Pre Session-Flat opening seen for Sensex ahead of F8O expiry
31/03/2016
Indian equity benchmarks are likely to open little changed on Thursday amidst a mixed trend across stocks in Asia and ahead of the March derivative expiry, sapping risk taking appetite. The CNX Nifty Index futures for March delivery, was trading unchanged at 7,745 at 10:32 am Singapore time, signaling that Dalal Street may open flat today. Volatility may remain high at the local bourses as traders roll over their positions on the day of the expiry of the March futures & options (F&O) contracts. The Sensex, meanwhile remains supported by optimism over delayed further Fed interest rate hikes with Chicago Fed President Charles Evans backing Fed Chair Janet Yellen, expressing concerns over global volatility that could slow US growth, diminishing the chances of further rate tightening in the near-term. Hopes that the RBI will cut interest rates next week amid the government’s vow to stick to fiscal prudence and softening inflation has bolstered foreign investor inflows with global funds having poured in a whopping USD 3.2 billion into local stocks in March, the most since March 2014. On Wednesday, the 30-share Sensex posted its biggest single-day percentage gain in about a month, rallying by a massive 438.12 points or by 1.76 per cent to end at 25,338.58 on dovish comments by Fed Chair Janet Yellen who called for a cautious approach to further rate hikes.
Asian stocks were trading mixed even as optimism that the Fed will raise interest rates slowly continued to support sentiment. Chicago Fed President Charles Evans stressed that the Fed is ready to tolerate above-target inflation for a brief period as a slowing global economy threatens to hurt US growth, diminishing the chances of a rate hike in the near-term. Evans said that the world’s biggest economy will probably be able to handle two rate hikes in 2016 but bets of that happening in April has strongly diminished. China’s Shanghai Composite scored modest gains, Hang Seng declined and Japan’s Nikkei 225 was trading tad lower as traders looked ahead to tomorrow’s US jobs data. Wall Street on Wednesday extended a rally, with benchmark S&P 500 rising for a third straight day, posting its strongest gain in two weeks as the US Fed signaled caution over a further hike in borrowing costs amid heightened global risks. Meanwhile, private payrolls in the US rose by 200,000 in March, compared to 205,000 in February. The Dow Jones Industrial Average climbed 0.47 per cent; the Nasdaq Composite advanced 0.47 per cent while S&P 500 rose 0.44 per cent.
31/03/2016
Indian equity benchmarks are likely to open little changed on Thursday amidst a mixed trend across stocks in Asia and ahead of the March derivative expiry, sapping risk taking appetite. The CNX Nifty Index futures for March delivery, was trading unchanged at 7,745 at 10:32 am Singapore time, signaling that Dalal Street may open flat today. Volatility may remain high at the local bourses as traders roll over their positions on the day of the expiry of the March futures & options (F&O) contracts. The Sensex, meanwhile remains supported by optimism over delayed further Fed interest rate hikes with Chicago Fed President Charles Evans backing Fed Chair Janet Yellen, expressing concerns over global volatility that could slow US growth, diminishing the chances of further rate tightening in the near-term. Hopes that the RBI will cut interest rates next week amid the government’s vow to stick to fiscal prudence and softening inflation has bolstered foreign investor inflows with global funds having poured in a whopping USD 3.2 billion into local stocks in March, the most since March 2014. On Wednesday, the 30-share Sensex posted its biggest single-day percentage gain in about a month, rallying by a massive 438.12 points or by 1.76 per cent to end at 25,338.58 on dovish comments by Fed Chair Janet Yellen who called for a cautious approach to further rate hikes.
Asian stocks were trading mixed even as optimism that the Fed will raise interest rates slowly continued to support sentiment. Chicago Fed President Charles Evans stressed that the Fed is ready to tolerate above-target inflation for a brief period as a slowing global economy threatens to hurt US growth, diminishing the chances of a rate hike in the near-term. Evans said that the world’s biggest economy will probably be able to handle two rate hikes in 2016 but bets of that happening in April has strongly diminished. China’s Shanghai Composite scored modest gains, Hang Seng declined and Japan’s Nikkei 225 was trading tad lower as traders looked ahead to tomorrow’s US jobs data. Wall Street on Wednesday extended a rally, with benchmark S&P 500 rising for a third straight day, posting its strongest gain in two weeks as the US Fed signaled caution over a further hike in borrowing costs amid heightened global risks. Meanwhile, private payrolls in the US rose by 200,000 in March, compared to 205,000 in February. The Dow Jones Industrial Average climbed 0.47 per cent; the Nasdaq Composite advanced 0.47 per cent while S&P 500 rose 0.44 per cent.
