Pre Session-Bearish opening on the cards for Sensex on Asia weakness
01/04/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday on the first day of the April derivative series, tracking a bearish trend in fellow Asian markets and a tepid finish at Wall Street overnight as investors weigh S&P’s warning over a deterioration in China’s credit profile while jitters ahead of US March jobs data which may help offer more cues over the timing of the next Fed interest rate hike also soured sentiment in risky assets. Weakness in the CNX Nifty Index futures for April delivery which fell by 0.48 per cent or 37.5 points at 7,750 at 10:35 am Singapore time, signal that Dalal Street may open lower today. Caution ahead of the RBI’s monetary policy meet on Tuesday in which the central bank is likely to deliver a 25 bps cut in its repo rate amid the government’s vow to stick to fiscal prudence, and softening inflation, may weigh on sentiment. Meanwhile, the Asian Development Bank (ADB) expects the Indian economy to grow by 7.4 per cent in FY 2016-17, lower than the 7.6 per cent estimated in FY 2015-16 while growth may pickup upon successful implementation of key tax and labour market reforms and opening up of FDI and trade. Marking a soft end to the FY 2015-16, the 30-share Sensex on Thursday ended flat – up by 3.28 points or by 0.01 per cent at 25,341.86 as traders rolled over their positions on the day of the expiry of the March futures & options (F&O) contracts.
Asian stocks retreated ahead of key US jobs and manufacturing data which may offer cues over the health of the world’s biggest economy. China’s Shanghai Composite fell as a reduction in the country’s credit rating outlook overshadowed the first expansion in manufacturing since July. Leading global rating agency Standard & Poor’s (S&P) cut the credit rating outlook of China to negative from stable, as it warned that economic rebalancing in the Asian powerhouse is likely to proceed more slowly than previously anticipated. The official China factory gauge rose to 50.2 in March, above the neutral 50-mark. Hang Seng fell and Japan’s Nikkei 225 plunged 2.7 per cent as a stronger yen eroded the appeal of exporter stocks. US stocks ended mostly lower as jobless claims surged to a two-month high last week, signaling a moderating labour market recovery. The number of Americans who filed applications to seek jobless benefits rose 11,000 to 276,000 last week. The Dow Jones Industrial Average fell 0.18 per cent; the Nasdaq Composite advanced 0.01 per cent while S&P 500 declined 0.20 per cent.
01/04/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday on the first day of the April derivative series, tracking a bearish trend in fellow Asian markets and a tepid finish at Wall Street overnight as investors weigh S&P’s warning over a deterioration in China’s credit profile while jitters ahead of US March jobs data which may help offer more cues over the timing of the next Fed interest rate hike also soured sentiment in risky assets. Weakness in the CNX Nifty Index futures for April delivery which fell by 0.48 per cent or 37.5 points at 7,750 at 10:35 am Singapore time, signal that Dalal Street may open lower today. Caution ahead of the RBI’s monetary policy meet on Tuesday in which the central bank is likely to deliver a 25 bps cut in its repo rate amid the government’s vow to stick to fiscal prudence, and softening inflation, may weigh on sentiment. Meanwhile, the Asian Development Bank (ADB) expects the Indian economy to grow by 7.4 per cent in FY 2016-17, lower than the 7.6 per cent estimated in FY 2015-16 while growth may pickup upon successful implementation of key tax and labour market reforms and opening up of FDI and trade. Marking a soft end to the FY 2015-16, the 30-share Sensex on Thursday ended flat – up by 3.28 points or by 0.01 per cent at 25,341.86 as traders rolled over their positions on the day of the expiry of the March futures & options (F&O) contracts.
Asian stocks retreated ahead of key US jobs and manufacturing data which may offer cues over the health of the world’s biggest economy. China’s Shanghai Composite fell as a reduction in the country’s credit rating outlook overshadowed the first expansion in manufacturing since July. Leading global rating agency Standard & Poor’s (S&P) cut the credit rating outlook of China to negative from stable, as it warned that economic rebalancing in the Asian powerhouse is likely to proceed more slowly than previously anticipated. The official China factory gauge rose to 50.2 in March, above the neutral 50-mark. Hang Seng fell and Japan’s Nikkei 225 plunged 2.7 per cent as a stronger yen eroded the appeal of exporter stocks. US stocks ended mostly lower as jobless claims surged to a two-month high last week, signaling a moderating labour market recovery. The number of Americans who filed applications to seek jobless benefits rose 11,000 to 276,000 last week. The Dow Jones Industrial Average fell 0.18 per cent; the Nasdaq Composite advanced 0.01 per cent while S&P 500 declined 0.20 per cent.
