Pre Session- Gap down opening on the cards for Dalal Street
21/03/2016
Indian equity benchmarks are poised to open lower on Monday tracking a mixed trend in markets across Asia as a retreat in oil prices and volatility amid the holiday-shortened week weighed on sentiment, curbing risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery, which fell by 0.25 per cent or 19 points at 7,593 at 10:33 am Singapore time, signal a bearish opening for the Sensex today. Volatility may remain high on the domestic bourses with traders likely to resort to profit taking after three straight week of gains and amidst caution ahead of the RBI monetary policy verdict early next month in which the central bank is likely to oblige with a 25 bps interest rate cut to help buoy demand and revive flagging investments in Asia’s third biggest economy. Dalal Street will be closed on Thursday and Friday for Holi and Good Friday, respectively. Due to lack of any major domestic trigger or macroeconomic data, movement in the domestic stock markets this week is likely to be dictated by foreign investment trend and global market sentiment. The Sensex on Friday advanced by 275.37 points or by 1.12 per cent, whilst logging a gain of 234.75 points for the week to end at two-month high of 24,952.74 as the Fed’s fairly dovish stance over future rate hikes lifted sentiment across the globe.
In Asia, China’s Shanghai Composite surged by more than 1.5 per cent and Hang Seng climbed, as policymakers vowed to loosen curbs on the Chinese stock market. China Securities Finance Corp. stressed that it will boost lending to brokerages for their margin trading business in measures aimed at boosting the country’s stock market which recently fell prey to a rout and leverage more than halved from last year’s peak. Japan’s Nikkei 225 was closed for a holiday, while markets in Singapore, Taiwan and South Korea fell as commodity producers dropped as crude oil prices slipped. Wall Street ended higher on Friday as sentiment continued to remain bullish after the Fed suggested a more dovish path to further rate hikes. Banks and healthcompanies were instrumental in Friday’s rally but traders cast aside data showing a dip in US consumer sentiment to a five-month low in March, raising doubts over the recovery in the world’s biggest economy. The gauge measuring consumer sentiment in the US fell to 90 in March from 91.7 in February. The Dow Jones Industrial Average climbed 0.69 per cent; the Nasdaq Composite advanced 0.43 per cent while S&P 500 rose 0.44 per cent.
21/03/2016
Indian equity benchmarks are poised to open lower on Monday tracking a mixed trend in markets across Asia as a retreat in oil prices and volatility amid the holiday-shortened week weighed on sentiment, curbing risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery, which fell by 0.25 per cent or 19 points at 7,593 at 10:33 am Singapore time, signal a bearish opening for the Sensex today. Volatility may remain high on the domestic bourses with traders likely to resort to profit taking after three straight week of gains and amidst caution ahead of the RBI monetary policy verdict early next month in which the central bank is likely to oblige with a 25 bps interest rate cut to help buoy demand and revive flagging investments in Asia’s third biggest economy. Dalal Street will be closed on Thursday and Friday for Holi and Good Friday, respectively. Due to lack of any major domestic trigger or macroeconomic data, movement in the domestic stock markets this week is likely to be dictated by foreign investment trend and global market sentiment. The Sensex on Friday advanced by 275.37 points or by 1.12 per cent, whilst logging a gain of 234.75 points for the week to end at two-month high of 24,952.74 as the Fed’s fairly dovish stance over future rate hikes lifted sentiment across the globe.
In Asia, China’s Shanghai Composite surged by more than 1.5 per cent and Hang Seng climbed, as policymakers vowed to loosen curbs on the Chinese stock market. China Securities Finance Corp. stressed that it will boost lending to brokerages for their margin trading business in measures aimed at boosting the country’s stock market which recently fell prey to a rout and leverage more than halved from last year’s peak. Japan’s Nikkei 225 was closed for a holiday, while markets in Singapore, Taiwan and South Korea fell as commodity producers dropped as crude oil prices slipped. Wall Street ended higher on Friday as sentiment continued to remain bullish after the Fed suggested a more dovish path to further rate hikes. Banks and healthcompanies were instrumental in Friday’s rally but traders cast aside data showing a dip in US consumer sentiment to a five-month low in March, raising doubts over the recovery in the world’s biggest economy. The gauge measuring consumer sentiment in the US fell to 90 in March from 91.7 in February. The Dow Jones Industrial Average climbed 0.69 per cent; the Nasdaq Composite advanced 0.43 per cent while S&P 500 rose 0.44 per cent.
