Pre Session- Gap down opening seen for Dalal Street as RBI policy verdict eyed
05/04/2016
Indian equity benchmarks are poised to open lower on Tuesday as traders resort to a cautious approach ahead of the much anticipated Reserve Bank of India (RBI) monetary policy review while a bearish trend across markets in Asia amid falling oil prices may also sour risk taking appetite. Weakness in the CNX Nifty Index futures for April delivery which fell by 0.74 per cent or 57.5 points at 7,728 at 10:24 am Singapore time, signals that Dalal Street may witness a negative opening today. The RBI is likely to cut the repo rate by 25 basis points today as the government’s vow to stick to fiscal prudence, below target inflation and a recent reduction in the interest rates on small savings instruments have given the central bank additional room to bolster monetary easing in a bid to buoy demand and revive investments in Asia’s third biggest economy. Rate sensitive sectors including auto and banking will be in focus today. On the economic front, things seem to be looking up with manufacturing expanding at the quickest pace in eight months in March while the country is set to see a normal monsoon this year, which may buoy rural demand. The Nikkei India Manufacturing PMI rose for a third month on the trot, climbing from 51.1 in February to 52.4 in March, with a reading above 50 signaling expansion, Markit Economics reported on Monday. The 30-share Sensex on Monday jumped 130.01 points or by 0.51 per cent to end at 25,399.65 ahead of the RBI meet.
Asian markets fell to the lowest level in four weeks as emerging market currencies weakened and oil extended a decline. Investors took a breather after a recent stellar rally as they focus on central bank efforts to continue supporting the global economy. Traders are eying the FOMC minutes to be released on Wednesday which may offer further cues over the timing of the next Fed interest rate hike. China’s Shanghai Composite fell as traders returned to their desks after a holiday, Hang Seng slumped over 1 per cent and Japan’s Nikkei 225 shed almost 2 per cent as a stronger yen eroded the appeal of exporter stocks. Wall Street ended lower on Monday, slipping from the highest levels this year amidst losses in consumer and industrial shares as traders resorted to profit booking after stocks marked a sixth straight weekly gain in seven weeks. Weak macro data weighed on sentiment as the Fed’s Labour Market Conditions Index fell to -2.1 in March, the weakest since June 2009 while US factory orders tumbled 1.7 per cent in February. The Dow Jones Industrial Average fell 0.31 per cent, the Nasdaq Composite declined 0.46 per cent while S&P 500 dipped 0.32 per cent.
05/04/2016
Indian equity benchmarks are poised to open lower on Tuesday as traders resort to a cautious approach ahead of the much anticipated Reserve Bank of India (RBI) monetary policy review while a bearish trend across markets in Asia amid falling oil prices may also sour risk taking appetite. Weakness in the CNX Nifty Index futures for April delivery which fell by 0.74 per cent or 57.5 points at 7,728 at 10:24 am Singapore time, signals that Dalal Street may witness a negative opening today. The RBI is likely to cut the repo rate by 25 basis points today as the government’s vow to stick to fiscal prudence, below target inflation and a recent reduction in the interest rates on small savings instruments have given the central bank additional room to bolster monetary easing in a bid to buoy demand and revive investments in Asia’s third biggest economy. Rate sensitive sectors including auto and banking will be in focus today. On the economic front, things seem to be looking up with manufacturing expanding at the quickest pace in eight months in March while the country is set to see a normal monsoon this year, which may buoy rural demand. The Nikkei India Manufacturing PMI rose for a third month on the trot, climbing from 51.1 in February to 52.4 in March, with a reading above 50 signaling expansion, Markit Economics reported on Monday. The 30-share Sensex on Monday jumped 130.01 points or by 0.51 per cent to end at 25,399.65 ahead of the RBI meet.
Asian markets fell to the lowest level in four weeks as emerging market currencies weakened and oil extended a decline. Investors took a breather after a recent stellar rally as they focus on central bank efforts to continue supporting the global economy. Traders are eying the FOMC minutes to be released on Wednesday which may offer further cues over the timing of the next Fed interest rate hike. China’s Shanghai Composite fell as traders returned to their desks after a holiday, Hang Seng slumped over 1 per cent and Japan’s Nikkei 225 shed almost 2 per cent as a stronger yen eroded the appeal of exporter stocks. Wall Street ended lower on Monday, slipping from the highest levels this year amidst losses in consumer and industrial shares as traders resorted to profit booking after stocks marked a sixth straight weekly gain in seven weeks. Weak macro data weighed on sentiment as the Fed’s Labour Market Conditions Index fell to -2.1 in March, the weakest since June 2009 while US factory orders tumbled 1.7 per cent in February. The Dow Jones Industrial Average fell 0.31 per cent, the Nasdaq Composite declined 0.46 per cent while S&P 500 dipped 0.32 per cent.
