Pre Session-Positive opening seen for Dalal Street on dovish Yellen comments
30/03/2016
Indian equity benchmarks are set to witness a gap up opening on Wednesday tracking a mostly bullish trend in fellow Asian peers and a positive finish at Wall Street overnight after Fed Chair Janet Yellen signaled caution over raising interest rates in the near-term amid worries over a global slowdown hurting growth in the world’s biggest economy, bolstering risk taking appetite. A diminished chance of a Fed rate hike next month eased worries that a strengthening dollar may sap demand for riskier assets. Strength in the CNX Nifty Index futures for March delivery, which advanced by 0.81 per cent or 62.5 points at 7,676 at 10:38 am Singapore time, signals that Dalal Street may open higher 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. The focus domestically remains firmly on the RBI policy meet next week in which the central bank is expected to deliver a 25 bps interest rate cut as softening inflation and solid fiscal consolidation open the door for further monetary easing in Asia’s third biggest economy. On Tuesday, the 30-share SENSEX closed at 24,900.46, down by 65.94 points or by 0.26 per cent with pharma shares leading the decline on US regulatory concerns.
Most Asian stocks rose after Fed Chair Janet Yellen called for a slower pace of US interest rate tightening as she stressed that the rate of inflation in the US hasn’t yet proven to be sustainable in the wake of rising global risks that could slow growth in the American economy. China’s Shanghai Composite soared by more than 1.5 per cent led by a rise in financial and commodity shares, Hang Seng jumped over 1.6 per cent while Japan’s Nikkei 225 fell as a stronger yen eroded the lure for exporter stocks. Yellen’s signal over a cautious approach to raising borrowing costs lifted US stocks on Tuesday while sentiment was also boosted after a gauge measuring US consumer confidence climbed to 96.2 in March from 94 in February. The Dow Jones Industrial Average climbed 0.56 per cent; the Nasdaq Composite advanced 1.67 per cent while S&P 500 rose 0.88 per cent.
30/03/2016
Indian equity benchmarks are set to witness a gap up opening on Wednesday tracking a mostly bullish trend in fellow Asian peers and a positive finish at Wall Street overnight after Fed Chair Janet Yellen signaled caution over raising interest rates in the near-term amid worries over a global slowdown hurting growth in the world’s biggest economy, bolstering risk taking appetite. A diminished chance of a Fed rate hike next month eased worries that a strengthening dollar may sap demand for riskier assets. Strength in the CNX Nifty Index futures for March delivery, which advanced by 0.81 per cent or 62.5 points at 7,676 at 10:38 am Singapore time, signals that Dalal Street may open higher 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. The focus domestically remains firmly on the RBI policy meet next week in which the central bank is expected to deliver a 25 bps interest rate cut as softening inflation and solid fiscal consolidation open the door for further monetary easing in Asia’s third biggest economy. On Tuesday, the 30-share SENSEX closed at 24,900.46, down by 65.94 points or by 0.26 per cent with pharma shares leading the decline on US regulatory concerns.
Most Asian stocks rose after Fed Chair Janet Yellen called for a slower pace of US interest rate tightening as she stressed that the rate of inflation in the US hasn’t yet proven to be sustainable in the wake of rising global risks that could slow growth in the American economy. China’s Shanghai Composite soared by more than 1.5 per cent led by a rise in financial and commodity shares, Hang Seng jumped over 1.6 per cent while Japan’s Nikkei 225 fell as a stronger yen eroded the lure for exporter stocks. Yellen’s signal over a cautious approach to raising borrowing costs lifted US stocks on Tuesday while sentiment was also boosted after a gauge measuring US consumer confidence climbed to 96.2 in March from 94 in February. The Dow Jones Industrial Average climbed 0.56 per cent; the Nasdaq Composite advanced 1.67 per cent while S&P 500 rose 0.88 per cent.
