Pre Market Report- GST clearance to bring cheer to D-Street
04/08/2016
Indian equity benchmarks may witness a bullish opening on Thursday with investor sentiment set to receive a massive boost from the clearance of the long pending GST bill in the Rajya Sabha, paving the way for the country’s biggest reform since 1991. The historic bill was cleared by the upper house of Parliament on Wednesday by a 203-0 vote, with no party opposing the constitutional amendment. The bill which seeks to transform India into a single market will help make Asia’s third biggest economy more efficient by abolishing multiple taxes. Now, 50 per cent of states will have to approve the GST legislation while the Modi government must reach a consensus on the GST rate. Gains in the CNX Nifty Index Futures for August delivery which climbed 0.37 per cent or 32 points at 8,616.5, at 10:34 AM Singapore time, signal that Dalal Street may open higher today. Shares of Siemens and Tata Power Company will be in focus as they reveal their April-June 2016 quarter report cards. A pickup in India’s services activity to a three-month high in July signals an improved outlook for Asia’s third biggest economy, bolstering investor mood. Marking a thirteenth straight month in positive territory, the Nikkei India Services Business Activity Index climbed to 51.9 in July from 50.3 in June, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday. Marking a fourth straight day in the red, the 30-share Sensex on Wednesday fell by 284.2 points or by 1.02 per cent to end at 27,697.51 amid caution due to the GST bill debate and losses in fellow emerging markets on a renewed drop in oil prices to below USD 40 per barrel.
Asian stocks were trading mixed as traders turned cautious ahead of Friday’s US jobs data which may offer some cues over the timing of the next US Fed interest rate hike. China’s Shanghai Composite was trading lower on continued concerns over the world’s second biggest economy, Hang Seng rose and Japan’s Nikkei 225 fell on fears that Japan’s latest monetary and fiscal stimulus measures may not be enough to revive price growth and tackle the long-standing problem of deflation. Wall Street rallied on Wednesday, helping benchmark S&P 500 snap a two-day drop as oil notched up its biggest gain in three weeks and financial stocks rose on strong corporate earnings. While the US private sector added 179,000 workers in July, up from June’s 176,000, the US services index cooled from a seven-month high of 56.5 in June to 55.5 in July, but remained above the neutral 50-mark.
04/08/2016
Indian equity benchmarks may witness a bullish opening on Thursday with investor sentiment set to receive a massive boost from the clearance of the long pending GST bill in the Rajya Sabha, paving the way for the country’s biggest reform since 1991. The historic bill was cleared by the upper house of Parliament on Wednesday by a 203-0 vote, with no party opposing the constitutional amendment. The bill which seeks to transform India into a single market will help make Asia’s third biggest economy more efficient by abolishing multiple taxes. Now, 50 per cent of states will have to approve the GST legislation while the Modi government must reach a consensus on the GST rate. Gains in the CNX Nifty Index Futures for August delivery which climbed 0.37 per cent or 32 points at 8,616.5, at 10:34 AM Singapore time, signal that Dalal Street may open higher today. Shares of Siemens and Tata Power Company will be in focus as they reveal their April-June 2016 quarter report cards. A pickup in India’s services activity to a three-month high in July signals an improved outlook for Asia’s third biggest economy, bolstering investor mood. Marking a thirteenth straight month in positive territory, the Nikkei India Services Business Activity Index climbed to 51.9 in July from 50.3 in June, with a reading above 50 signaling expansion, Markit Economics reported on Wednesday. Marking a fourth straight day in the red, the 30-share Sensex on Wednesday fell by 284.2 points or by 1.02 per cent to end at 27,697.51 amid caution due to the GST bill debate and losses in fellow emerging markets on a renewed drop in oil prices to below USD 40 per barrel.
Asian stocks were trading mixed as traders turned cautious ahead of Friday’s US jobs data which may offer some cues over the timing of the next US Fed interest rate hike. China’s Shanghai Composite was trading lower on continued concerns over the world’s second biggest economy, Hang Seng rose and Japan’s Nikkei 225 fell on fears that Japan’s latest monetary and fiscal stimulus measures may not be enough to revive price growth and tackle the long-standing problem of deflation. Wall Street rallied on Wednesday, helping benchmark S&P 500 snap a two-day drop as oil notched up its biggest gain in three weeks and financial stocks rose on strong corporate earnings. While the US private sector added 179,000 workers in July, up from June’s 176,000, the US services index cooled from a seven-month high of 56.5 in June to 55.5 in July, but remained above the neutral 50-mark.
