Pre Session-Bulls set to return at Dalal Street; Services PMI eyed
06/04/2016
Indian equity benchmarks are likely to bounce back on Wednesday from the biggest slump in nearly two months as Asian equities logged slim gains tracking a rebound in oil prices, while Tuesday’s heavy sell-off may offer a good bargain buying opportunity, for traders, in stocks, at existing levels. Strength in the CNX Nifty Index futures for April delivery which advanced by 0.27 per cent or 20.5 points at 7,629 at 10:33 am Singapore time, signals that Dalal Street may witness a gap up opening today. The focus today will be on the March Services PMI which will offer fresh cues over the health of Asia’s third biggest economy. In February, the gauge measuring Indian services activity cooled to 51.4 from 54.3 in January, with a reading above 50 signaling expansion. While the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 bps was very much on expected lines, measures to tackle a prolonged funding squeeze are likely to enhance liquidly and lead to better transmission of rate cuts going forward, aiding the country’s economic growth. The 30-share Sensex on Tuesday plummeted by 516.06 points or by 2.03 per cent to end at 24,883 as a renewed global stock rout and rupee weakness overshadowed a rate cut from the RBI.
Asian stocks scripted a quiet rebound from Tuesday’s one-month low driven by gains in energy producers as oil prices rose. Traders weighed comments from IMF chief Christine Lagarde who warned of greater risks to global economic growth while caution prevailed ahead of the release of the FOMC minutes which may offer some insight over the Fed’s rate hike trajectory. China’s Shanghai Composite logged slim gains amid hopes that fresh policy support from the government including infra investment and tax reforms may help revive growth in the world’s second biggest economy. Hang Seng advanced while Japan’s Nikkei 225 was trading tad higher with a stronger yen capping gains. Wall Street succumbed to a steep sell-off on Tuesday with benchmark S&P 500 falling the most in four weeks as traders were anxious over global growth outlook. Traders cast aside data showing a pickup in US Services growth to a five-month high in March as the ISM Services Index climbed to 54.5 from 53.4 in February. The Dow Jones Industrial Average fell 0.75 per cent; the Nasdaq Composite declined 0.98 per cent while S&P 500 shed 1.01 per cent.
06/04/2016
Indian equity benchmarks are likely to bounce back on Wednesday from the biggest slump in nearly two months as Asian equities logged slim gains tracking a rebound in oil prices, while Tuesday’s heavy sell-off may offer a good bargain buying opportunity, for traders, in stocks, at existing levels. Strength in the CNX Nifty Index futures for April delivery which advanced by 0.27 per cent or 20.5 points at 7,629 at 10:33 am Singapore time, signals that Dalal Street may witness a gap up opening today. The focus today will be on the March Services PMI which will offer fresh cues over the health of Asia’s third biggest economy. In February, the gauge measuring Indian services activity cooled to 51.4 from 54.3 in January, with a reading above 50 signaling expansion. While the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 bps was very much on expected lines, measures to tackle a prolonged funding squeeze are likely to enhance liquidly and lead to better transmission of rate cuts going forward, aiding the country’s economic growth. The 30-share Sensex on Tuesday plummeted by 516.06 points or by 2.03 per cent to end at 24,883 as a renewed global stock rout and rupee weakness overshadowed a rate cut from the RBI.
Asian stocks scripted a quiet rebound from Tuesday’s one-month low driven by gains in energy producers as oil prices rose. Traders weighed comments from IMF chief Christine Lagarde who warned of greater risks to global economic growth while caution prevailed ahead of the release of the FOMC minutes which may offer some insight over the Fed’s rate hike trajectory. China’s Shanghai Composite logged slim gains amid hopes that fresh policy support from the government including infra investment and tax reforms may help revive growth in the world’s second biggest economy. Hang Seng advanced while Japan’s Nikkei 225 was trading tad higher with a stronger yen capping gains. Wall Street succumbed to a steep sell-off on Tuesday with benchmark S&P 500 falling the most in four weeks as traders were anxious over global growth outlook. Traders cast aside data showing a pickup in US Services growth to a five-month high in March as the ISM Services Index climbed to 54.5 from 53.4 in February. The Dow Jones Industrial Average fell 0.75 per cent; the Nasdaq Composite declined 0.98 per cent while S&P 500 shed 1.01 per cent.
