Pre Session- Gap up opening on the cards for Sensex amid global rally
18/03/2016
Indian equity benchmarks are likely to witness a bullish opening on Friday tracking strength across most Asian equities and a positive finish at Wall Street overnight as the US Federal Reserve’s indication that it will raise interest rates more slowly than earlier anticipated, coupled with a rebound in oil prices eased concerns over the health of the global economy, bolstering risk appetite. Gains in the CNX Nifty Index futures for March delivery, which climbed by 0.78 per cent or 59 points at 7,548 at 10:26 am Singapore time, signal a bullish opening for the Sensex today. A slower pace of US monetary tightening may increase the lure for higher yielding assets, bolstering foreign fund inflows into Asia’s third biggest economy. Meanwhile, rising speculation of an interest rate cut by the Reserve Bank of India (RBI) at its upcoming policy meet on April 5, 2016 may continue to support sentiment at Dalal Street. With the government sticking to its vow of maintaining fiscal prudence in the Union Budget, and consumer inflation easing in February, the central bank is likely to oblige with atleast a 25 basis points cut in its repo rate. The 30-share Sensex on Thursday ended tad lower, down by 5.11 points or 0.02 per cent at 24,677.37 on late selling in blue chips.
Most Asian stocks rose led by gains in material and commodity companies as oil topped the USD 40 per barrel mark. China’s Shanghai Composite climbed after data showed that new home prices rose in 47 cities in February, up from 38 in January, signaling a recovering property market, while the Yuan strengthened after China’s central bank raised its reference rate by the most since November. Hang Seng logged handsome gains but Japan’s Nikkei 225 plunged over 1.7 per cent after a stronger yen curbed the appeal of exporter stocks. Wall Street ended higher as global central banks indicated willingness to help support an economic recovery while US economic data showed strength as fewer than expected Americans filed to claim jobless claims which rose 7,000 to 265,000. US job openings increased by 260,000 to 5.54 million in January, leading index climbed 0.1 per cent in February from January when it fell 0.2 per cent. Further, a gauge measuring manufacturing in Philadelphia rose to 12.4 in March from -2.8 in February, with a reading above 0 signaling expansion. The Dow Jones Industrial Average climbed 0.90 per cent; the Nasdaq Composite advanced 0.23 per cent while S&P 500 rose 0.66 per cent.
18/03/2016
Indian equity benchmarks are likely to witness a bullish opening on Friday tracking strength across most Asian equities and a positive finish at Wall Street overnight as the US Federal Reserve’s indication that it will raise interest rates more slowly than earlier anticipated, coupled with a rebound in oil prices eased concerns over the health of the global economy, bolstering risk appetite. Gains in the CNX Nifty Index futures for March delivery, which climbed by 0.78 per cent or 59 points at 7,548 at 10:26 am Singapore time, signal a bullish opening for the Sensex today. A slower pace of US monetary tightening may increase the lure for higher yielding assets, bolstering foreign fund inflows into Asia’s third biggest economy. Meanwhile, rising speculation of an interest rate cut by the Reserve Bank of India (RBI) at its upcoming policy meet on April 5, 2016 may continue to support sentiment at Dalal Street. With the government sticking to its vow of maintaining fiscal prudence in the Union Budget, and consumer inflation easing in February, the central bank is likely to oblige with atleast a 25 basis points cut in its repo rate. The 30-share Sensex on Thursday ended tad lower, down by 5.11 points or 0.02 per cent at 24,677.37 on late selling in blue chips.
Most Asian stocks rose led by gains in material and commodity companies as oil topped the USD 40 per barrel mark. China’s Shanghai Composite climbed after data showed that new home prices rose in 47 cities in February, up from 38 in January, signaling a recovering property market, while the Yuan strengthened after China’s central bank raised its reference rate by the most since November. Hang Seng logged handsome gains but Japan’s Nikkei 225 plunged over 1.7 per cent after a stronger yen curbed the appeal of exporter stocks. Wall Street ended higher as global central banks indicated willingness to help support an economic recovery while US economic data showed strength as fewer than expected Americans filed to claim jobless claims which rose 7,000 to 265,000. US job openings increased by 260,000 to 5.54 million in January, leading index climbed 0.1 per cent in February from January when it fell 0.2 per cent. Further, a gauge measuring manufacturing in Philadelphia rose to 12.4 in March from -2.8 in February, with a reading above 0 signaling expansion. The Dow Jones Industrial Average climbed 0.90 per cent; the Nasdaq Composite advanced 0.23 per cent while S&P 500 rose 0.66 per cent.
