Pre Session- Sensex may open lower amid Asia weakness
29/03/2016
Indian equity benchmarks are likely to witness a gap down opening on Tuesday tracking tepid cues from fellow Asian peers and a flattish closing at Wall Street overnight as investors remain jittery over the trajectory for US interest rates. Weakness in the CNX Nifty Index futures for March delivery, which fell by 0.10 per cent or 7.5 points at 7,650 at 10:35 am Singapore time, signals that Dalal Street may open on a negative note today. Volatility may remain high at the local bourses as traders roll over their positions ahead of the expiry of the March futures & options (F&O) contracts this Thursday. Caution ahead of next week’s monetary policy meet of the RBI in which the central bank is expected to deliver a 25 bps interest rate cut, may continue to weigh on sentiment. The government’s pledge in the Union Budget to stick to its path of fiscal prudence has given the central bank some leeway to undertake further monetary easing to help buoy growth in Asia’s third biggest economy. Marking their biggest single-day fall in five weeks, Indian equity benchmarks plunged by more than 1 per cent on Monday as traders resorted to profit booking after a fourth straight weekly rally ahead of key events including US jobs data and Fed Chair Janet Yellen’s speech, and March derivative expiry. The BSE SENSEX closed at 24,966.4, down by 371.16 points or by 1.46 per cent and the NSE Nifty ended at 7,615.1, down by 101.4 points or by 1.31 per cent.
Asian stocks fell led by losses in health care stocks as traders stuck to a cautious tone ahead of key US reports on employment, manufacturing, housing, consumer confidence and Fed Chair Janet Yellen’s speech this week, which may offer further clues over the course of US interest rates. China’s Shanghai Composite dropped for a second straight day led by losses in technology and property companies as Shenzhen also introduced real estate curbs last week, joining Shanghai. Hang Seng was trading with slim losses as it reopened after the Easter break and Japan’s Nikkei 225 retreated amidst mixed economic data as a rise in household spending was accompanied by an increase in the country’s jobless rate. Wall Street ended little changed on Monday as traders assessed mixed US economic data which showed that consumer spending barely rose in February but contracts to purchase US existing homes rebounded. Household spending in the US climbed by 0.1 per cent for a third straight month in February while the index measuring pending home sales rose 3.5 per cent in February over the prior month, the biggest gain in a year. The Dow Jones Industrial Average climbed 0.11 per cent; the Nasdaq Composite fell 0.14 per cent while S&P 500 rose 0.05 per cent.
29/03/2016
Indian equity benchmarks are likely to witness a gap down opening on Tuesday tracking tepid cues from fellow Asian peers and a flattish closing at Wall Street overnight as investors remain jittery over the trajectory for US interest rates. Weakness in the CNX Nifty Index futures for March delivery, which fell by 0.10 per cent or 7.5 points at 7,650 at 10:35 am Singapore time, signals that Dalal Street may open on a negative note today. Volatility may remain high at the local bourses as traders roll over their positions ahead of the expiry of the March futures & options (F&O) contracts this Thursday. Caution ahead of next week’s monetary policy meet of the RBI in which the central bank is expected to deliver a 25 bps interest rate cut, may continue to weigh on sentiment. The government’s pledge in the Union Budget to stick to its path of fiscal prudence has given the central bank some leeway to undertake further monetary easing to help buoy growth in Asia’s third biggest economy. Marking their biggest single-day fall in five weeks, Indian equity benchmarks plunged by more than 1 per cent on Monday as traders resorted to profit booking after a fourth straight weekly rally ahead of key events including US jobs data and Fed Chair Janet Yellen’s speech, and March derivative expiry. The BSE SENSEX closed at 24,966.4, down by 371.16 points or by 1.46 per cent and the NSE Nifty ended at 7,615.1, down by 101.4 points or by 1.31 per cent.
Asian stocks fell led by losses in health care stocks as traders stuck to a cautious tone ahead of key US reports on employment, manufacturing, housing, consumer confidence and Fed Chair Janet Yellen’s speech this week, which may offer further clues over the course of US interest rates. China’s Shanghai Composite dropped for a second straight day led by losses in technology and property companies as Shenzhen also introduced real estate curbs last week, joining Shanghai. Hang Seng was trading with slim losses as it reopened after the Easter break and Japan’s Nikkei 225 retreated amidst mixed economic data as a rise in household spending was accompanied by an increase in the country’s jobless rate. Wall Street ended little changed on Monday as traders assessed mixed US economic data which showed that consumer spending barely rose in February but contracts to purchase US existing homes rebounded. Household spending in the US climbed by 0.1 per cent for a third straight month in February while the index measuring pending home sales rose 3.5 per cent in February over the prior month, the biggest gain in a year. The Dow Jones Industrial Average climbed 0.11 per cent; the Nasdaq Composite fell 0.14 per cent while S&P 500 rose 0.05 per cent.
