Pre Session- Renewed global rout may take toll on Dalal Street
14/01/2016
Indian equity benchmarks may succumb to fresh global jitters and witness a gap down opening on Thursday as lingering fears over China sour risk taking appetite. Against the backdrop of a gloom in fellow Asian peers and an overnight plunge at Wall Street, coupled with sharp weakness in the CNX Nifty Index futures for January delivery which nosedived by 1.46 per cent or 109 points at 7,465 at 10:11 am Singapore time, Dalal Street may open on a bearish note on Thursday. The focus will be on the Q3 earnings numbers from IT bellwether Infosys due today. Infosys, the country’s second biggest software exporter may report a sequential drop in net income of 3 per cent to Rs 3,300 crore in the October- December 2015 quarter as Chennai floods and currency headwinds weigh, analysts’ estimated. Traders will also be eying the December WPI data set for release today, and which may show that wholesale prices fell by 1.15 per cent in December 2015 from the same month a year ago, compared to an annual drop of 1.99 per cent in November 2015. Foreign investors have remained net sellers in Indian equities in January, pulling out USD 557 million as anxiety over China forced a flight from risky assets. Snapping a two-day losing streak, the 30-share Sensex on Wednesday rallied 172.08 points or by 0.7 per cent in volatile trade to end at 24,854.11 led by buying in Infosys and RIL ahead of their December quarter earnings numbers, overshadowing weak IIP data.
Asian stocks sank as investors fret over China while a plunge in oil prices to a fresh 12-year low also hit investor sentiment, fueling demand for safe haven assets. China’s Shanghai Composite fell below the level reached during last August’s turmoil, heading for a bear market amidst worries that growth in the world’s second biggest economy may falter further while a weakening local currency may exacerbate record capital outflows. Hang Seng tanked over 1.6 per cent while Japan’s Nikkei 225 plunged over 3.6 per cent, sinking the most since September as a gauge of capital spending tumbled 14.4 per cent in November from October while a rally in the yen curbed the appeal of exporter stocks. Panic struck Wall Street on Wednesday as investors shunned equities with sentiment turning increasingly bearish amidst a deteriorating global growth outlook on China jitters and a worsening commodity slump. The Dow Jones Industrial Average fell 2.21 per cent; the Nasdaq Composite tumbled 3.41 per cent while S&P 500 tanked 2.5 per cent.
14/01/2016
Indian equity benchmarks may succumb to fresh global jitters and witness a gap down opening on Thursday as lingering fears over China sour risk taking appetite. Against the backdrop of a gloom in fellow Asian peers and an overnight plunge at Wall Street, coupled with sharp weakness in the CNX Nifty Index futures for January delivery which nosedived by 1.46 per cent or 109 points at 7,465 at 10:11 am Singapore time, Dalal Street may open on a bearish note on Thursday. The focus will be on the Q3 earnings numbers from IT bellwether Infosys due today. Infosys, the country’s second biggest software exporter may report a sequential drop in net income of 3 per cent to Rs 3,300 crore in the October- December 2015 quarter as Chennai floods and currency headwinds weigh, analysts’ estimated. Traders will also be eying the December WPI data set for release today, and which may show that wholesale prices fell by 1.15 per cent in December 2015 from the same month a year ago, compared to an annual drop of 1.99 per cent in November 2015. Foreign investors have remained net sellers in Indian equities in January, pulling out USD 557 million as anxiety over China forced a flight from risky assets. Snapping a two-day losing streak, the 30-share Sensex on Wednesday rallied 172.08 points or by 0.7 per cent in volatile trade to end at 24,854.11 led by buying in Infosys and RIL ahead of their December quarter earnings numbers, overshadowing weak IIP data.
Asian stocks sank as investors fret over China while a plunge in oil prices to a fresh 12-year low also hit investor sentiment, fueling demand for safe haven assets. China’s Shanghai Composite fell below the level reached during last August’s turmoil, heading for a bear market amidst worries that growth in the world’s second biggest economy may falter further while a weakening local currency may exacerbate record capital outflows. Hang Seng tanked over 1.6 per cent while Japan’s Nikkei 225 plunged over 3.6 per cent, sinking the most since September as a gauge of capital spending tumbled 14.4 per cent in November from October while a rally in the yen curbed the appeal of exporter stocks. Panic struck Wall Street on Wednesday as investors shunned equities with sentiment turning increasingly bearish amidst a deteriorating global growth outlook on China jitters and a worsening commodity slump. The Dow Jones Industrial Average fell 2.21 per cent; the Nasdaq Composite tumbled 3.41 per cent while S&P 500 tanked 2.5 per cent.
