Pre Session- Calm may return at Dalal Street after Manic Monday
05/01/2016
The key domestic equity benchmarks are poised to open higher on Tuesday as a sell-off in China’s stocks eased after the country’s officials vowed to act to stem stock volatility and work towards improving market mechanisms, bolstering the lure for risky assets. The CNX Nifty Index futures for January delivery climbed 0.34 per cent or 26.5 points at 7,828.5 at 10:24 am Singapore time, signaling that the Sensex may witness a gap up opening today. On the domestic front, caution ahead of the Services PMI data set for release on Wednesday, and which will offer fresh cues over the health of Asia’s third biggest economy may weigh on Dalal Street, trimming gains at bourses. The gauge measuring India’s services activity fell to 50.1 in November from 53.2 in October, with a reading above 50 signaling expansion. On Monday, data showed that India’s manufacturing activity slipped into contraction for the first time in over two years as the PMI fell to 49.1 in December from 50.3 in November, dimming optimism over the ongoing economic recovery. Volatility in oil prices may also influence sentiment as the Saudi-Iran row with the two countries cutting off diplomatic ties with each other over a prominent Shiite execution by Saudi Arabia, has raised concerns over the oil-rich Middle East region. On Monday, the 30-share Sensex slid by 537.55 points or by 2.05 per cent to end at 25,623.35 as a China market rout rattled stocks across Asia.
Major Asian markets were trading mostly higher as concerns over China eased after the country’s securities market regulator vowed to combat stock market volatility by improving a circuit breaker system that saw stock trading halted amidst Monday’s severe sell-off, bolstering risk taking appetite. Meanwhile, the People’s Bank of China pumped in cash into the banking system via the biggest reverse repurchase agreements since September, supporting the country’s stock market and the world’s second biggest economy. China’s Shanghai Composite logged modest losses, Hang Seng posted slim gains while Japan’s Nikkei 225 advanced. Wall Street plunged on Monday as a rout in China sent global stocks in a tailspin while dismal US factory and construction data signaled a faltering recovery in the world’s biggest economy. Manufacturing activity in the US shrank at the fastest pace in more than six years, with the ISM’s factory gauge falling to 48.2 in December from 48.6 in November, while US construction spending dipped 0.4 per cent in November. The Dow Jones Industrial Average tanked 1.58 per cent; the Nasdaq Composite dropped 2.08 per cent while S&P 500 shed 1.53 per cent
05/01/2016
The key domestic equity benchmarks are poised to open higher on Tuesday as a sell-off in China’s stocks eased after the country’s officials vowed to act to stem stock volatility and work towards improving market mechanisms, bolstering the lure for risky assets. The CNX Nifty Index futures for January delivery climbed 0.34 per cent or 26.5 points at 7,828.5 at 10:24 am Singapore time, signaling that the Sensex may witness a gap up opening today. On the domestic front, caution ahead of the Services PMI data set for release on Wednesday, and which will offer fresh cues over the health of Asia’s third biggest economy may weigh on Dalal Street, trimming gains at bourses. The gauge measuring India’s services activity fell to 50.1 in November from 53.2 in October, with a reading above 50 signaling expansion. On Monday, data showed that India’s manufacturing activity slipped into contraction for the first time in over two years as the PMI fell to 49.1 in December from 50.3 in November, dimming optimism over the ongoing economic recovery. Volatility in oil prices may also influence sentiment as the Saudi-Iran row with the two countries cutting off diplomatic ties with each other over a prominent Shiite execution by Saudi Arabia, has raised concerns over the oil-rich Middle East region. On Monday, the 30-share Sensex slid by 537.55 points or by 2.05 per cent to end at 25,623.35 as a China market rout rattled stocks across Asia.
Major Asian markets were trading mostly higher as concerns over China eased after the country’s securities market regulator vowed to combat stock market volatility by improving a circuit breaker system that saw stock trading halted amidst Monday’s severe sell-off, bolstering risk taking appetite. Meanwhile, the People’s Bank of China pumped in cash into the banking system via the biggest reverse repurchase agreements since September, supporting the country’s stock market and the world’s second biggest economy. China’s Shanghai Composite logged modest losses, Hang Seng posted slim gains while Japan’s Nikkei 225 advanced. Wall Street plunged on Monday as a rout in China sent global stocks in a tailspin while dismal US factory and construction data signaled a faltering recovery in the world’s biggest economy. Manufacturing activity in the US shrank at the fastest pace in more than six years, with the ISM’s factory gauge falling to 48.2 in December from 48.6 in November, while US construction spending dipped 0.4 per cent in November. The Dow Jones Industrial Average tanked 1.58 per cent; the Nasdaq Composite dropped 2.08 per cent while S&P 500 shed 1.53 per cent
