Pre Session- Bulls may continue to rule the roost at D-Street amid economic optimism
13/07/2016
Indian equity benchmarks may witness a gap up opening on Wednesday tracking a rally in Asian equities and a bullish finish at Wall Street overnight as the increased prospect of global central bank stimulus improved the outlook for the world economy, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.15 per cent or by 13 points to 8,537 at 10:39 AM Singapore time, signal that Dalal Street may open higher today. Investors are likely to give thumbs up to May IIP data which signaled a pickup in Asia’s third biggest economy. India’s industrial output expanded 1.2 per cent, year on year, in May 2016, compared to a downwardly revised annual contraction of 1.34 per cent in April 2016. However, consumer inflation accelerated to the highest level in 22 months at 5.77 per cent in June 2016 from 5.76 per cent in May 2016, on a rise in food costs, leaving little room for a near-term interest rate cut. Optimism over the passage of the crucial GST bill in the upcoming monsoon session of Parliament and hopes of a recovery in corporate earnings may continue to support local bourses. Marking a second straight rally, the 30-share Sensex on Tuesday jumped 181.45 points or by 0.66 per cent to end at 27,808.14 amid hopes that the RBI’s next governor may ease monetary policy while a rally in global stocks also brought cheer.
Asian stocks extended an advance amid continued bets that increased central bank stimulus may spur a recovery in the global economy. Markets are hopeful of a rate cut from the Bank of England on Thursday while Japan is set to boost fiscal spending after Prime Minister Shinzo Abe’s party won the weekend’s elections. China’s Shanghai Composite and Hang Seng advanced while Japan’s Nikkei 225 jumped 1 per cent as a weaker yen bolstered the lure for exporter stocks. US stocks climbed for a third straight day on Monday, sending the Dow and S&P 500 to a fresh record amid a rally in crude, speculation of global stimulus and optimism over corporate health following Alcoa’s quarterly earnings report card.
13/07/2016
Indian equity benchmarks may witness a gap up opening on Wednesday tracking a rally in Asian equities and a bullish finish at Wall Street overnight as the increased prospect of global central bank stimulus improved the outlook for the world economy, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.15 per cent or by 13 points to 8,537 at 10:39 AM Singapore time, signal that Dalal Street may open higher today. Investors are likely to give thumbs up to May IIP data which signaled a pickup in Asia’s third biggest economy. India’s industrial output expanded 1.2 per cent, year on year, in May 2016, compared to a downwardly revised annual contraction of 1.34 per cent in April 2016. However, consumer inflation accelerated to the highest level in 22 months at 5.77 per cent in June 2016 from 5.76 per cent in May 2016, on a rise in food costs, leaving little room for a near-term interest rate cut. Optimism over the passage of the crucial GST bill in the upcoming monsoon session of Parliament and hopes of a recovery in corporate earnings may continue to support local bourses. Marking a second straight rally, the 30-share Sensex on Tuesday jumped 181.45 points or by 0.66 per cent to end at 27,808.14 amid hopes that the RBI’s next governor may ease monetary policy while a rally in global stocks also brought cheer.
Asian stocks extended an advance amid continued bets that increased central bank stimulus may spur a recovery in the global economy. Markets are hopeful of a rate cut from the Bank of England on Thursday while Japan is set to boost fiscal spending after Prime Minister Shinzo Abe’s party won the weekend’s elections. China’s Shanghai Composite and Hang Seng advanced while Japan’s Nikkei 225 jumped 1 per cent as a weaker yen bolstered the lure for exporter stocks. US stocks climbed for a third straight day on Monday, sending the Dow and S&P 500 to a fresh record amid a rally in crude, speculation of global stimulus and optimism over corporate health following Alcoa’s quarterly earnings report card.
