Pre Session- Bulls to remain in control at Dalal Street; Infosys Q1 data eyed
15/07/2016
Indian equity benchmarks are poised to witness a gap up opening on Friday tracking a bullish trend across markets in Asia and a record finish at Wall Street overnight as continued prospects of fresh stimulus from central banks to boost an economic recovery bolstered risk taking appetite. Better-than-expected Chinese Q2 GDP data also eased concerns over the health of the world’s second biggest economy. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.42 per cent or by 36.5 points to 8,617 at 10:38 AM Singapore time, signal that Dalal Street may open higher today. Shares of TCS may witness some buying momentum after the country’s top IT software services exporter in after- market hours on Thursday reported Q1 earnings that beat street estimates. While the company’s net profit fell 0.36 per cent sequentially to Rs 6,318 crore in Q1 FY 2016-17, revenue rose 3 per cent to Rs 29,305 crore. Shares of fellow IT player Infosys will also be in focus as it unveils its report card for the April-June 2016 quarter. Analysts are expecting a 4.2 per cent sequential drop in the company’s net profit at Rs 3,447 crore in Q1 FY 2016-17. Optimism over the passage of the all-important GST bill in the upcoming Monsoon Session of the Parliament and strong progress of the monsoon will continue to support buying sentiment. However, acceleration in inflationary pressures has limited room for an interest rate cut in August. Wholesale inflation rose to 1.62 per cent in June 2016 from 0.79 per cent in May 2016 on acceleration in food prices, government data showed on Thursday. Marking a fourth straight day of gains on Thursday, the 30-share BSE SENSEX ended at 27,942.11, up by 126.93 points or by 0.46 per cent and the NSE Nifty closed at 8,565, up by 45.5 points or by 0.53 per cent as stocks from Asia to Europe rallied on continued hopes of a global stimulus boost to counter the effects of heightened uncertainty in the aftermath of the Brexit shock.
Asian stocks extended a rally with the Shanghai Composite logging modest gains and Hang Seng trading higher after China’s economic growth stabilized in the second quarter while consumer spending and lending picked up in June, signaling an improved outlook for the country’s economy. China’s economy grew 6.7 per cent, year on year, in the second quarter of 2016, beating analysts’ estimates of 6.6 per cent growth, and in line with the government’s 6.5 per cent forecast for the full year. A weaker yen amid prospects of further stimulus pushed up Japan’s Nikkei 225 by over 1 per cent. US stocks extended all-time highs on Thursday, with benchmark S&P 500 notching up its longest winning streak in four months as speculation of further global stimulus and optimism over bank earnings after a robust Q2 report card from JP Morgan bolstered sentiment. While the Bank of England held interest rates at record low, it signaled a stimulus boost in August. Meanwhile, US jobless claims were unchanged at 254,000 last week.
15/07/2016
Indian equity benchmarks are poised to witness a gap up opening on Friday tracking a bullish trend across markets in Asia and a record finish at Wall Street overnight as continued prospects of fresh stimulus from central banks to boost an economic recovery bolstered risk taking appetite. Better-than-expected Chinese Q2 GDP data also eased concerns over the health of the world’s second biggest economy. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.42 per cent or by 36.5 points to 8,617 at 10:38 AM Singapore time, signal that Dalal Street may open higher today. Shares of TCS may witness some buying momentum after the country’s top IT software services exporter in after- market hours on Thursday reported Q1 earnings that beat street estimates. While the company’s net profit fell 0.36 per cent sequentially to Rs 6,318 crore in Q1 FY 2016-17, revenue rose 3 per cent to Rs 29,305 crore. Shares of fellow IT player Infosys will also be in focus as it unveils its report card for the April-June 2016 quarter. Analysts are expecting a 4.2 per cent sequential drop in the company’s net profit at Rs 3,447 crore in Q1 FY 2016-17. Optimism over the passage of the all-important GST bill in the upcoming Monsoon Session of the Parliament and strong progress of the monsoon will continue to support buying sentiment. However, acceleration in inflationary pressures has limited room for an interest rate cut in August. Wholesale inflation rose to 1.62 per cent in June 2016 from 0.79 per cent in May 2016 on acceleration in food prices, government data showed on Thursday. Marking a fourth straight day of gains on Thursday, the 30-share BSE SENSEX ended at 27,942.11, up by 126.93 points or by 0.46 per cent and the NSE Nifty closed at 8,565, up by 45.5 points or by 0.53 per cent as stocks from Asia to Europe rallied on continued hopes of a global stimulus boost to counter the effects of heightened uncertainty in the aftermath of the Brexit shock.
Asian stocks extended a rally with the Shanghai Composite logging modest gains and Hang Seng trading higher after China’s economic growth stabilized in the second quarter while consumer spending and lending picked up in June, signaling an improved outlook for the country’s economy. China’s economy grew 6.7 per cent, year on year, in the second quarter of 2016, beating analysts’ estimates of 6.6 per cent growth, and in line with the government’s 6.5 per cent forecast for the full year. A weaker yen amid prospects of further stimulus pushed up Japan’s Nikkei 225 by over 1 per cent. US stocks extended all-time highs on Thursday, with benchmark S&P 500 notching up its longest winning streak in four months as speculation of further global stimulus and optimism over bank earnings after a robust Q2 report card from JP Morgan bolstered sentiment. While the Bank of England held interest rates at record low, it signaled a stimulus boost in August. Meanwhile, US jobless claims were unchanged at 254,000 last week.
