Pre Session- Sensex may open lower as Budget eyed
29/02/2016
Indian equity benchmarks are likely to open on a negative note on Monday as traders resort to a cautious stance ahead of the Union Budget 2016-17 to be presented by Finance Minister Arun Jaitley later in the day, dimming risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery that fell by 0.53 per cent or by 37.5 points at 7,027.5 at 10:27 am Singapore time, signals that the Sensex may witness a gap down opening today. The Budget is expected to be growth oriented with measures to bolster investment as a global slowdown hurts exports. Jaitley faces a challenging task amidst pressure to rein in the fiscal deficit on higher outgo on wages and salaries to civil servants and the urge to bolster spending in Asia’s third biggest economy. Focus will be on the banking sector especially PSU lenders which have been plagued by ballooning bad loans that have hindered their ability to bolster credit growth. Volatility may remain high on the bourses during the day as investors react to the Budget. Snapping a three-day losing streak, the 30-share Sensex on Friday rallied by 178.3 points or by 0.78 per cent to end at 23,154.3 as the Economic Survey revised upward the country’s economic growth range to 7 to 7.75 per cent for 2015-16 from an earlier government projection of 7 to 7.5 per cent.
Asian stocks were trading mixed following the conclusion of the G20 meet in Shanghai in which finance chiefs from the G-20 reached an agreement to consult closely on foreign exchange markets and reiterated past commitment to refrain from competitive devaluations. China’s Shanghai Composite tumbled over 3.5 per cent and Hang Seng fell close to 1 per cent ahead of tomorrow’s PMI data which may offer further cues over the health of the world's second biggest economy. Japan’s Nikkei 225 advanced as G20 leaders committed to use fiscal policy to bolster economic growth and job creation. Most stocks at Wall Street ended lower on Friday as robust data signaled strength in the world’s biggest economy, raising speculation that interest rates may rise sooner than earlier expected. The US economy grew at a 1 per cent annualized pace in Q4 2015, up from an initial estimate of 0.7 per cent. Consumer spending grew the most in eight months, up 0.5 per cent in January from December, when it climbed 0.1 per cent. The Dow Jones Industrial Average fell 0.34 per cent; the Nasdaq Composite rallied 0.18 per cent while S&P 500 declined 0.19 per cent.
29/02/2016
Indian equity benchmarks are likely to open on a negative note on Monday as traders resort to a cautious stance ahead of the Union Budget 2016-17 to be presented by Finance Minister Arun Jaitley later in the day, dimming risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery that fell by 0.53 per cent or by 37.5 points at 7,027.5 at 10:27 am Singapore time, signals that the Sensex may witness a gap down opening today. The Budget is expected to be growth oriented with measures to bolster investment as a global slowdown hurts exports. Jaitley faces a challenging task amidst pressure to rein in the fiscal deficit on higher outgo on wages and salaries to civil servants and the urge to bolster spending in Asia’s third biggest economy. Focus will be on the banking sector especially PSU lenders which have been plagued by ballooning bad loans that have hindered their ability to bolster credit growth. Volatility may remain high on the bourses during the day as investors react to the Budget. Snapping a three-day losing streak, the 30-share Sensex on Friday rallied by 178.3 points or by 0.78 per cent to end at 23,154.3 as the Economic Survey revised upward the country’s economic growth range to 7 to 7.75 per cent for 2015-16 from an earlier government projection of 7 to 7.5 per cent.
Asian stocks were trading mixed following the conclusion of the G20 meet in Shanghai in which finance chiefs from the G-20 reached an agreement to consult closely on foreign exchange markets and reiterated past commitment to refrain from competitive devaluations. China’s Shanghai Composite tumbled over 3.5 per cent and Hang Seng fell close to 1 per cent ahead of tomorrow’s PMI data which may offer further cues over the health of the world's second biggest economy. Japan’s Nikkei 225 advanced as G20 leaders committed to use fiscal policy to bolster economic growth and job creation. Most stocks at Wall Street ended lower on Friday as robust data signaled strength in the world’s biggest economy, raising speculation that interest rates may rise sooner than earlier expected. The US economy grew at a 1 per cent annualized pace in Q4 2015, up from an initial estimate of 0.7 per cent. Consumer spending grew the most in eight months, up 0.5 per cent in January from December, when it climbed 0.1 per cent. The Dow Jones Industrial Average fell 0.34 per cent; the Nasdaq Composite rallied 0.18 per cent while S&P 500 declined 0.19 per cent.
