Pre Session- Gap up opening seen for Sensex on mostly positive Asia trend
15/02/2016
Indian equity benchmarks are likely to open higher on Monday tracking a mostly bullish trend across markets in Asia as traders bet that the recent bout of losses that had pushed global stocks into a bear market were excessive even as concerns over global growth persisted. Gains in the CNX Nifty Index futures for February delivery which climbed 1.34 per cent or by 95 points at 7,069 at 10:34 am Singapore time, signal that Dalal Street may open higher today. The carnage of last week which saw the Sensex plunging 1,631 points, or 6.6 per cent, the most in almost seven years, may pave the way for a good bargain buying opportunity in beaten down stocks, supporting local bourses. The 30-share benchmark snapped a four-day losing streak to end up 34.29 points or by 0.15 per cent at 22,986.12 on Friday. Traders may react to IIP and inflation data released after market hours on Friday, while eying the January wholesale data to be released today. Marking a second straight month of contraction, India’s industrial production contracted 1.3 per cent in December 2015 from the same month a year ago, after shrinking a revised 3.4 per cent in November 2015. Marking a fifth straight month of acceleration, consumer inflation in Asia’s third biggest economy stood at 5.69 per cent in January 2016, the highest level since August 2014, up from 5.61 per cent in December 2015. Volatility may remain high in domestic stocks this week as the focus shifts to the Union Budget with weakness in manufacturing raising calls for strong policy measures to buoy business sentiment and drive investments. Global stock market trend, FII investments, crude oil prices and movement of the rupee against the dollar will also dictate sentiment at Dalal Street this week. Foreign investors pulled out more than USD 400 million last week, taking the total outflow this year to over USD 2 billion.
Most Asian markets rallied from the lowest level in three years tracking a rebound at Wall Street on Friday driven by value buying as shares became oversold after last week’s bloodbath amidst concerns over a faltering global economic recovery. However, China’s Shanghai Composite tanked over 2 per cent as markets reopened after a week-long holiday and as exports tumbled 6.6 per cent in January 2016, year on year, in yuan terms, exacerbating fears over a slowdown in the world’s second biggest economy. Hang Seng soared over 2 per cent and Japan’s Nikkei jumped more than 5 per cent as weakness in the yen boosted exporter stocks, while traders shrugged off data showing a 1.4 per cent annualized contraction in the Japanese economy in Q4. US stocks advanced on Friday, helping S&P 500 snap its longest losing streak since September, as oil prices rebounded smartly and financial shares rose, while investors cheered upbeat retail sales data which showed a third straight month of gains. US retail sales rose by 0.2 per cent in January 2016 from the previous month, when they also climbed at the same pace after an upward revision, easing fears over a slowdown in the world’s biggest economy. The Dow Jones Industrial Average advanced 2 per cent; the Nasdaq Composite rallied 1.66 per cent while S&P 500 jumped 1.95 per cent. Top traded Volumes on NSE Nifty – State Bank of India 41187889.00, ICICI Bank Ltd. 37977751.00, Vedanta Ltd. 28898103.00, Axis Bank Ltd. 28434501.00 and Tata Motors Ltd. 21542152.00.
15/02/2016
Indian equity benchmarks are likely to open higher on Monday tracking a mostly bullish trend across markets in Asia as traders bet that the recent bout of losses that had pushed global stocks into a bear market were excessive even as concerns over global growth persisted. Gains in the CNX Nifty Index futures for February delivery which climbed 1.34 per cent or by 95 points at 7,069 at 10:34 am Singapore time, signal that Dalal Street may open higher today. The carnage of last week which saw the Sensex plunging 1,631 points, or 6.6 per cent, the most in almost seven years, may pave the way for a good bargain buying opportunity in beaten down stocks, supporting local bourses. The 30-share benchmark snapped a four-day losing streak to end up 34.29 points or by 0.15 per cent at 22,986.12 on Friday. Traders may react to IIP and inflation data released after market hours on Friday, while eying the January wholesale data to be released today. Marking a second straight month of contraction, India’s industrial production contracted 1.3 per cent in December 2015 from the same month a year ago, after shrinking a revised 3.4 per cent in November 2015. Marking a fifth straight month of acceleration, consumer inflation in Asia’s third biggest economy stood at 5.69 per cent in January 2016, the highest level since August 2014, up from 5.61 per cent in December 2015. Volatility may remain high in domestic stocks this week as the focus shifts to the Union Budget with weakness in manufacturing raising calls for strong policy measures to buoy business sentiment and drive investments. Global stock market trend, FII investments, crude oil prices and movement of the rupee against the dollar will also dictate sentiment at Dalal Street this week. Foreign investors pulled out more than USD 400 million last week, taking the total outflow this year to over USD 2 billion.
Most Asian markets rallied from the lowest level in three years tracking a rebound at Wall Street on Friday driven by value buying as shares became oversold after last week’s bloodbath amidst concerns over a faltering global economic recovery. However, China’s Shanghai Composite tanked over 2 per cent as markets reopened after a week-long holiday and as exports tumbled 6.6 per cent in January 2016, year on year, in yuan terms, exacerbating fears over a slowdown in the world’s second biggest economy. Hang Seng soared over 2 per cent and Japan’s Nikkei jumped more than 5 per cent as weakness in the yen boosted exporter stocks, while traders shrugged off data showing a 1.4 per cent annualized contraction in the Japanese economy in Q4. US stocks advanced on Friday, helping S&P 500 snap its longest losing streak since September, as oil prices rebounded smartly and financial shares rose, while investors cheered upbeat retail sales data which showed a third straight month of gains. US retail sales rose by 0.2 per cent in January 2016 from the previous month, when they also climbed at the same pace after an upward revision, easing fears over a slowdown in the world’s biggest economy. The Dow Jones Industrial Average advanced 2 per cent; the Nasdaq Composite rallied 1.66 per cent while S&P 500 jumped 1.95 per cent. Top traded Volumes on NSE Nifty – State Bank of India 41187889.00, ICICI Bank Ltd. 37977751.00, Vedanta Ltd. 28898103.00, Axis Bank Ltd. 28434501.00 and Tata Motors Ltd. 21542152.00.
