Pre Market Report- Bearish opening on the cards for Dalal Street
17/08/2016
Indian equity benchmarks are likely to open lower on Wednesday tracking a mixed trend in Asia and a negative finish at Wall Street overnight as renewed fears over a near-term US Federal Reserve interest rate hike curbs risk taking appetite. A top Fed official on Tuesday raised the likelihood of a hike in borrowing costs as early as September, raising concerns over capital outflows from emerging markets. Losses in the CNX Nifty Index Futures for August delivery which was trading at 8,636.5, down by 0.28 per cent or 24.5 points at 10:26 AM Singapore time, signal that the Sensex may open lower today. Shares of Sun Pharma will be in focus as the company’s promoter firm has pledged one crore shares or 0.42 per cent stake to SBI as security for loan given to Suzlon Energy. Meanwhile, acceleration in inflationary pressures in Asia’s third biggest economy has dimmed hopes of a near-term RBI interest rate cut. With consumer inflation now having already crossed the upper tolerance level of the government’s official inflation target, wholesale inflation climbed to 3.55 per cent in July 2016, which is the highest in nearly two years, from 1.62 per cent in June 2016. The 30-share Sensex on Tuesday fell 87.79 points or by 0.31 per cent to end at 28,064.61 amid concerns that quickening inflation will prevent the RBI from slashing borrowing costs further to help bolster economic growth.
Asian stocks were trading mixed as traders weighed hawkish comments from a leading Fed official but oil’s rebound to USD 46 a barrel offered support. China’s Shanghai Composite fell even as a much-anticipated exchange trading link between Hong Kong and Shenzhen was unveiled. Hang Seng rose while Japan’s Nikkei 225 was trading higher as a weaker yen bolstered the lure for exporter stocks. US stocks retreated from all-time highs on Tuesday as New York Fed President William Dudley saw the case for rate tightening next month while Atlanta Fed chief Dennis Lockhart said that he’s optimistic that growth in the world’s biggest economy is accelerating to withstand atleast one rate hike in 2016. While US factory output rose 0.5 per cent in July, the fastest pace in a year, housing starts jumped 2.1 per cent, the quickest in five months, while consumer inflation was little changed.
17/08/2016
Indian equity benchmarks are likely to open lower on Wednesday tracking a mixed trend in Asia and a negative finish at Wall Street overnight as renewed fears over a near-term US Federal Reserve interest rate hike curbs risk taking appetite. A top Fed official on Tuesday raised the likelihood of a hike in borrowing costs as early as September, raising concerns over capital outflows from emerging markets. Losses in the CNX Nifty Index Futures for August delivery which was trading at 8,636.5, down by 0.28 per cent or 24.5 points at 10:26 AM Singapore time, signal that the Sensex may open lower today. Shares of Sun Pharma will be in focus as the company’s promoter firm has pledged one crore shares or 0.42 per cent stake to SBI as security for loan given to Suzlon Energy. Meanwhile, acceleration in inflationary pressures in Asia’s third biggest economy has dimmed hopes of a near-term RBI interest rate cut. With consumer inflation now having already crossed the upper tolerance level of the government’s official inflation target, wholesale inflation climbed to 3.55 per cent in July 2016, which is the highest in nearly two years, from 1.62 per cent in June 2016. The 30-share Sensex on Tuesday fell 87.79 points or by 0.31 per cent to end at 28,064.61 amid concerns that quickening inflation will prevent the RBI from slashing borrowing costs further to help bolster economic growth.
Asian stocks were trading mixed as traders weighed hawkish comments from a leading Fed official but oil’s rebound to USD 46 a barrel offered support. China’s Shanghai Composite fell even as a much-anticipated exchange trading link between Hong Kong and Shenzhen was unveiled. Hang Seng rose while Japan’s Nikkei 225 was trading higher as a weaker yen bolstered the lure for exporter stocks. US stocks retreated from all-time highs on Tuesday as New York Fed President William Dudley saw the case for rate tightening next month while Atlanta Fed chief Dennis Lockhart said that he’s optimistic that growth in the world’s biggest economy is accelerating to withstand atleast one rate hike in 2016. While US factory output rose 0.5 per cent in July, the fastest pace in a year, housing starts jumped 2.1 per cent, the quickest in five months, while consumer inflation was little changed.
