Pre Session-Gap up opening seen for Sensex on upbeat Q4 GDP data
01/06/2016
Indian equity benchmarks are likely to witness a bullish opening on Wednesday as investors cheer the robust fourth quarter GDP data which showed that Asia’s third biggest economy accelerated last quarter driven by strengthening consumption, bolstering risk taking appetite. The country’s economy grew by 7.9 per cent in the March 2016 quarter, compared to 7.2 per cent in Q3 FY 2015-16. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.20 per cent or 16.5 points at 8,205 at 10:37 AM Singapore time also signal that Dalal Street may open higher today. The focus today will be on Indian manufacturing PMI which may offer further cues over the health of the world’s fastest growing economy. In April, the country’s manufacturing index fell to 50.5 in April from eight-month high of 52.4 in March, but remained above the neutral 50-mark. Snapping a five-day winning streak, the 30-share Sensex on Tuesday declined 57.64 points or by 0.22 per cent to end at 26,667.96 as investors booked profits while uncertainty over US rate outlook also weighed on sentiment.
Asian stocks were trading mixed as oil extended a slump while a continued rout in Chinese manufacturing signaled worries over the health of the world’s second biggest economy, souring the lure for risky assets. The Caixin General Manufacturing PMI fell to 49.2 in May from 49.4 in April. China’s Shanghai Composite was trading flat, with a positive bias, Hang Seng logged modest gains while Japan’s Nikkei 225 fell as a stronger yen eroded the lure for exporter stocks. The yen strengthened amidst Brexit worries while Japanese Prime Minister was due to announce whether he would postpone a planned sales tax hike. Most US stocks fell on Tuesday with upbeat consumer spending data bolstering the case for the US Federal Reserve to raise interest rates this month. US household spending grew the most in nearly seven years, up by 1 per cent in April after being little changed in March.
01/06/2016
Indian equity benchmarks are likely to witness a bullish opening on Wednesday as investors cheer the robust fourth quarter GDP data which showed that Asia’s third biggest economy accelerated last quarter driven by strengthening consumption, bolstering risk taking appetite. The country’s economy grew by 7.9 per cent in the March 2016 quarter, compared to 7.2 per cent in Q3 FY 2015-16. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.20 per cent or 16.5 points at 8,205 at 10:37 AM Singapore time also signal that Dalal Street may open higher today. The focus today will be on Indian manufacturing PMI which may offer further cues over the health of the world’s fastest growing economy. In April, the country’s manufacturing index fell to 50.5 in April from eight-month high of 52.4 in March, but remained above the neutral 50-mark. Snapping a five-day winning streak, the 30-share Sensex on Tuesday declined 57.64 points or by 0.22 per cent to end at 26,667.96 as investors booked profits while uncertainty over US rate outlook also weighed on sentiment.
Asian stocks were trading mixed as oil extended a slump while a continued rout in Chinese manufacturing signaled worries over the health of the world’s second biggest economy, souring the lure for risky assets. The Caixin General Manufacturing PMI fell to 49.2 in May from 49.4 in April. China’s Shanghai Composite was trading flat, with a positive bias, Hang Seng logged modest gains while Japan’s Nikkei 225 fell as a stronger yen eroded the lure for exporter stocks. The yen strengthened amidst Brexit worries while Japanese Prime Minister was due to announce whether he would postpone a planned sales tax hike. Most US stocks fell on Tuesday with upbeat consumer spending data bolstering the case for the US Federal Reserve to raise interest rates this month. US household spending grew the most in nearly seven years, up by 1 per cent in April after being little changed in March.
