Pre Session- Gap down opening seen for Sensex on Asia sell-off
26/04/2016
The key domestic equity benchmarks are likely to open on a bearish note on Tuesday tracking weakness in Asian stocks as traders remained wary ahead of the start of the two-day US Federal Reserve’s monetary policy meeting today which could offer some cues over whether the world’s top central bank plans to raise interest rates this year, curbing risk taking appetite. While Shanghai Composite succumbed to mild losses and Hang Seng fell, Japan’s benchmark gauge, the Nikkei 225 tumbled by over 1 per cent as investors stuck to a cautious approach ahead of this week’s Bank of Japan meet amidst speculation of a stimulus boost to revive economic growth. Meanwhile, Wall Street succumbed to a negative finish on Monday on Fed & corporate earnings caution, plunging oil prices and signs of a faltering economic recovery with US new home sales falling for a third straight month in March, down 1.5 per cent.
A drop n the CNX Nifty Index Futures for April delivery, which fell by 0.44 per cent or 34.5 points at 7,840.5 at 10:51AM Singapore time, also signals that Dalal Street may open lower today. The focus will be on the shares of Maruti, Axis Bank, IDFC Bank and Biocon as they report their Q4 earnings. Volatility may remain high at the local bourses as traders roll over their positions ahead of Thursday’s April derivative expiry.
26/04/2016
The key domestic equity benchmarks are likely to open on a bearish note on Tuesday tracking weakness in Asian stocks as traders remained wary ahead of the start of the two-day US Federal Reserve’s monetary policy meeting today which could offer some cues over whether the world’s top central bank plans to raise interest rates this year, curbing risk taking appetite. While Shanghai Composite succumbed to mild losses and Hang Seng fell, Japan’s benchmark gauge, the Nikkei 225 tumbled by over 1 per cent as investors stuck to a cautious approach ahead of this week’s Bank of Japan meet amidst speculation of a stimulus boost to revive economic growth. Meanwhile, Wall Street succumbed to a negative finish on Monday on Fed & corporate earnings caution, plunging oil prices and signs of a faltering economic recovery with US new home sales falling for a third straight month in March, down 1.5 per cent.
A drop n the CNX Nifty Index Futures for April delivery, which fell by 0.44 per cent or 34.5 points at 7,840.5 at 10:51AM Singapore time, also signals that Dalal Street may open lower today. The focus will be on the shares of Maruti, Axis Bank, IDFC Bank and Biocon as they report their Q4 earnings. Volatility may remain high at the local bourses as traders roll over their positions ahead of Thursday’s April derivative expiry.
