Pre Session- Sensex tipped to open higher ahead of Tuesday’s RBI decision
04/04/2016
Indian equity benchmarks are poised to witness a gap up opening on Monday amid optimism among traders ahead of tomorrow’s much anticipated policy decision from the Reserve Bank of India (RBI) which is expected to cut interest rates by 25 basis points as the government’s vow to stick to fiscal prudence and below target inflation offer leeway for further monetary easing by the central bank to help buoy demand and revive investments in Asia’s third biggest economy. Strength in the CNX Nifty Index futures for April delivery which advanced 0.24 per cent or 19 points at 7,764.5 at 10:30 am Singapore time signals that Dalal Street may witness a positive opening today. The centre on Friday said that it had achieved the 3.9 per cent fiscal deficit goal for FY 16, paving the way for a further reduction in interest rates. Investors will also focus on the March Manufacturing PMI set for release today and the Services PMI later this week, which will offer further cues over the health of the Indian economy. Trend of foreign fund flows, quarterly earnings expectations with BHEL set to announce its tentative financial results for the year ended March 31, global market trend and movement of oil prices will also determine the direction of the local bourses this week. Snapping a four week winning streak, the 30-share Sensex last week dipped 67.92 points to close at 25,269.64, while declining 72.22 points or by 0.28 per cent on Friday on profit booking.
On the Asia front, markets in China and Hong Kong were closed for a holiday while Japan’s Nikkei 225 rose on bets that the US Federal Reserve may proceed cautiously with further interest rate hikes despite Friday’s better than expected jobs data. Non-farm payrolls in the US climbed by 215,000 in March, compared to a revised 245,000 gain in February, topping analysts’ estimates for a 205,000 gain while wages picked up, a sign that the labour market recovery in the world’s biggest economy remains on a strong footing in the face of a global slowdown. Wall Street advanced on Friday as strong jobs and manufacturing data infused optimism over the health of the US economy. Manufacturing in the US expanded for the first time in seven months as the ISM’s factory gauge rose to 51.8 in March from 49.5 in February, with a reading above 50 signaling expansion. The Dow Jones Industrial Average advanced 0.61 per cent; the Nasdaq Composite climbed 0.92 per cent while S&P 500 rose 0.63 per cent.
04/04/2016
Indian equity benchmarks are poised to witness a gap up opening on Monday amid optimism among traders ahead of tomorrow’s much anticipated policy decision from the Reserve Bank of India (RBI) which is expected to cut interest rates by 25 basis points as the government’s vow to stick to fiscal prudence and below target inflation offer leeway for further monetary easing by the central bank to help buoy demand and revive investments in Asia’s third biggest economy. Strength in the CNX Nifty Index futures for April delivery which advanced 0.24 per cent or 19 points at 7,764.5 at 10:30 am Singapore time signals that Dalal Street may witness a positive opening today. The centre on Friday said that it had achieved the 3.9 per cent fiscal deficit goal for FY 16, paving the way for a further reduction in interest rates. Investors will also focus on the March Manufacturing PMI set for release today and the Services PMI later this week, which will offer further cues over the health of the Indian economy. Trend of foreign fund flows, quarterly earnings expectations with BHEL set to announce its tentative financial results for the year ended March 31, global market trend and movement of oil prices will also determine the direction of the local bourses this week. Snapping a four week winning streak, the 30-share Sensex last week dipped 67.92 points to close at 25,269.64, while declining 72.22 points or by 0.28 per cent on Friday on profit booking.
On the Asia front, markets in China and Hong Kong were closed for a holiday while Japan’s Nikkei 225 rose on bets that the US Federal Reserve may proceed cautiously with further interest rate hikes despite Friday’s better than expected jobs data. Non-farm payrolls in the US climbed by 215,000 in March, compared to a revised 245,000 gain in February, topping analysts’ estimates for a 205,000 gain while wages picked up, a sign that the labour market recovery in the world’s biggest economy remains on a strong footing in the face of a global slowdown. Wall Street advanced on Friday as strong jobs and manufacturing data infused optimism over the health of the US economy. Manufacturing in the US expanded for the first time in seven months as the ISM’s factory gauge rose to 51.8 in March from 49.5 in February, with a reading above 50 signaling expansion. The Dow Jones Industrial Average advanced 0.61 per cent; the Nasdaq Composite climbed 0.92 per cent while S&P 500 rose 0.63 per cent.
