Pre Market Report- Gap up opening likely for Dalal Street
07/07/2016
Indian equity benchmarks are set to witness a positive opening on Thursday as traders return to their desks after Wednesday’s holiday. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.54 per cent or by 45 points to 8,341 at 10:38 AM Singapore time, signal that Dalal Street may open higher today. Continued optimism over Asia’s third biggest economy amid strong progress of the southwest monsoon with the country receiving above normal rainfall, coupled with hopes that the Modi government will be able to finally get over the long pending GST bill hurdle in the upcoming monsoon session of the Parliament, may boost sentiment at domestic bourses. According to IMD, monsoon rainfall has shown a rise of 1 per cent for the period between June 1 and July 6. A favourable monsoon is seen pushing up rural demand and ease food inflation. Snapping a six-session advance, the 30-share Sensex on Tuesday fell by 111.89 points or by 0.41 per cent at 27,166.87 with traders resorting to profit booking after a handsome rally. Meanwhile, Indian services activity eased in June 2016, with the PMI falling to 50.3 from 51 in May, but remained in expansion mode.
Asian stocks were trading mixed as investors weighed the outlook for global economic growth and the timing for higher US interest rates. Caution ruled sentiment ahead of the US June payrolls data set for release on Friday which may dictate the timing of the next US Fed rate hike. Minutes from the Fed’s latest meeting, released on Wednesday, signaled that officials held interest rates unchanged amid uncertainty surrounding the job market outlook. China’s Shanghai Composite fell, Hang Seng rose handsomely and Japan’s Nikkei 225 retreated as a stronger yen curbed the lure for exporter stocks. US stocks rose on Wednesday after data showed that services in the world’s biggest economy expanded at the fastest pace in seven months with the ISM services index rising to 56.5 in June from 52.9 in May.
07/07/2016
Indian equity benchmarks are set to witness a positive opening on Thursday as traders return to their desks after Wednesday’s holiday. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.54 per cent or by 45 points to 8,341 at 10:38 AM Singapore time, signal that Dalal Street may open higher today. Continued optimism over Asia’s third biggest economy amid strong progress of the southwest monsoon with the country receiving above normal rainfall, coupled with hopes that the Modi government will be able to finally get over the long pending GST bill hurdle in the upcoming monsoon session of the Parliament, may boost sentiment at domestic bourses. According to IMD, monsoon rainfall has shown a rise of 1 per cent for the period between June 1 and July 6. A favourable monsoon is seen pushing up rural demand and ease food inflation. Snapping a six-session advance, the 30-share Sensex on Tuesday fell by 111.89 points or by 0.41 per cent at 27,166.87 with traders resorting to profit booking after a handsome rally. Meanwhile, Indian services activity eased in June 2016, with the PMI falling to 50.3 from 51 in May, but remained in expansion mode.
Asian stocks were trading mixed as investors weighed the outlook for global economic growth and the timing for higher US interest rates. Caution ruled sentiment ahead of the US June payrolls data set for release on Friday which may dictate the timing of the next US Fed rate hike. Minutes from the Fed’s latest meeting, released on Wednesday, signaled that officials held interest rates unchanged amid uncertainty surrounding the job market outlook. China’s Shanghai Composite fell, Hang Seng rose handsomely and Japan’s Nikkei 225 retreated as a stronger yen curbed the lure for exporter stocks. US stocks rose on Wednesday after data showed that services in the world’s biggest economy expanded at the fastest pace in seven months with the ISM services index rising to 56.5 in June from 52.9 in May.
