Pre Session: Weak global cues signal lower start on D-Street
09/12/2015
The key Indian equity benchmarks are likely to face turbulence and witness a bearish opening for the sixth straight day on Wednesday, tracking a steep sell-off in markets across Asia, as uncertainty loom over the long pending GST bill after opposition uproar over the National Herald case led to a Parliament adjournment for a second day on Tuesday. Further 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 29 points at 7,690 at 10:29 am Singapore time, signal that the Sensex is likely to open lower today.
The domestic bourses ended lower for fifth straight day on Tuesday as a bearish trend across markets in Asia amidst fresh fears over China fuelled by a worsening trade slump, and caution ahead of a likely Fed interest rate hike next week plagued investor sentiment. The 30-share BSE SENSEX closed at 25310.33, down by 219.78 points or by 0.86 per cent, and the NSE Nifty ended 63.7 points lower at 7701.7. Shares of cigarette makers may continue downtrend as the Finance Ministry recommended a 40 per cent goods and services tax (GST) rate on tobacco products. Oil shares may also 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. Among others, 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 continued their southward journey on Wednesday as oil rout took a toll on energy and resource shares, after China trade data signaled a worsening slowdown in Asia’s biggest economy. China’s Shanghai Composite was trading flat while Hang Seng slumped 0.5 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 ended in red on Tuesday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 closed lower in four out of the past five sessions, led by a sell-off in shares of raw material producers and energy companies.
09/12/2015
The key Indian equity benchmarks are likely to face turbulence and witness a bearish opening for the sixth straight day on Wednesday, tracking a steep sell-off in markets across Asia, as uncertainty loom over the long pending GST bill after opposition uproar over the National Herald case led to a Parliament adjournment for a second day on Tuesday. Further 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 29 points at 7,690 at 10:29 am Singapore time, signal that the Sensex is likely to open lower today.
The domestic bourses ended lower for fifth straight day on Tuesday as a bearish trend across markets in Asia amidst fresh fears over China fuelled by a worsening trade slump, and caution ahead of a likely Fed interest rate hike next week plagued investor sentiment. The 30-share BSE SENSEX closed at 25310.33, down by 219.78 points or by 0.86 per cent, and the NSE Nifty ended 63.7 points lower at 7701.7. Shares of cigarette makers may continue downtrend as the Finance Ministry recommended a 40 per cent goods and services tax (GST) rate on tobacco products. Oil shares may also 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. Among others, 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 continued their southward journey on Wednesday as oil rout took a toll on energy and resource shares, after China trade data signaled a worsening slowdown in Asia’s biggest economy. China’s Shanghai Composite was trading flat while Hang Seng slumped 0.5 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 ended in red on Tuesday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 closed lower in four out of the past five sessions, led by a sell-off in shares of raw material producers and energy companies.
