Pre Session- Sensex tipped to rebound from Bloodbath on bargain buying
12/02/2016
Indian equity benchmarks are poised to bounce back from Thursday’s carnage and open higher on the last day of the trading week as a four-day plunge paves the way for value buying, by investors and speculators, in the local bourses , at existing levels. Gains in the CNX Nifty Index futures for February delivery which climbed 1.3 per cent or by 91 points at 7,009 at 10:36 am Singapore time, signal that Dalal Street is set to witness a gap up opening on Friday. Marking the biggest drop in six months, yesterday, the 30-share Sensex had tumbled by 807.07 points or by 3.4 per cent to its lowest level in 21 months at 22,951.83 as mounting bad loans on the balance sheets of state-run lenders, disappointing Q3 earnings and rising fears over a fast faltering global economic recovery shook investor sentiment. Fed Chair Janet Yellen’s comments wherein she highlighted concerns over the health of the US economy amidst a global turmoil even as she signaled delayed rate hikes, weighed heavily. A continued commodity rout and concerns over China slowdown coupled with uncertainty over US interest outlook has pushed the Sensex to pre-Modi levels with the 30-share benchmark sinking over 1,600 points or 6.5 per cent in the past four sessions, taking the total outflow from overseas investors this year to USD 1.9 billion. On the earnings front, Adani Ports, Adani Power, M&M, Andhra Bank, BPCL, Canara Bank, IOC, Nestle India, OIL and Sun TV will declare their December quarter financial numbers today.
