Pre Session- Sensex tipped to extend rally on global rebound
16/02/2016
Indian equity benchmarks are poised to witness a gap up opening on Tuesday tracking a bullish trend across stock markets in Asia as global risk taking appetite returns amidst easing concerns over China and a rebound in oil prices. Strength in the CNX Nifty Index futures for February delivery which climbed 0.40 per cent or by 29 points at 7,203 at 10:15 am Singapore time, signals that Dalal Street may open higher today. The focus of traders has now shifted to the Union Budget on February 29 with businesses pinning their hopes on strong policy measures to buoy investment and exports to counter a global slowdown while clarity on the timely implementation of the crucial GST reform is being sought. The Budget will also signal the government’s progress on its fiscal consolidation efforts, and good news on that front could help it win more interest rate cuts from the RBI to bolster growth in Asia’s third biggest economy. Marking a second straight rally, the 30-share Sensex, on Monday advanced by 568 points or by 2.47 per cent to end at 23,554.12 as last week’s carnage paved way for value buying in beaten down blue chips while strong global cues also bolstered sentiment as China’s central bank dismissed fears over a depreciating yuan by setting the Yuan’s fixing at a one-month high.
Asian shares rallied as an upbeat prognosis on the Chinese economy by the country’s central bank chief over the weekend increased the lure for risky assets. Allaying worries over China’s economy, the People’s Bank of China governor Zhou Xiaochuan said that the country’s balance of payments is good and capital outflows are normal, with the exchange rate basically stable against a basket of other currencies. China’s Shanghai Composite surged by more than 1.5 per cent and Hang Seng jumped over 1.2 per cent as China’s January new loans rose to 2.51 trillion Yuan, comfortably topping estimates, signaling a pickup in the world’s second biggest economy. Japan’s Nikkei 225 extended the biggest rally in seven years as a renewed contraction in the world’s third biggest economy bolstered hopes of a stimulus boost from the Bank of Japan, in the near-term. Wall Street was closed on Monday due to the Presidents Day holiday.
16/02/2016
Indian equity benchmarks are poised to witness a gap up opening on Tuesday tracking a bullish trend across stock markets in Asia as global risk taking appetite returns amidst easing concerns over China and a rebound in oil prices. Strength in the CNX Nifty Index futures for February delivery which climbed 0.40 per cent or by 29 points at 7,203 at 10:15 am Singapore time, signals that Dalal Street may open higher today. The focus of traders has now shifted to the Union Budget on February 29 with businesses pinning their hopes on strong policy measures to buoy investment and exports to counter a global slowdown while clarity on the timely implementation of the crucial GST reform is being sought. The Budget will also signal the government’s progress on its fiscal consolidation efforts, and good news on that front could help it win more interest rate cuts from the RBI to bolster growth in Asia’s third biggest economy. Marking a second straight rally, the 30-share Sensex, on Monday advanced by 568 points or by 2.47 per cent to end at 23,554.12 as last week’s carnage paved way for value buying in beaten down blue chips while strong global cues also bolstered sentiment as China’s central bank dismissed fears over a depreciating yuan by setting the Yuan’s fixing at a one-month high.
Asian shares rallied as an upbeat prognosis on the Chinese economy by the country’s central bank chief over the weekend increased the lure for risky assets. Allaying worries over China’s economy, the People’s Bank of China governor Zhou Xiaochuan said that the country’s balance of payments is good and capital outflows are normal, with the exchange rate basically stable against a basket of other currencies. China’s Shanghai Composite surged by more than 1.5 per cent and Hang Seng jumped over 1.2 per cent as China’s January new loans rose to 2.51 trillion Yuan, comfortably topping estimates, signaling a pickup in the world’s second biggest economy. Japan’s Nikkei 225 extended the biggest rally in seven years as a renewed contraction in the world’s third biggest economy bolstered hopes of a stimulus boost from the Bank of Japan, in the near-term. Wall Street was closed on Monday due to the Presidents Day holiday.
