Pre Session-Gap up opening on the cards for Dalal Street
01/03/2016
Indian equity benchmarks are poised to witness a bullish opening on Tuesday after posting their biggest monthly loss in four years pulled down by a global sell-off and domestic concerns. Gains in the CNX Nifty Index futures for March delivery climbed by 0.57 per cent or by 40.5 points at 7,048 at 10:51 am Singapore time signaling that the Sensex may open higher today. However, volatility may remain high at the local bourses as traders continue to digest the Union Budget with tax proposals such as the dividend distribution tax (DDT) coming in as a major disappointment. The focus today will be on the Indian Manufacturing PMI which will offer fresh cues over the health of Asia’s third biggest economy. The 30-share Sensex on Monday tumbled 152.3 points or by 0.66 per cent to end at 23,002 as Arun Jaitley’s pro farmer budget failed to strike a chord with investors with nothing much for the markets to cheer about. The budget proposed an allocation of Rs 25,000 crore for recapitalization of state run banks, below the Rs 30,000 crore expected by the market.
Most Asian stocks were trading higher today after China cut the amount of reserves that banks are required to keep in reserve in an effort directed to boost lending and help combat a deepening slowdown in the world’s second biggest economy. The People’s Bank of China has cut the bank reserve requirement ratio by 0.5 percentage point, effective today. China’s Shanghai Composite climbed and Hang Seng rose as fresh central bank stimulus overshadowed data showing a continued Chinese factory contraction. China’s official manufacturing gauge came in at 49 in February, matching the lowest level in seven years, with a reading below 50 signaling contraction. Japan’s Nikkei 225 was trading lower as a stronger yen eroded the appeal of exporter stocks. Wall Street fell on Monday as traders weighed tepid housing data with pending home sales falling by the most in two years, down 2.5 per cent in January 2016, signaling a setback to the residential real estate market recovery in the world’s biggest economy. The Dow Jones Industrial Average fell 0.74 per cent; the Nasdaq Composite shed 0.71 per cent while S&P 500 declined 0.81 per cent.
01/03/2016
Indian equity benchmarks are poised to witness a bullish opening on Tuesday after posting their biggest monthly loss in four years pulled down by a global sell-off and domestic concerns. Gains in the CNX Nifty Index futures for March delivery climbed by 0.57 per cent or by 40.5 points at 7,048 at 10:51 am Singapore time signaling that the Sensex may open higher today. However, volatility may remain high at the local bourses as traders continue to digest the Union Budget with tax proposals such as the dividend distribution tax (DDT) coming in as a major disappointment. The focus today will be on the Indian Manufacturing PMI which will offer fresh cues over the health of Asia’s third biggest economy. The 30-share Sensex on Monday tumbled 152.3 points or by 0.66 per cent to end at 23,002 as Arun Jaitley’s pro farmer budget failed to strike a chord with investors with nothing much for the markets to cheer about. The budget proposed an allocation of Rs 25,000 crore for recapitalization of state run banks, below the Rs 30,000 crore expected by the market.
Most Asian stocks were trading higher today after China cut the amount of reserves that banks are required to keep in reserve in an effort directed to boost lending and help combat a deepening slowdown in the world’s second biggest economy. The People’s Bank of China has cut the bank reserve requirement ratio by 0.5 percentage point, effective today. China’s Shanghai Composite climbed and Hang Seng rose as fresh central bank stimulus overshadowed data showing a continued Chinese factory contraction. China’s official manufacturing gauge came in at 49 in February, matching the lowest level in seven years, with a reading below 50 signaling contraction. Japan’s Nikkei 225 was trading lower as a stronger yen eroded the appeal of exporter stocks. Wall Street fell on Monday as traders weighed tepid housing data with pending home sales falling by the most in two years, down 2.5 per cent in January 2016, signaling a setback to the residential real estate market recovery in the world’s biggest economy. The Dow Jones Industrial Average fell 0.74 per cent; the Nasdaq Composite shed 0.71 per cent while S&P 500 declined 0.81 per cent.
