Pre Session-Bulls may continue to rule the roost at D-Street
08/06/2016
Indian equity benchmarks are poised to witness a gap up opening on Wednesday and extend a rally as the Reserve Bank of India’s (RBI) continued accommodative monetary policy stance bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.48 per cent or 39.5 points to 8,274 at 10:34 AM Singapore time also signal that Dalal Street may open higher today. While the RBI left its key rates unchanged on Tuesday, it signaled that economic data permitting, a further reduction in policy rates could happen, bolstering the outlook for Asia’s third biggest economy. At the same time, the central bank saw risks to inflation as titled towards the upside, while retaining its economic growth forecast for FY 2016-17 at 7.6 per cent. The focus of investors now turns to Friday’s industrial output data for April 2016 which may offer further cues over the health of the country’s economy. In March 2016, India’s industrial output climbed a miniscule 0.1 per cent, year on year. On Tuesday, the 30-share Sensex regained the 27K mark, rallying by 232.22 points or by 0.87 per cent to close at the highest level in seven months at 27,009.67.
Asian stocks languished in the red as traders stayed jittery ahead of Chinese trade data which may offer further cues over the health of the world’s second biggest economy while weighing a reduction in the World Bank’s global economic growth forecast for 2016 to 2.4 per cent from 2.9 per cent, souring risk taking appetite. All three of the Shanghai Composite, Hang Seng and Japan’s Nikkei 225 were trading in the red. Meanwhile, Japan’s economy grew by an annualized 1.9 per cent in the March 2016 quarter, compared to a previously reported 1.7 per cent expansion. Wall Street ended mostly higher on Tuesday with S&P 500 rising to a 10-month high amidst a rally in oil prices and a weaker dollar on speculation that the US Federal Reserve may not be in a hurry to raise interest rates amidst sluggish growth in the world’s biggest economy.
08/06/2016
Indian equity benchmarks are poised to witness a gap up opening on Wednesday and extend a rally as the Reserve Bank of India’s (RBI) continued accommodative monetary policy stance bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.48 per cent or 39.5 points to 8,274 at 10:34 AM Singapore time also signal that Dalal Street may open higher today. While the RBI left its key rates unchanged on Tuesday, it signaled that economic data permitting, a further reduction in policy rates could happen, bolstering the outlook for Asia’s third biggest economy. At the same time, the central bank saw risks to inflation as titled towards the upside, while retaining its economic growth forecast for FY 2016-17 at 7.6 per cent. The focus of investors now turns to Friday’s industrial output data for April 2016 which may offer further cues over the health of the country’s economy. In March 2016, India’s industrial output climbed a miniscule 0.1 per cent, year on year. On Tuesday, the 30-share Sensex regained the 27K mark, rallying by 232.22 points or by 0.87 per cent to close at the highest level in seven months at 27,009.67.
Asian stocks languished in the red as traders stayed jittery ahead of Chinese trade data which may offer further cues over the health of the world’s second biggest economy while weighing a reduction in the World Bank’s global economic growth forecast for 2016 to 2.4 per cent from 2.9 per cent, souring risk taking appetite. All three of the Shanghai Composite, Hang Seng and Japan’s Nikkei 225 were trading in the red. Meanwhile, Japan’s economy grew by an annualized 1.9 per cent in the March 2016 quarter, compared to a previously reported 1.7 per cent expansion. Wall Street ended mostly higher on Tuesday with S&P 500 rising to a 10-month high amidst a rally in oil prices and a weaker dollar on speculation that the US Federal Reserve may not be in a hurry to raise interest rates amidst sluggish growth in the world’s biggest economy.
