Pre Session- Sensex tipped to extend rally on strong global trend
18/02/2016
The key domestic equity benchmarks are set to witness a gap up opening on Thursday tracking a bullish trend in markets across Asia and a strong finish at Wall Street overnight as a rebound in oil prices and hopes that the US Federal Reserve may push back the timetable for further monetary tightening in the world’s biggest economy bolstered risk taking appetite. Strength in the CNX Nifty Index futures for February delivery which climbed 0.69 per cent or by 49.5 points at 7,185.5 at 10:36 am Singapore time, signals that the Sensex may witness a positive opening today. Dalal Street traders are eagerly awaiting the start of the Budget Session of the Parliament on February 23, 2016 in which the Modi government is hopeful of getting the approval for key structural reform bills such as GST that remains stuck in the Upper House due to political headwinds. Traders will eye the movement of the rupee, which on Wednesday tumbled to 68.67 per US dollar, near a record low of 68.85 hit in August 2013 as investors shunned Asian currencies. The 30-share Sensex on Wednesday advanced by 189.9 points or by 0.82 per cent to end at 23,381.87 as investors snapped up beaten down stocks, and strong cues from European markets supported sentiment.
Asian stocks rose on Thursday as a rebound in oil prices to levels seen at the start of February bolstered sentiment. China’s Shanghai Composite advanced amid accelerated efforts by policymakers to boost growth in the world’s second biggest economy. Hang Seng soared over 2 per cent as China’s consumer inflation accelerated to 1.8 per cent in January 2016 from 1.6 per cent in December 2015, easing fears over an economic slowdown. Japan’s Nikkei 225 rallied over 2 per cent amidst an energy rebound and on speculation of further central bank stimulus as exports plunged 12.9 per cent, year on year in January 2016. Minutes from the Fed’s January meet signaled that the FOMC may delay further interest rate tightening as they underlined risks to the US economy stemming from falling commodity prices and a financial market rout. Wall Street rallied on Wednesday driven by a jump in energy shares while traders weighed mixed US economic data. While US factory output surged the most since July in January 2016, up by 0.5 per cent, wholesale prices unexpectedly rose 0.1 per cent in January, but housing starts fell 3.8 per cent to a 1.1 million annualized rate last month. The Dow Jones Industrial Average advanced 1.59 per cent; the Nasdaq Composite rallied 2.21 per cent while S&P 500 jumped 1.65 per cent.
18/02/2016
The key domestic equity benchmarks are set to witness a gap up opening on Thursday tracking a bullish trend in markets across Asia and a strong finish at Wall Street overnight as a rebound in oil prices and hopes that the US Federal Reserve may push back the timetable for further monetary tightening in the world’s biggest economy bolstered risk taking appetite. Strength in the CNX Nifty Index futures for February delivery which climbed 0.69 per cent or by 49.5 points at 7,185.5 at 10:36 am Singapore time, signals that the Sensex may witness a positive opening today. Dalal Street traders are eagerly awaiting the start of the Budget Session of the Parliament on February 23, 2016 in which the Modi government is hopeful of getting the approval for key structural reform bills such as GST that remains stuck in the Upper House due to political headwinds. Traders will eye the movement of the rupee, which on Wednesday tumbled to 68.67 per US dollar, near a record low of 68.85 hit in August 2013 as investors shunned Asian currencies. The 30-share Sensex on Wednesday advanced by 189.9 points or by 0.82 per cent to end at 23,381.87 as investors snapped up beaten down stocks, and strong cues from European markets supported sentiment.
Asian stocks rose on Thursday as a rebound in oil prices to levels seen at the start of February bolstered sentiment. China’s Shanghai Composite advanced amid accelerated efforts by policymakers to boost growth in the world’s second biggest economy. Hang Seng soared over 2 per cent as China’s consumer inflation accelerated to 1.8 per cent in January 2016 from 1.6 per cent in December 2015, easing fears over an economic slowdown. Japan’s Nikkei 225 rallied over 2 per cent amidst an energy rebound and on speculation of further central bank stimulus as exports plunged 12.9 per cent, year on year in January 2016. Minutes from the Fed’s January meet signaled that the FOMC may delay further interest rate tightening as they underlined risks to the US economy stemming from falling commodity prices and a financial market rout. Wall Street rallied on Wednesday driven by a jump in energy shares while traders weighed mixed US economic data. While US factory output surged the most since July in January 2016, up by 0.5 per cent, wholesale prices unexpectedly rose 0.1 per cent in January, but housing starts fell 3.8 per cent to a 1.1 million annualized rate last month. The Dow Jones Industrial Average advanced 1.59 per cent; the Nasdaq Composite rallied 2.21 per cent while S&P 500 jumped 1.65 per cent.
