Pre Market Report- Gap up opening on the cards for Dalal Street
10/08/2016
Indian equity benchmarks are set to witness a positive opening on Wednesday as continued optimism over Asia’s third biggest economy amid the GST bill passage, robust monsoon and an accommodative monetary policy stance from the RBI bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for August delivery which climbed by 0.17 per cent or 15 points at 8,722, at 10:39 AM Singapore time, signal that Dalal Street may open higher today. While Raghuram Rajan, as expected, in his last policy meet, on Tuesday, maintained status quo on interest rates, keeping the repo rate unchanged at 6.5 per cent and the CRR at 4 per cent, he signaled that the RBI’s monetary policy stance remains “accommodative”, with analysts expecting his successor, who is yet to be named, to cut interest rates by atleast 25 bps before the end of 2016 if a good monsoon brings down inflation by curbing the surge in food prices. Consumer inflation which was at 5.77 per cent in June 2016 has quickened for three straight months, and stands very close to the government’s newly notified upper tolerance limit of 6 per cent. The central bank also retained its GDP growth projection at 7.6 per cent for FY 17, issuing a positive outlook on the economy saying that a strong monsoon will aid economic recovery. Shares of Corporation Bank, J&K Bank, M&M and Punjab & Sind Bank will be in focus as they reveal their April-June 2016 quarter earnings. Snapping a three-day rally, the 30-share Sensex on Tuesday retreated by 97.41 points or by 0.35 per cent to end at 28,085.16 after the RBI refrained from cutting interest rates.
Most Asian stocks were trading lower today as oil fell on renewed glut worries after US stockpiles increased last week and concerns remained over global economic growth. Shanghai Composite was trading tad lower, Hang Seng rose and Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street eked out slight gains on Tuesday, pushing the Nasdaq Composite to a record high with traders awaiting the next batch of US economic data to gauge the progress of recovery.
10/08/2016
Indian equity benchmarks are set to witness a positive opening on Wednesday as continued optimism over Asia’s third biggest economy amid the GST bill passage, robust monsoon and an accommodative monetary policy stance from the RBI bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for August delivery which climbed by 0.17 per cent or 15 points at 8,722, at 10:39 AM Singapore time, signal that Dalal Street may open higher today. While Raghuram Rajan, as expected, in his last policy meet, on Tuesday, maintained status quo on interest rates, keeping the repo rate unchanged at 6.5 per cent and the CRR at 4 per cent, he signaled that the RBI’s monetary policy stance remains “accommodative”, with analysts expecting his successor, who is yet to be named, to cut interest rates by atleast 25 bps before the end of 2016 if a good monsoon brings down inflation by curbing the surge in food prices. Consumer inflation which was at 5.77 per cent in June 2016 has quickened for three straight months, and stands very close to the government’s newly notified upper tolerance limit of 6 per cent. The central bank also retained its GDP growth projection at 7.6 per cent for FY 17, issuing a positive outlook on the economy saying that a strong monsoon will aid economic recovery. Shares of Corporation Bank, J&K Bank, M&M and Punjab & Sind Bank will be in focus as they reveal their April-June 2016 quarter earnings. Snapping a three-day rally, the 30-share Sensex on Tuesday retreated by 97.41 points or by 0.35 per cent to end at 28,085.16 after the RBI refrained from cutting interest rates.
Most Asian stocks were trading lower today as oil fell on renewed glut worries after US stockpiles increased last week and concerns remained over global economic growth. Shanghai Composite was trading tad lower, Hang Seng rose and Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street eked out slight gains on Tuesday, pushing the Nasdaq Composite to a record high with traders awaiting the next batch of US economic data to gauge the progress of recovery.
