Pre Market Report- Sensex may open higher; F&O expiry eyed
25/08/2016
Indian equity benchmarks are likely to witness a gap up opening on Thursday on the day of the expiry of the August derivative contracts. Gains in the CNX Nifty Index Futures for August delivery which were trading at 8,673.5, up by 0.21 per cent or 18.5 points at 10:38 AM Singapore time, signal that the Sensex may open on a positive note today. Volatility may remain high at the local bourses as traders roll over their positions amid the August Futures & Options (F&O) contract expiry. Shares of Gammon Infrastructure will be in focus as it reveals its April-June quarter report card. With lack of any major domestic trigger, sentiment at the local bourses will be dictated by the outlook for US interest rates as traders across the globe eye Fed Chair Janet Yellen’s speech at Jackson Hole on Friday, in which she may provide some cues over when the world’s top central bank is likely to tighten borrowing costs further. An indicator to refrain from near-term monetary tightening may bolster capital flows into emerging markets including Asia’s third biggest economy. Marking a second straight gain, the 30-share Sensex on Wednesday advanced 69.73 points or by 0.25 per cent to 28,059.94 with gains restricted by uncertainty over the timing of a US interest rate hike.
Most Asian stocks were trading lower as commodity shares slumped as oil prices fell after a surprise surge in US inventories last week while Turkey’s military operation in Syria signaled heightened geopolitical risks, curbing risk taking appetite. Caution ahead of Yellen’s speech tomorrow weighed as investors await whether the Fed Chair will back recent comments from FOMC officials who signaled that a rate hike could come as soon as September. Bets of the Fed raising interest rates before the end of the year have risen over the past month. China’s Shanghai Composite fell amid fears that the government may act to curb speculative activity in the country’s financial markets. Hang Seng was trading tad higher while Japan’s Nikkei 225 fell amid a slump in oil related stocks. US stocks fell on Wednesday amid a sell-off in shares of drugmakers and as traders weighed a drop in existing home sales which raised doubts over the US housing market recovery. US existing home sales fell 3.2 per cent to a 5.39 million annual rate in July, marking the first drop since February.
25/08/2016
Indian equity benchmarks are likely to witness a gap up opening on Thursday on the day of the expiry of the August derivative contracts. Gains in the CNX Nifty Index Futures for August delivery which were trading at 8,673.5, up by 0.21 per cent or 18.5 points at 10:38 AM Singapore time, signal that the Sensex may open on a positive note today. Volatility may remain high at the local bourses as traders roll over their positions amid the August Futures & Options (F&O) contract expiry. Shares of Gammon Infrastructure will be in focus as it reveals its April-June quarter report card. With lack of any major domestic trigger, sentiment at the local bourses will be dictated by the outlook for US interest rates as traders across the globe eye Fed Chair Janet Yellen’s speech at Jackson Hole on Friday, in which she may provide some cues over when the world’s top central bank is likely to tighten borrowing costs further. An indicator to refrain from near-term monetary tightening may bolster capital flows into emerging markets including Asia’s third biggest economy. Marking a second straight gain, the 30-share Sensex on Wednesday advanced 69.73 points or by 0.25 per cent to 28,059.94 with gains restricted by uncertainty over the timing of a US interest rate hike.
Most Asian stocks were trading lower as commodity shares slumped as oil prices fell after a surprise surge in US inventories last week while Turkey’s military operation in Syria signaled heightened geopolitical risks, curbing risk taking appetite. Caution ahead of Yellen’s speech tomorrow weighed as investors await whether the Fed Chair will back recent comments from FOMC officials who signaled that a rate hike could come as soon as September. Bets of the Fed raising interest rates before the end of the year have risen over the past month. China’s Shanghai Composite fell amid fears that the government may act to curb speculative activity in the country’s financial markets. Hang Seng was trading tad higher while Japan’s Nikkei 225 fell amid a slump in oil related stocks. US stocks fell on Wednesday amid a sell-off in shares of drugmakers and as traders weighed a drop in existing home sales which raised doubts over the US housing market recovery. US existing home sales fell 3.2 per cent to a 5.39 million annual rate in July, marking the first drop since February.
