Pre Session- Gap down opening on the cards for Sensex on Asia rout
04/01/2016
The key domestic equity benchmarks are poised to open on a bearish note on Monday tracking a slump in stocks across Asia as Saudi Arabia’s severing of diplomatic ties with Iran curbs risk taking appetite. The CNX Nifty Index futures for January delivery fell 0.62 per cent or 49 points at 7,899 at 10:33 am Singapore time, signaling that the Sensex may open lower today. Traders will be eying the Indian manufacturing and services PMI set for release this week, which may offer fresh cues over the health of Asia’s third biggest economy. Further, global cues, trends of foreign investors, crude oil prices and rupee movement will dictate movement at Dalal Street this week. The focus will slowly start building towards the Budget and the government’s reforms agenda for 2016 with optimism that the GST will get Parliamentary approval in the Budget Session. Auto stocks may be in focus on Monday as the companies report their monthly sales numbers. On Friday, the 30-share Sensex rallied 43.36 points or by 0.17 per cent to end at 26,160.9 in thin trading volume on the first day of the New Year. The Sensex marked a third straight week of advance, rising 1.3 per cent for the week amidst intense short-covering due to the December Futures & Options (F&O) expiry.
Asian markets tumbled as Saudi Arabia severed diplomatic ties with Iran, raising Middle East tensions, signaling a period of further uncertainty over global oil prices, dimming the appeal of risky assets. Saudi Arabia expelled Iran’s diplomats from the country after an attack on its embassy in Tehran to protest the Saudis’ execution of a well-known Shiite cleric, marking the worst crisis in relations between the nations since the late 1980s. China’s Shanghai Composite plunged nearly 4 per cent & Hang Seng lost over 2 per cent after China’s manufacturing contracted at a faster pace in December, raising fears over a hard landing in the world’s second biggest economy. The Caixin China General Manufacturing PMI fell to 48.2 in December from 48.6 in November, with a reading below 50 signaling contraction. Japan’s Nikkei 225 shed over 2.5 per cent as a spike in the yen to a two-month high curbed the lure for exporter stocks. Wall Street was closed on Friday due to the New Year’s holiday.
04/01/2016
The key domestic equity benchmarks are poised to open on a bearish note on Monday tracking a slump in stocks across Asia as Saudi Arabia’s severing of diplomatic ties with Iran curbs risk taking appetite. The CNX Nifty Index futures for January delivery fell 0.62 per cent or 49 points at 7,899 at 10:33 am Singapore time, signaling that the Sensex may open lower today. Traders will be eying the Indian manufacturing and services PMI set for release this week, which may offer fresh cues over the health of Asia’s third biggest economy. Further, global cues, trends of foreign investors, crude oil prices and rupee movement will dictate movement at Dalal Street this week. The focus will slowly start building towards the Budget and the government’s reforms agenda for 2016 with optimism that the GST will get Parliamentary approval in the Budget Session. Auto stocks may be in focus on Monday as the companies report their monthly sales numbers. On Friday, the 30-share Sensex rallied 43.36 points or by 0.17 per cent to end at 26,160.9 in thin trading volume on the first day of the New Year. The Sensex marked a third straight week of advance, rising 1.3 per cent for the week amidst intense short-covering due to the December Futures & Options (F&O) expiry.
Asian markets tumbled as Saudi Arabia severed diplomatic ties with Iran, raising Middle East tensions, signaling a period of further uncertainty over global oil prices, dimming the appeal of risky assets. Saudi Arabia expelled Iran’s diplomats from the country after an attack on its embassy in Tehran to protest the Saudis’ execution of a well-known Shiite cleric, marking the worst crisis in relations between the nations since the late 1980s. China’s Shanghai Composite plunged nearly 4 per cent & Hang Seng lost over 2 per cent after China’s manufacturing contracted at a faster pace in December, raising fears over a hard landing in the world’s second biggest economy. The Caixin China General Manufacturing PMI fell to 48.2 in December from 48.6 in November, with a reading below 50 signaling contraction. Japan’s Nikkei 225 shed over 2.5 per cent as a spike in the yen to a two-month high curbed the lure for exporter stocks. Wall Street was closed on Friday due to the New Year’s holiday.
