Pre Session-Gap down opening seen for Sensex on lackluster global trend
02/06/2016
Indian equity benchmarks are likely to witness a bearish opening on Thursday tracking weak cues from fellow Asian peers and a listless finish at Wall Street overnight as traders across the globe stayed on the sidelines ahead of the OPEC policy meet and the US jobs report which may offer further clues over the timing of the next Fed interest rate hike, curbing risk taking appetite. Further interest rate tightening in the US may result in capital outflows from emerging markets, weighing on sentiment. Investors are also eying the outcome of the OPEC meeting today, with oil slipping below the USD 49 per barrel mark. Losses in the CNX Nifty Index Futures for June delivery which fell by 0.21 per cent or 17 points at 8,186 at 10:29 AM Singapore time also signal that Dalal Street may open lower today. Back home, optimism over Asia’s third biggest economy amid forecast of above normal monsoon rains, encouraging Q4 earnings numbers and upbeat March quarter GDP data may continue to support market sentiment. While India’s economic growth accelerated to 7.9 per cent in Q4 FY 2015-16, output from the eight core infrastructure sectors grew 8.5 per cent in April and a gauge measuring manufacturing activity in the country rose to 50.7 in May from 50.5 in April, with a reading above 50 signaling expansion. The 30-share Sensex on Wednesday rallied by 45.97 points or by 0.17 per cent to end at 26,713.93 as traders cheered the better-than-expected March quarter GDP data.
Asian stocks were trading on a sluggish note on Thursday as investors continued to weigh the prospects of a Fed rate hike in the summer with robust data suggesting a strong case for near-term monetary tightening. The OPEC meet at Vienna is also in focus but the cartel is unlikely to announce a production cut. China’s Shanghai Composite was trading flat, Hang Seng logged modest gains while Japan’s Nikkei 225 plunged over 2 per cent as a stronger yen eroded the appeal of exporter stocks, as Prime Minister Shinzo Abe decided to delay a planned sales tax hike. US stocks ended little changed on Wednesday as stronger US factory data raised speculation of a rise in borrowing costs as early as next month. A gauge measuring US manufacturing expanded at a faster pace in May, rising to 51.3 from 50.8 in April while the Fed’s Beige Book survey said that the world’s biggest economy continued to expand at a modest pace since mid-April, with the labour market tightening, pushing up jobs and wages, bolstering the case for higher interest rates
02/06/2016
Indian equity benchmarks are likely to witness a bearish opening on Thursday tracking weak cues from fellow Asian peers and a listless finish at Wall Street overnight as traders across the globe stayed on the sidelines ahead of the OPEC policy meet and the US jobs report which may offer further clues over the timing of the next Fed interest rate hike, curbing risk taking appetite. Further interest rate tightening in the US may result in capital outflows from emerging markets, weighing on sentiment. Investors are also eying the outcome of the OPEC meeting today, with oil slipping below the USD 49 per barrel mark. Losses in the CNX Nifty Index Futures for June delivery which fell by 0.21 per cent or 17 points at 8,186 at 10:29 AM Singapore time also signal that Dalal Street may open lower today. Back home, optimism over Asia’s third biggest economy amid forecast of above normal monsoon rains, encouraging Q4 earnings numbers and upbeat March quarter GDP data may continue to support market sentiment. While India’s economic growth accelerated to 7.9 per cent in Q4 FY 2015-16, output from the eight core infrastructure sectors grew 8.5 per cent in April and a gauge measuring manufacturing activity in the country rose to 50.7 in May from 50.5 in April, with a reading above 50 signaling expansion. The 30-share Sensex on Wednesday rallied by 45.97 points or by 0.17 per cent to end at 26,713.93 as traders cheered the better-than-expected March quarter GDP data.
Asian stocks were trading on a sluggish note on Thursday as investors continued to weigh the prospects of a Fed rate hike in the summer with robust data suggesting a strong case for near-term monetary tightening. The OPEC meet at Vienna is also in focus but the cartel is unlikely to announce a production cut. China’s Shanghai Composite was trading flat, Hang Seng logged modest gains while Japan’s Nikkei 225 plunged over 2 per cent as a stronger yen eroded the appeal of exporter stocks, as Prime Minister Shinzo Abe decided to delay a planned sales tax hike. US stocks ended little changed on Wednesday as stronger US factory data raised speculation of a rise in borrowing costs as early as next month. A gauge measuring US manufacturing expanded at a faster pace in May, rising to 51.3 from 50.8 in April while the Fed’s Beige Book survey said that the world’s biggest economy continued to expand at a modest pace since mid-April, with the labour market tightening, pushing up jobs and wages, bolstering the case for higher interest rates
