Pre Session- Flat opening on the cards for Sensex on subdued global trend; IIP data eyed
11/03/2016
Indian equity benchmarks are likely to open little changed on Friday tracking weakness across most markets in Asia and a subdued finish at Wall Street overnight as the European Central Bank (ECB) stimulus bazooka failed to lift investor sentiment. The CNX Nifty Index futures for March delivery were trading higher by 0.03 per cent or by 2 points at 7,490 at 10:18 am Singapore time, signaling that Dalal Street may open on a flat note today. Unleashing its biggest stimulus package yet, the Frankfurt-based ECB slashed all of its key rates while expanding the scope of its bond buying program. The ECB cut its deposit rate by 10 basis points to -0.4 per cent while the benchmark rate was lowered to 0 from 0.05 per cent and monthly bond purchases were increased to 80 billion euro from 60 billion euro with corporate bonds now eligible. However, the ECB’s signal that there won’t be any more rate cuts soured the mood, fueling doubts over the ability of central banks to help prop up a fast faltering global economic recovery and jump start inflation. The focus now is on next week’s Bank of Japan and US Federal Reserve meetings. Back home, caution ahead of January IIP data which may offer further cues over the health of Asia’s third biggest economy, set for release in after market hours today, may keep traders on the sidelines. India’s industrial output probably contracted for a third month on the trot, shrinking 0.5 per cent in January 2016 from the same month a year ago, following a 1.3 per cent contraction in December 2015. Snapping a six-day rally, the 30-share Sensex on Thursday tanked 170.62 points or by 0.69 per cent to end at 24,623.34 as investors indulged in profit booking at existing levels.
Most Asian markets were trading lower as the ECB’s latest stimulus package failed to strike a chord with investors as Mario Draghi’s statement that he doesn’t expect further rate cuts soured risk taking appetite. Caution ahead of China’s industrial output, retail sales and fixed asset numbers due on Saturday also weighed. China’s Shanghai Composite fell as likely state intervention failed to restore confidence in the world’s worst performing equity market. Hang Seng logged modest gains and Japan’s Nikkei 225 tumbled after a report showed that business sentiment among large Japanese manufacturers worsened in the first quarter. Wall Street ended on a tepid note on Thursday as the ECB stimulus failed to ease investor anxiety but sentiment was supported by upbeat labour market data as jobless claims plummeted to a five-month low, down by 18,000 to 259,000 last week. The Dow Jones Industrial Average fell 0.03 per cent; the Nasdaq Composite declined 0.26 per cent while S&P 500 rose 0.02 per cent.
11/03/2016
Indian equity benchmarks are likely to open little changed on Friday tracking weakness across most markets in Asia and a subdued finish at Wall Street overnight as the European Central Bank (ECB) stimulus bazooka failed to lift investor sentiment. The CNX Nifty Index futures for March delivery were trading higher by 0.03 per cent or by 2 points at 7,490 at 10:18 am Singapore time, signaling that Dalal Street may open on a flat note today. Unleashing its biggest stimulus package yet, the Frankfurt-based ECB slashed all of its key rates while expanding the scope of its bond buying program. The ECB cut its deposit rate by 10 basis points to -0.4 per cent while the benchmark rate was lowered to 0 from 0.05 per cent and monthly bond purchases were increased to 80 billion euro from 60 billion euro with corporate bonds now eligible. However, the ECB’s signal that there won’t be any more rate cuts soured the mood, fueling doubts over the ability of central banks to help prop up a fast faltering global economic recovery and jump start inflation. The focus now is on next week’s Bank of Japan and US Federal Reserve meetings. Back home, caution ahead of January IIP data which may offer further cues over the health of Asia’s third biggest economy, set for release in after market hours today, may keep traders on the sidelines. India’s industrial output probably contracted for a third month on the trot, shrinking 0.5 per cent in January 2016 from the same month a year ago, following a 1.3 per cent contraction in December 2015. Snapping a six-day rally, the 30-share Sensex on Thursday tanked 170.62 points or by 0.69 per cent to end at 24,623.34 as investors indulged in profit booking at existing levels.
Most Asian markets were trading lower as the ECB’s latest stimulus package failed to strike a chord with investors as Mario Draghi’s statement that he doesn’t expect further rate cuts soured risk taking appetite. Caution ahead of China’s industrial output, retail sales and fixed asset numbers due on Saturday also weighed. China’s Shanghai Composite fell as likely state intervention failed to restore confidence in the world’s worst performing equity market. Hang Seng logged modest gains and Japan’s Nikkei 225 tumbled after a report showed that business sentiment among large Japanese manufacturers worsened in the first quarter. Wall Street ended on a tepid note on Thursday as the ECB stimulus failed to ease investor anxiety but sentiment was supported by upbeat labour market data as jobless claims plummeted to a five-month low, down by 18,000 to 259,000 last week. The Dow Jones Industrial Average fell 0.03 per cent; the Nasdaq Composite declined 0.26 per cent while S&P 500 rose 0.02 per cent.
