Pre Session-Gap up opening seen for D-Street; IIP, inflation data eyed
12/07/2016
Indian equity benchmarks are likely to witness a positive opening on Tuesday amid a bullish trend across Asia as investors bet on policymakers across the globe to take measures to help tackle any fallout from Britain’s decision to leave the European Union, with the Bank of England tipped to cut interest rates this week, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.37 per cent or by 31.5 points to 8,519.5 at 10:35 AM Singapore time, signal that Dalal Street may open higher today. The focus today will be on the June inflation data and the May IIP numbers which will offer further cues over the health of Asia’s third biggest economy. India’s industrial output probably eked out a gain of 0.3 per cent, year on year in May 2016 after an annual contraction of 0.8 per cent in April 2016. Further, the country’s consumer inflation may have eased slightly to 5.6 per cent in June 2016 from May’s 5.76 per cent surge, leaving a bit more leeway for the RBI to cut interest rates, going forward. The next big trigger for markets is Q1 corporate earnings with IT major Infosys and TCS set to unveil their April-June 2016 financial results this week, while the forthcoming monsoon session of the Parliament beginning on July 18 is also being keenly eyed. The 30-share Sensex on Monday soared by 500 points or 1.84 per cent, marking the biggest one-day gain since late May, jumping to the highest level in 11 months to 27,626.69 amidst a global rally spurred by stronger than expected US jobs data, and a landslide win for Japan’s ruling coalition in weekend’s elections that bolstered hopes of fresh fiscal stimulus, and signaled an improved outlook for the world economy.
Asian stocks rallied for a second straight day tracking a record finish at Wall Street overnight amid easing worries over the outlook for the global economy. China’s Shanghai Composite and Hang Seng logged handsome gains while Japan’s Nikkei 225 soared by over 2.6 per cent as a plunging yen bolstered the appeal of exporter stocks as Prime Minister Shinzo Abe intended to unleash a fresh stimulus package. US equities ended higher on Monday with benchmark S&P 500 hitting an all-time high amid optimism that the US economy is strong enough to lift global growth while the odds of a near-term Fed rate hike remained slim despite Friday’s stellar June jobs numbers.
12/07/2016
Indian equity benchmarks are likely to witness a positive opening on Tuesday amid a bullish trend across Asia as investors bet on policymakers across the globe to take measures to help tackle any fallout from Britain’s decision to leave the European Union, with the Bank of England tipped to cut interest rates this week, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.37 per cent or by 31.5 points to 8,519.5 at 10:35 AM Singapore time, signal that Dalal Street may open higher today. The focus today will be on the June inflation data and the May IIP numbers which will offer further cues over the health of Asia’s third biggest economy. India’s industrial output probably eked out a gain of 0.3 per cent, year on year in May 2016 after an annual contraction of 0.8 per cent in April 2016. Further, the country’s consumer inflation may have eased slightly to 5.6 per cent in June 2016 from May’s 5.76 per cent surge, leaving a bit more leeway for the RBI to cut interest rates, going forward. The next big trigger for markets is Q1 corporate earnings with IT major Infosys and TCS set to unveil their April-June 2016 financial results this week, while the forthcoming monsoon session of the Parliament beginning on July 18 is also being keenly eyed. The 30-share Sensex on Monday soared by 500 points or 1.84 per cent, marking the biggest one-day gain since late May, jumping to the highest level in 11 months to 27,626.69 amidst a global rally spurred by stronger than expected US jobs data, and a landslide win for Japan’s ruling coalition in weekend’s elections that bolstered hopes of fresh fiscal stimulus, and signaled an improved outlook for the world economy.
Asian stocks rallied for a second straight day tracking a record finish at Wall Street overnight amid easing worries over the outlook for the global economy. China’s Shanghai Composite and Hang Seng logged handsome gains while Japan’s Nikkei 225 soared by over 2.6 per cent as a plunging yen bolstered the appeal of exporter stocks as Prime Minister Shinzo Abe intended to unleash a fresh stimulus package. US equities ended higher on Monday with benchmark S&P 500 hitting an all-time high amid optimism that the US economy is strong enough to lift global growth while the odds of a near-term Fed rate hike remained slim despite Friday’s stellar June jobs numbers.
