Pre Market Report- Sensex to open little changed amid renewed global weakness
22/07/2016
Indian equity benchmarks are likely to open on a flattish note on Friday as traders resort to a cautious approach amid a sell-off in stock markets across Asia and a bearish finish at Wall Street overnight as optimism over central bank stimulus in Japan eased while disappointing US corporate earnings weighed on sentiment. The CNX Nifty Index Futures for July delivery were trading at 8,525, up by 0.02 per cent or by 2 points at 10:29 AM Singapore time, signaling that Dalal Street may see little movement at opening bell today. Shares of Axis Bank, Federal Bank, L&T Finance Holdings, M&M Finance and Vijaya Bank will be in focus today as they report their April-June 2016 quarter earnings. Traders will keep a close watch on bank earnings with rising bad loans and deteriorating asset quality plaguing the country’s lenders. Earnings report cards from private sector banks Kotak Mahindra Bank and HDFC Bank on Thursday triggered fears over a rise in bad loans for Indian private sector lenders. Caution over the passage of the GST bill in the ongoing monsoon session of the Parliament may also weigh on sentiment at Dalal Street. Snapping a two-day rally, the 30-share Sensex on Thursday fell 205.37 points or by 0.74 per cent to end at 27,710.52 as banks declined amid disappointing earnings numbers.
Dwindling optimism over global stimulus hit Asian stocks hard on Friday as Bank of Japan chief Haruhiko Kuroda dashed hopes for so-called helicopter money, while ECB President Mario Draghi said that the central bank won’t add stimulus for now even as he warned of economic risks, dimming risk taking appetite. China’s Shanghai Composite and Hang Seng fell while Japan’s Nikkei 225 succumbed to significant losses as a surging yen curbed the lure for exporter stocks. US stocks ended lower on Friday on reduced optimism over global monetary easing and below-than-expected earnings report cards from Intel and American Express. However, the losses at Wall Street were curbed by strong US economic data as existing home sales rose to over a nine-year high in June, jobless claims fell to a three-month low last week and a leading US economic index climbed 0.3 per cent in June after falling in May.
22/07/2016
Dwindling optimism over global stimulus hit Asian stocks hard on Friday as Bank of Japan chief Haruhiko Kuroda dashed hopes for so-called helicopter money, while ECB President Mario Draghi said that the central bank won’t add stimulus for now even as he warned of economic risks, dimming risk taking appetite. China’s Shanghai Composite and Hang Seng fell while Japan’s Nikkei 225 succumbed to significant losses as a surging yen curbed the lure for exporter stocks. US stocks ended lower on Friday on reduced optimism over global monetary easing and below-than-expected earnings report cards from Intel and American Express. However, the losses at Wall Street were curbed by strong US economic data as existing home sales rose to over a nine-year high in June, jobless claims fell to a three-month low last week and a leading US economic index climbed 0.3 per cent in June after falling in May.
