Pre Session- Sensex set to rebound after Wednesday’s bloodbath
11/08/2016
Indian equity benchmarks may witness a gap up opening on Thursday as the sharp losses in the previous session offer a good bargain buying opportunity, to investors and speculators, in equities, at existing levels. Gains in the CNX Nifty Index Futures for August delivery which climbed by 0.19 per cent or 16.5 points at 8,607, at 10:38 AM Singapore time, also signal that Dalal Street may open higher today. Shares of Dhanlaxhmi Bank, ICRA and JK Lakhsmi Cement will be in focus as they reveal their April-June 2016 quarter earnings. However, caution ahead of Friday’s industrial output data for June, and July consumer inflation numbers, which will offer further cues over the health of Asia’s third biggest economy, may keep gains at local bourses in check. Retail inflation rose to 5.77 percent in June 2016 from 5.76 per cent in May 2016 driven by higher food prices, while industrial output expanded 1.2 per cent in May 2016, year-on-year. Marking a second straight drop, the 30-share Sensex suffered its biggest fall in more than six weeks, tanking 310.28 points or by 1.1 per cent on Wednesday to end at 27,774.88 as traders resorted to profit taking after a recent rally. With no fresh triggers for a rally given that Q1 earnings are drawing to a close, RBI policy verdict on expected lines and GST enthusiasm waning as investors await greater clarity on India’s biggest reform since independence, Indian markets are likely to be in consolidated mode in the near-term.
Most Asian stocks were trading lower, retreating from a one-year high, tracking overnight losses at Wall Street as falling oil prices rekindled worries over global economic growth. Shanghai Composite fell amid caution ahead of Friday’s economic data including retail sales, industrial output and urban investment. Hang Seng rose while markets in Japan were shut due to a holiday. US stocks fell from a record high on Wednesday as falling crude prices hit energy stocks while bank shares fell amid speculation that the Fed may not raise interest rates this year.
11/08/2016
Indian equity benchmarks may witness a gap up opening on Thursday as the sharp losses in the previous session offer a good bargain buying opportunity, to investors and speculators, in equities, at existing levels. Gains in the CNX Nifty Index Futures for August delivery which climbed by 0.19 per cent or 16.5 points at 8,607, at 10:38 AM Singapore time, also signal that Dalal Street may open higher today. Shares of Dhanlaxhmi Bank, ICRA and JK Lakhsmi Cement will be in focus as they reveal their April-June 2016 quarter earnings. However, caution ahead of Friday’s industrial output data for June, and July consumer inflation numbers, which will offer further cues over the health of Asia’s third biggest economy, may keep gains at local bourses in check. Retail inflation rose to 5.77 percent in June 2016 from 5.76 per cent in May 2016 driven by higher food prices, while industrial output expanded 1.2 per cent in May 2016, year-on-year. Marking a second straight drop, the 30-share Sensex suffered its biggest fall in more than six weeks, tanking 310.28 points or by 1.1 per cent on Wednesday to end at 27,774.88 as traders resorted to profit taking after a recent rally. With no fresh triggers for a rally given that Q1 earnings are drawing to a close, RBI policy verdict on expected lines and GST enthusiasm waning as investors await greater clarity on India’s biggest reform since independence, Indian markets are likely to be in consolidated mode in the near-term.
Most Asian stocks were trading lower, retreating from a one-year high, tracking overnight losses at Wall Street as falling oil prices rekindled worries over global economic growth. Shanghai Composite fell amid caution ahead of Friday’s economic data including retail sales, industrial output and urban investment. Hang Seng rose while markets in Japan were shut due to a holiday. US stocks fell from a record high on Wednesday as falling crude prices hit energy stocks while bank shares fell amid speculation that the Fed may not raise interest rates this year.
