REGISTER FOR LIVE TRIAL TIPS CURRENCY / COMMODITY / COMMODITY MINI / EQUITY / OPTION / FOREX -Click Here:
Pre Session- Flat opening on the cards for Dalal Street amid mixed Asian cues
10/12/2015
The domestic equity benchmarks may open on a flat note, with a positive bias on Thursday as traders stay on the sidelines amidst rising concerns surrounding the GST bill which could face a delay in implementation, dimming the outlook for Asia’s third biggest economy, curbing risk taking appetite. Continued disruption of the ongoing Winter Session of Parliament amidst opposition uproar threatens to derail the Modi reform express, making foreign investors jittery. There are fears that GST, seen as a breakthrough fiscal reform that could boost the country’s annual GDP by as much as 2 per cent, may fail to get the green light during the current Parliament session, putting its implementation from the set date of April 1, 2016, in limbo. Uncertainty on the global front amidst an ongoing commodity rout, signs of a worsening slowdown in China, coupled with caution ahead of the US Federal Reserve’s policy meet next week in which an interest rate hike is widely expected, may also weigh on Dalal Street. Traders may also resort to caution ahead of the October industrial output data set for release after-market-hours tomorrow. Analysts expect industrial output to have climbed by a robust 5.8 per cent in October 2015, year on year. 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. The CNX Nifty Index futures for December delivery climbed 0.05 per cent or 3.5 points at 7,650 at 10:29 am Singapore time, a sign that the Sensex may open little changed on Thursday. Marking a sixth straight day in the red, the 30-share Sensex, on Wednesday slid by 274.28 points or by 1.08 per cent to end at 25,036.05 as the GST logjam pushed traders towards panic selling as progress over key economic reforms looked set to stall.
Asian stocks were trading mixed as tumbling oil prices continued to unsettle investor sentiment. China’s Shanghai Composite rallied as brokerages advanced, while Hang Seng was trading tad higher. Japan’s Nikkei 225 plunged by over 1 per cent as a stronger yen curbed the lure for exporter stocks. Wall Street slipped to the lowest level in almost four weeks on Wednesday as a rout in oil prices raised fears that weakening global growth may expand supply gluts of commodities. A sharp sell-off in technology shares also hit US stocks, with the tech-heavy Nasdaq Composite sinking nearly 1.5 per cent.
