Pre Session- Cautious opening on the cards for Dalal Street
07/04/2016
Indian equity benchmarks are likely to open on a soft note on Thursday as traders stick to a cautious approach ahead of the March quarter earnings numbers in the coming sessions, which may offer clues over corporate health in Asia’s third biggest economy. The CNX Nifty Index futures for April delivery were trading marginally higher by 0.03 per cent or 2.5 points at 7,636.5 at 10:15 am Singapore time, signaling that the Sensex may witness a flattish opening today. A rise in bad loans, falling oil prices and weak global demand could mean yet another dismal quarter for India Inc., analysts have warned. With the government sticking to its fiscal deficit targets and inflation remaining under control, traders were expecting the RBI to act more aggressively and cut its repo rate by a bigger margin than the 25 bps reduction announced, weighing on sentiment. However, an upbeat prognosis on the country’s economy delivered by the March Services PMI data may support local bourses. The Nikkei India Services Business Activity Index climbed to 54.3 in March from 51.4 in February, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday. Further, an indication by the Fed that it is not in a hurry to raise interest rates may bolster the appetite for risky assets. Bouncing back handsomely from a near-two month low, the 30-share Sensex on Wednesday ended up 17.04 points or by 0.07 per cent at 24,900.63 driven by value buying in beaten down stocks.
Most Asian markets advanced after the minutes from the US Federal Reserve’s latest meeting, released on Wednesday, reaffirmed policymakers’ dovish stance over raising interest rates in the world’s biggest economy amidst the continued risks presented by the global outlook, greatly diminishing the odds for tightening in April. A rebound in oil prices after a surprise drop in US crude inventories from an 86-year high also cheered traders. While China’s Shanghai Composite was trading tad lower, Hang Seng advanced and Japan’s Nikkei 225 rose tracking an overnight rally at Wall Street driven by a weaker dollar, rebound in oil prices and speculation of lower US interest rates for a prolonged period. The Dow Jones Industrial Average advanced 0.64 per cent; the Nasdaq Composite jumped 1.59 per cent while S&P 500 rose 1.05 per cent, on Wednesday, April 6, 2016
07/04/2016
Indian equity benchmarks are likely to open on a soft note on Thursday as traders stick to a cautious approach ahead of the March quarter earnings numbers in the coming sessions, which may offer clues over corporate health in Asia’s third biggest economy. The CNX Nifty Index futures for April delivery were trading marginally higher by 0.03 per cent or 2.5 points at 7,636.5 at 10:15 am Singapore time, signaling that the Sensex may witness a flattish opening today. A rise in bad loans, falling oil prices and weak global demand could mean yet another dismal quarter for India Inc., analysts have warned. With the government sticking to its fiscal deficit targets and inflation remaining under control, traders were expecting the RBI to act more aggressively and cut its repo rate by a bigger margin than the 25 bps reduction announced, weighing on sentiment. However, an upbeat prognosis on the country’s economy delivered by the March Services PMI data may support local bourses. The Nikkei India Services Business Activity Index climbed to 54.3 in March from 51.4 in February, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday. Further, an indication by the Fed that it is not in a hurry to raise interest rates may bolster the appetite for risky assets. Bouncing back handsomely from a near-two month low, the 30-share Sensex on Wednesday ended up 17.04 points or by 0.07 per cent at 24,900.63 driven by value buying in beaten down stocks.
Most Asian markets advanced after the minutes from the US Federal Reserve’s latest meeting, released on Wednesday, reaffirmed policymakers’ dovish stance over raising interest rates in the world’s biggest economy amidst the continued risks presented by the global outlook, greatly diminishing the odds for tightening in April. A rebound in oil prices after a surprise drop in US crude inventories from an 86-year high also cheered traders. While China’s Shanghai Composite was trading tad lower, Hang Seng advanced and Japan’s Nikkei 225 rose tracking an overnight rally at Wall Street driven by a weaker dollar, rebound in oil prices and speculation of lower US interest rates for a prolonged period. The Dow Jones Industrial Average advanced 0.64 per cent; the Nasdaq Composite jumped 1.59 per cent while S&P 500 rose 1.05 per cent, on Wednesday, April 6, 2016
