Pre Session- Positive opening seen for Sensex with focus on RBI meet
07/06/2016
Indian equity benchmarks are set to witness a gap up opening on Tuesday tracking a mostly positive trend across stock markets in Asia and a bullish finish at Wall Street overnight after Fed Chair Janet Yellen reiterated her pledge to hike borrowing costs in the world’s biggest economy only gradually, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.48 per cent or 39.5 points at 8,274 at 10:36 AM Singapore time also signal that Dalal Street may open higher today. The focus today will be on the Reserve Bank of India’s (RBI) second bi-monthly policy meet with investors closely eying the central bank’s commentary over the health of Asia’s third biggest economy. However, the odds of an interest rate cut are pretty slim as the apex bank focuses on inflation control, liquidity management and the pending policy transmission after easing policy rates by a cumulative 150 basis points over the past 18 months. Traders will also look for clues, if any, from RBI Governor Raghuram Rajan on whether he is going to get an extension to his term. Banking stocks will be in focus as the RBI unveils its policy verdict. The 30-share Sensex, on Monday suffered the biggest drop in more than two weeks, shedding 65.58 points or 0.24 per cent to 26,777.45 amid caution ahead of RBI meet.
Most Asian stocks rose as Yellen signaled that gradual interest rate tightening remains appropriate even though she stopped short of providing the precise timing for raising interest rates further, potentially putting a June rate hike off the table. China’s Shanghai Composite fell ahead of tomorrow’s foreign trade data, Hang Seng jumped 1 per cent while Japan’s Nikkei 225 climbed as investors weighed Yellen’s speech and as a weaker yen bolstered the lure for exporter stocks. Wall Street rebounded handsomely on Monday with benchmark S&P 500 regaining a seven-month high after Yellen assured that the US economy is still making enough progress to withstand gradual rate hikes despite recent data showing a sharp slowdown in job growth.
07/06/2016
Indian equity benchmarks are set to witness a gap up opening on Tuesday tracking a mostly positive trend across stock markets in Asia and a bullish finish at Wall Street overnight after Fed Chair Janet Yellen reiterated her pledge to hike borrowing costs in the world’s biggest economy only gradually, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery which advanced by 0.48 per cent or 39.5 points at 8,274 at 10:36 AM Singapore time also signal that Dalal Street may open higher today. The focus today will be on the Reserve Bank of India’s (RBI) second bi-monthly policy meet with investors closely eying the central bank’s commentary over the health of Asia’s third biggest economy. However, the odds of an interest rate cut are pretty slim as the apex bank focuses on inflation control, liquidity management and the pending policy transmission after easing policy rates by a cumulative 150 basis points over the past 18 months. Traders will also look for clues, if any, from RBI Governor Raghuram Rajan on whether he is going to get an extension to his term. Banking stocks will be in focus as the RBI unveils its policy verdict. The 30-share Sensex, on Monday suffered the biggest drop in more than two weeks, shedding 65.58 points or 0.24 per cent to 26,777.45 amid caution ahead of RBI meet.
Most Asian stocks rose as Yellen signaled that gradual interest rate tightening remains appropriate even though she stopped short of providing the precise timing for raising interest rates further, potentially putting a June rate hike off the table. China’s Shanghai Composite fell ahead of tomorrow’s foreign trade data, Hang Seng jumped 1 per cent while Japan’s Nikkei 225 climbed as investors weighed Yellen’s speech and as a weaker yen bolstered the lure for exporter stocks. Wall Street rebounded handsomely on Monday with benchmark S&P 500 regaining a seven-month high after Yellen assured that the US economy is still making enough progress to withstand gradual rate hikes despite recent data showing a sharp slowdown in job growth.
