Pre Session- Worsening global rout may keep Sensex under pressure
10/02/2016
Indian equity benchmarks are poised to extend a slide on Wednesday tracking a deepening sell-off across the globe as investors continue to grow more and more pessimistic over the prospects of the world economy amidst an ongoing slump in crude oil prices and worries over China. A plunge in the CNX Nifty Index futures for February delivery which fell 0.94 per cent or by 68 points at 7,260 at 10:29 am Singapore time, signals a gap down opening for Dalal Street today. A better than expected growth projection of 7.6 per cent made by the government for the Indian economy in FY 2015-16 hasn’t been enough to cheer domestic traders as global jitters bite. The focus today will be on the October-December 2015 quarter earnings of Cipla, IOB, Tata Chemicals and UCO Bank. Marking a second straight day in the red, the 30-share Sensex on Tuesday slipped by 266.44 points or by 1.1 per cent to end at 24,020.98 as traders resorted to heightened risk aversion amidst global equity weakness.
While many Asian markets including those in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 extended a slide, tumbling over 2 per cent as persistent fears over market volatility pushed up the yen, making exporter stocks less attractive, raising concerns over Japan’s economic recovery. Traders also seemed cautious ahead of Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next following a maiden lift-off in borrowing costs in almost a decade in December. With the Bank of Japan resorting to negative interest rates, a move which hasn’t stemmed market fears, Yellen may need to adopt a careful calibration of her commentary on monetary policy to avoid fueling further market volatility. Wall Street ended lower on Tuesday with benchmark S&P 500 languishing near the lowest level since April 2014 with the Nasdaq Composite on the cusp of a bear market led by declines in energy and technology shares. Traders cast aside data which showed that US job openings rose to the second highest level on record, up by 261,000 to 5.61 million in December, signaling a resilient labour market in the world’s biggest economy. The Dow Jones Industrial Average fell 0.08 per cent; the Nasdaq Composite declined 0.35 per cent while S&P 500 dipped 0.07 per cent.
10/02/2016
Indian equity benchmarks are poised to extend a slide on Wednesday tracking a deepening sell-off across the globe as investors continue to grow more and more pessimistic over the prospects of the world economy amidst an ongoing slump in crude oil prices and worries over China. A plunge in the CNX Nifty Index futures for February delivery which fell 0.94 per cent or by 68 points at 7,260 at 10:29 am Singapore time, signals a gap down opening for Dalal Street today. A better than expected growth projection of 7.6 per cent made by the government for the Indian economy in FY 2015-16 hasn’t been enough to cheer domestic traders as global jitters bite. The focus today will be on the October-December 2015 quarter earnings of Cipla, IOB, Tata Chemicals and UCO Bank. Marking a second straight day in the red, the 30-share Sensex on Tuesday slipped by 266.44 points or by 1.1 per cent to end at 24,020.98 as traders resorted to heightened risk aversion amidst global equity weakness.
While many Asian markets including those in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 extended a slide, tumbling over 2 per cent as persistent fears over market volatility pushed up the yen, making exporter stocks less attractive, raising concerns over Japan’s economic recovery. Traders also seemed cautious ahead of Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next following a maiden lift-off in borrowing costs in almost a decade in December. With the Bank of Japan resorting to negative interest rates, a move which hasn’t stemmed market fears, Yellen may need to adopt a careful calibration of her commentary on monetary policy to avoid fueling further market volatility. Wall Street ended lower on Tuesday with benchmark S&P 500 languishing near the lowest level since April 2014 with the Nasdaq Composite on the cusp of a bear market led by declines in energy and technology shares. Traders cast aside data which showed that US job openings rose to the second highest level on record, up by 261,000 to 5.61 million in December, signaling a resilient labour market in the world’s biggest economy. The Dow Jones Industrial Average fell 0.08 per cent; the Nasdaq Composite declined 0.35 per cent while S&P 500 dipped 0.07 per cent.
