Pre Session- Sensex set to open lower as Fed June rate hike fears resurface
19/05/2016
Indian equity benchmarks are likely to witness a gap down opening on Thursday amidst uncertainty surrounding US interest rate outlook with the FOMC minutes showing that policymakers discussed the prospect of raising interest rates in June, souring risk taking appetite. Fed minutes signaled that policymakers said a rise in interest rates next month is warranted if the world’s biggest economy continues to make progress. Higher interest rates in the US may lead to capital outflows from emerging markets. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.51 per cent or 40 points at 7,837 at 10:23 AM Singapore time also signal that Dalal Street may open on a bearish note today. Shares of Lupin, ICRA, SpiceJet and GSPL will be in focus today as these companies unveil their March 2016 quarter earnings. All eyes will be on the assembly election results of five states including Assam, Kerala, Tamil Nadu, West Bengal and Puducherry. The 30-share Sensex on Wednesday fell by 69 points or by 0.27 per cent to end at 25704.61 amid a weak global trend as comments from two Fed officials and rising US consumer inflation renewed worries over a US rate hike in the near-term.
Asian stocks were trading mixed as commodity producers declined as a surging dollar weighed on metal and oil prices. The dollar jumped as Fed minutes signaled the possibility of a June rate hike. China’s Shanghai Composite rose, Hang Seng fell and Japan’s Nikkei 225 rallied as a weaker yen bolstered the appeal of exporter stocks. Wall Street ended on a mixed note on Wednesday as traders weighed the relatively hawkish FOMC minutes.
19/05/2016
Indian equity benchmarks are likely to witness a gap down opening on Thursday amidst uncertainty surrounding US interest rate outlook with the FOMC minutes showing that policymakers discussed the prospect of raising interest rates in June, souring risk taking appetite. Fed minutes signaled that policymakers said a rise in interest rates next month is warranted if the world’s biggest economy continues to make progress. Higher interest rates in the US may lead to capital outflows from emerging markets. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.51 per cent or 40 points at 7,837 at 10:23 AM Singapore time also signal that Dalal Street may open on a bearish note today. Shares of Lupin, ICRA, SpiceJet and GSPL will be in focus today as these companies unveil their March 2016 quarter earnings. All eyes will be on the assembly election results of five states including Assam, Kerala, Tamil Nadu, West Bengal and Puducherry. The 30-share Sensex on Wednesday fell by 69 points or by 0.27 per cent to end at 25704.61 amid a weak global trend as comments from two Fed officials and rising US consumer inflation renewed worries over a US rate hike in the near-term.
Asian stocks were trading mixed as commodity producers declined as a surging dollar weighed on metal and oil prices. The dollar jumped as Fed minutes signaled the possibility of a June rate hike. China’s Shanghai Composite rose, Hang Seng fell and Japan’s Nikkei 225 rallied as a weaker yen bolstered the appeal of exporter stocks. Wall Street ended on a mixed note on Wednesday as traders weighed the relatively hawkish FOMC minutes.
