstering risk taking appetite. A shrinking current account shortfall signaled an improved outlook for Asia’s third biggest economy, and may bolster sentiment at Dalal Street. Current account deficit (CAD) narrowed to USD 8.2 billion or 1.6 per cent of India’ s GDP in the September 2015 quarter from USD 10.9 billion or 2.2 per cent of the country’s GDP in the year ago quarter. A firm global trend coupled with strength in the CNX Nifty Index futures for December delivery which climbed 0.24 per cent or 19 points at 7,885.5 at 10:36 am Singapore time, signals that the Sensex may witness a positive opening today. However, caution ahead of the Christmas trading Holiday on Friday and worries over the progress of key reforms such as the Goods and Services Tax (GST) with the Winter Session of Parliament which was a washout, coming to a close on Wednesday, may curb gains at Dalal Street. On Wednesday, the 30-share Sensex soared by 259.65 points or by 1.01 per cent to end at a three-week high of 25,850.3 as a global rally buoyed sentiment while foreigners boosted purchases. Foreign funds bought Indian stocks worth a net USD 92.6 million on December 22, the fourth straight day of purchases, resulting in a total inflow of USD 2.9 billion in 2015 thus far as a rise in interest rates in the US failed to dim the appeal of Indian equities.
Most Asian stocks advanced on Thursday as a rebound in oil prices lifted energy shares while upbeat US consumer data raised hopes that the country’s economy may withstand the impact of higher interest rates. US consumer spending rose the most in three months, up by 0.3 per cent in November from the previous month. China’s Shanghai Composite fell led by a drop in healthcare and property shares amidst low turnover, Hang Seng advanced and Japan’s Nikkei 225 rose as markets reopened after Wednesday’s holiday. Wall Street surged on Wednesday after US consumer spending rose in November, consumer confidence hit the highest level in five months in December, and sales of new homes rose last month, a sign that the American economy is in strong shape as the US Federal Reserve raises borrowing costs. The Dow Jones Industrial Average climbed 1.06 per cent, the Nasdaq Composite rose 0.90 per cent while S&P 500 advanced 1.24 per cent.
24/12/2015
Indian equity benchmarks are poised to advance for a second day on the trot on Thursday tracking a mostly firm trend across stocks in Asia and a bullish finish at Wall Street overnight as strong US consumer spending data signaled confidence in the health of the world’s biggest economy, bolstering risk taking appetite. A shrinking current account shortfall signaled an improved outlook for Asia’s third biggest economy, and may bolster sentiment at Dalal Street. Current account deficit (CAD) narrowed to USD 8.2 billion or 1.6 per cent of India’ s GDP in the September 2015 quarter from USD 10.9 billion or 2.2 per cent of the country’s GDP in the year ago quarter. A firm global trend coupled with strength in the CNX Nifty Index futures for December delivery which climbed 0.24 per cent or 19 points at 7,885.5 at 10:36 am Singapore time, signals that the Sensex may witness a positive opening today. However, caution ahead of the Christmas trading Holiday on Friday and worries over the progress of key reforms such as the Goods and Services Tax (GST) with the Winter Session of Parliament which was a washout, coming to a close on Wednesday, may curb gains at Dalal Street. On Wednesday, the 30-share Sensex soared by 259.65 points or by 1.01 per cent to end at a three-week high of 25,850.3 as a global rally buoyed sentiment while foreigners boosted purchases. Foreign funds bought Indian stocks worth a net USD 92.6 million on December 22, the fourth straight day of purchases, resulting in a total inflow of USD 2.9 billion in 2015 thus far as a rise in interest rates in the US failed to dim the appeal of Indian equities.
Most Asian stocks advanced on Thursday as a rebound in oil prices lifted energy shares while upbeat US consumer data raised hopes that the country’s economy may withstand the impact of higher interest rates. US consumer spending rose the most in three months, up by 0.3 per cent in November from the previous month. China’s Shanghai Composite fell led by a drop in healthcare and property shares amidst low turnover, Hang Seng advanced and Japan’s Nikkei 225 rose as markets reopened after Wednesday’s holiday. Wall Street surged on Wednesday after US consumer spending rose in November, consumer confidence hit the highest level in five months in December, and sales of new homes rose last month, a sign that the American economy is in strong shape as the US Federal Reserve raises borrowing costs. The Dow Jones Industrial Average climbed 1.06 per cent, the Nasdaq Composite rose 0.90 per cent while S&P 500 advanced 1.24 per cent.
