Pre Market Report-Bears may continue to rule the roost at D-Street
02/08/2016
Indian equity benchmarks are likely to witness a negative opening on Tuesday tracking weakness across markets in Asia and concerns over tepid corporate earnings, curbing risk taking appetite. Losses in the CNX Nifty Index Futures for August delivery which fell 0.14 per cent or 12.5 points at 8,675.5, at 10:35 AM Singapore time, signal that Dalal Street may open lower today. Weak report cards from Sensex heavyweights such as ICICI Bank which reported a 25 per cent drop in quarterly profit due to higher provisions and L&T which warned of continued sluggishness in the country’s investment climate has dimmed some optimism over Asia’s third biggest economy. Shares of Indian Bank and Torrent Power will be in focus today amidst the announcement of their April-June 2016 quarter earnings. However, Dalal Street will remain supported by hopes of the passage of the long pending GST bill in the Parliament, paving way for the country’s biggest fiscal reform yet. The Modi government on Monday listed the GST bill for consideration and passage in Rajya Sabha on Wednesday, with the Congress and other political parties likely to support the bill. Acceleration in manufacturing activity also augurs well for the Indian economy as the country’s manufacturing PMI rose to a four-month high of 51.8 in July from 51.7 in June, with a reading above 50 signaling expansion. Marking a second straight decline, the 30-share Sensex on Monday retreated 48.74 points or by 0.17 per cent at 28,003.12 with ICICI Bank plunging over 5 per cent.
Asian stocks were trading on a soft note today as a slump in oil which fell below the USD 40 per barrel mark for the first time since April, hit stocks of energy and commodity companies. China’s Shanghai Composite was little changed amid continued concerns over the country’s economy after a contraction in manufacturing in July. Hang Seng was closed and Japan’s Nikkei 225 fell amid caution ahead of the announcement of a USD 274 billion stimulus package. Most US stocks ended lower on Monday after cooling factory growth raised concerns over a slowdown in the world’s biggest economy. The gauge measuring US manufacturing fell to 52.6 In July from a one-year high of 53.2 in June.
02/08/2016
Indian equity benchmarks are likely to witness a negative opening on Tuesday tracking weakness across markets in Asia and concerns over tepid corporate earnings, curbing risk taking appetite. Losses in the CNX Nifty Index Futures for August delivery which fell 0.14 per cent or 12.5 points at 8,675.5, at 10:35 AM Singapore time, signal that Dalal Street may open lower today. Weak report cards from Sensex heavyweights such as ICICI Bank which reported a 25 per cent drop in quarterly profit due to higher provisions and L&T which warned of continued sluggishness in the country’s investment climate has dimmed some optimism over Asia’s third biggest economy. Shares of Indian Bank and Torrent Power will be in focus today amidst the announcement of their April-June 2016 quarter earnings. However, Dalal Street will remain supported by hopes of the passage of the long pending GST bill in the Parliament, paving way for the country’s biggest fiscal reform yet. The Modi government on Monday listed the GST bill for consideration and passage in Rajya Sabha on Wednesday, with the Congress and other political parties likely to support the bill. Acceleration in manufacturing activity also augurs well for the Indian economy as the country’s manufacturing PMI rose to a four-month high of 51.8 in July from 51.7 in June, with a reading above 50 signaling expansion. Marking a second straight decline, the 30-share Sensex on Monday retreated 48.74 points or by 0.17 per cent at 28,003.12 with ICICI Bank plunging over 5 per cent.
Asian stocks were trading on a soft note today as a slump in oil which fell below the USD 40 per barrel mark for the first time since April, hit stocks of energy and commodity companies. China’s Shanghai Composite was little changed amid continued concerns over the country’s economy after a contraction in manufacturing in July. Hang Seng was closed and Japan’s Nikkei 225 fell amid caution ahead of the announcement of a USD 274 billion stimulus package. Most US stocks ended lower on Monday after cooling factory growth raised concerns over a slowdown in the world’s biggest economy. The gauge measuring US manufacturing fell to 52.6 In July from a one-year high of 53.2 in June.
