Pre Session-Sensex tipped to open lower ahead of Q3 earnings, economic data
12/01/2016
Indian equity benchmarks are poised to witness a gap down opening on Tuesday as traders stick to a cautious tone ahead of the start of the Q3 earnings season and the release of the IIP and retail inflation data which will offer latest cues over the health of Asia’s third biggest economy. Against the backdrop of a mixed trend in markets across Asia coupled with weakness in the CNX Nifty Index futures for January delivery which fell by 0.22 per cent or 17 points at 7,568 at 10:18 am Singapore time, Dalal Street may witness a bearish opening today. Caution may rule the roost at domestic bourses as big names such as TCS and IndusInd Bank unveil their December quarter earnings numbers, but analysts warn that Q3 corporate earnings may have remained under pressure due to soft underlying demand and global headwinds. The country’s biggest IT services exporter TCS may report a 0.8 per cent sequential drop in Q3 net income at Rs 6,005 crore with seasonality and the Chennai floods weighing heavily on the company’s financials. Meanwhile, investors will be eying the December consumer inflation and November IIP numbers set for release in after market hours today. While India’s consumer inflation probably accelerated to 5.6 per cent in December 2015 from 5.41 per cent in November 2015, industrial output growth may have decelerated to 3.1 per cent in November 2015 from October’s five-year high of 9.8 per cent, on an annual basis. On Monday, the 30-share Sensex plunged by 109.29 points or by 0.44 per cent to end at a 19-month low of 24,825.04 as a China rout and weak rupee roiled sentiment.
Asian stocks were trading mixed with China’s Shanghai Composite eking out mild gains while Hang Seng advanced modestly after officials kept the Yuan’s reference rate stable for the third day, tempering some concerns over the world’s second biggest economy. Japan’s Nikkei 225 plunged over 2 per cent, marking a sixth straight day of decline, as markets reopened after a public holiday, as energy stocks plunged amidst an oil slump. Most indices at Wall Street rallied in volatile trade on Monday as gains in consumer and technology stocks overpowered worries over China’s slowdown and a continued commodity rout. Further, strength in China’s currency restored some calm at bourses as concerns eased that the recent devaluation of the Yuan could fuel turmoil in the economies of China’s major trading partners. The Dow Jones Industrial Average advanced 0.32 per cent; the Nasdaq Composite fell 0.12 per cent while S&P 500 rose 0.09 per cent
12/01/2016
Indian equity benchmarks are poised to witness a gap down opening on Tuesday as traders stick to a cautious tone ahead of the start of the Q3 earnings season and the release of the IIP and retail inflation data which will offer latest cues over the health of Asia’s third biggest economy. Against the backdrop of a mixed trend in markets across Asia coupled with weakness in the CNX Nifty Index futures for January delivery which fell by 0.22 per cent or 17 points at 7,568 at 10:18 am Singapore time, Dalal Street may witness a bearish opening today. Caution may rule the roost at domestic bourses as big names such as TCS and IndusInd Bank unveil their December quarter earnings numbers, but analysts warn that Q3 corporate earnings may have remained under pressure due to soft underlying demand and global headwinds. The country’s biggest IT services exporter TCS may report a 0.8 per cent sequential drop in Q3 net income at Rs 6,005 crore with seasonality and the Chennai floods weighing heavily on the company’s financials. Meanwhile, investors will be eying the December consumer inflation and November IIP numbers set for release in after market hours today. While India’s consumer inflation probably accelerated to 5.6 per cent in December 2015 from 5.41 per cent in November 2015, industrial output growth may have decelerated to 3.1 per cent in November 2015 from October’s five-year high of 9.8 per cent, on an annual basis. On Monday, the 30-share Sensex plunged by 109.29 points or by 0.44 per cent to end at a 19-month low of 24,825.04 as a China rout and weak rupee roiled sentiment.
Asian stocks were trading mixed with China’s Shanghai Composite eking out mild gains while Hang Seng advanced modestly after officials kept the Yuan’s reference rate stable for the third day, tempering some concerns over the world’s second biggest economy. Japan’s Nikkei 225 plunged over 2 per cent, marking a sixth straight day of decline, as markets reopened after a public holiday, as energy stocks plunged amidst an oil slump. Most indices at Wall Street rallied in volatile trade on Monday as gains in consumer and technology stocks overpowered worries over China’s slowdown and a continued commodity rout. Further, strength in China’s currency restored some calm at bourses as concerns eased that the recent devaluation of the Yuan could fuel turmoil in the economies of China’s major trading partners. The Dow Jones Industrial Average advanced 0.32 per cent; the Nasdaq Composite fell 0.12 per cent while S&P 500 rose 0.09 per cent
