Pre Session-Gap up opening on the cards for Sensex
04/03/2016
Indian equity benchmarks are poised to witness a positive opening on Friday as optimism over the union budget proposals that has given leeway to the Reserve Bank of India (RBI) to ease monetary policy further continues to drive risk taking appetite in Asia’s third biggest economy. Strength in the CNX Nifty Index futures for March delivery which climbed by 0.47 per cent or by 35.5 points at 7,476 at 10:30 am Singapore time, signals that Dalal Street may open higher today. The government’s move to maintain its fiscal shortfall target of 3.5 per cent of the GDP for FY 2016-17, the smallest gap in nine years has raised speculation of a near-term interest rate cut of at least 25 bps by the central bank to help power a revival in demand and investment growth. Cooling services growth which hit a three-month low in February has also bolstered the case for further monetary policy easing. The Nikkei Services Business Activity Index fell to 51.4 in February 2016 from 54.3 in January 2016, with a reading above 50 signaling expansion. Marking a three- day rally, the 30-share Sensex on Thursday advanced by 364.01 points or by 1.5 per cent to end at 24,606.99 led by an over 7 per cent gain in Tata Steel amid speculation of a bailout package for indebted local metal producers as reports suggested that the steel ministry is working with banks and policy advisors to weigh the feasibility of such a package.
Asian stocks were trading mixed today as caution prevailed ahead of a meeting of Chinese leaders, and the much anticipated US jobs data which may offer further cues over the health of the labour market of the world’s biggest economy. The US economy may have created 190,000 jobs in February, up from 151,000 in January, analysts estimates showed. Upbeat jobs data may put a near-term Fed rate hike back on the table. China’s Shanghai Composite fell led by a retreat in shares of real estate and financial companies while traders eyed a meeting of Chinese leaders on Saturday where fresh measures to boost growth in the world’s second biggest economy may be unveiled. Hang Seng rose but Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street rallied on Thursday as energy shares climbed while investors awaited the February jobs data which may provide an insight into the trajectory of the Federal Reserve’s approach to raising interest rates further. Meanwhile, US services growth cooled in February as the gauge fell to 53.4 from January’s 53.5, factory orders rebounded to a 1.6 per cent gain in January while jobless claims climbed 6,000 to 278,000 last week, offering a mixed picture of the economy’s health. The Dow Jones Industrial Average rallied 0.26 per cent; the Nasdaq Composite advanced 0.09 per cent while S&P 500 climbed 0.35 per cent.
04/03/2016
Indian equity benchmarks are poised to witness a positive opening on Friday as optimism over the union budget proposals that has given leeway to the Reserve Bank of India (RBI) to ease monetary policy further continues to drive risk taking appetite in Asia’s third biggest economy. Strength in the CNX Nifty Index futures for March delivery which climbed by 0.47 per cent or by 35.5 points at 7,476 at 10:30 am Singapore time, signals that Dalal Street may open higher today. The government’s move to maintain its fiscal shortfall target of 3.5 per cent of the GDP for FY 2016-17, the smallest gap in nine years has raised speculation of a near-term interest rate cut of at least 25 bps by the central bank to help power a revival in demand and investment growth. Cooling services growth which hit a three-month low in February has also bolstered the case for further monetary policy easing. The Nikkei Services Business Activity Index fell to 51.4 in February 2016 from 54.3 in January 2016, with a reading above 50 signaling expansion. Marking a three- day rally, the 30-share Sensex on Thursday advanced by 364.01 points or by 1.5 per cent to end at 24,606.99 led by an over 7 per cent gain in Tata Steel amid speculation of a bailout package for indebted local metal producers as reports suggested that the steel ministry is working with banks and policy advisors to weigh the feasibility of such a package.
Asian stocks were trading mixed today as caution prevailed ahead of a meeting of Chinese leaders, and the much anticipated US jobs data which may offer further cues over the health of the labour market of the world’s biggest economy. The US economy may have created 190,000 jobs in February, up from 151,000 in January, analysts estimates showed. Upbeat jobs data may put a near-term Fed rate hike back on the table. China’s Shanghai Composite fell led by a retreat in shares of real estate and financial companies while traders eyed a meeting of Chinese leaders on Saturday where fresh measures to boost growth in the world’s second biggest economy may be unveiled. Hang Seng rose but Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street rallied on Thursday as energy shares climbed while investors awaited the February jobs data which may provide an insight into the trajectory of the Federal Reserve’s approach to raising interest rates further. Meanwhile, US services growth cooled in February as the gauge fell to 53.4 from January’s 53.5, factory orders rebounded to a 1.6 per cent gain in January while jobless claims climbed 6,000 to 278,000 last week, offering a mixed picture of the economy’s health. The Dow Jones Industrial Average rallied 0.26 per cent; the Nasdaq Composite advanced 0.09 per cent while S&P 500 climbed 0.35 per cent.
