Pre Market Report- Sensex to open higher on positive Asia trend; US jobs data eyed
05/08/2016
Indian equity benchmarks may witness a gap up opening on Friday tracking a rally across markets in Asia as traders across the globe eye the crucial July US jobs data which will signal the health of the labour market recovery in the world’s biggest economy and may offer some clues over the timing of the next US Fed interest rate hike. Gains in the CNX Nifty Index Futures for August delivery which climbed 0.59 per cent or 51.5 points at 8,655.5, at 10:35 AM Singapore time, signal that Dalal Street may open on a positive note today. Shares of GSK Consumer Healthcare, HT Media and Pfizer will be in focus as they reveal their April-June 2016 quarter report cards. The passage of the long pending GST bill in the Rajya Sabha this week will continue to support investor sentiment, although concerns surrounding its implementation may temper gains at Dalal Street. While GST seeks to create a unified market in India by harmonising 11 state and central levies into a national sales tax, the government and companies from sectors such as automobiles and logistics will have to implement new technology structures for the roll-out of GST while analysts warned that GST could have a short-term negative impact on the economy as higher taxes adversely affect consumption and push up inflation by 20-70 basis points in its first year of implantation. Traders are awaiting greater clarity on India’s biggest reform since independence. Snapping a four-day losing streak, the 30-share Sensex on Thursday advanced by 16.86 points or by 0.06 per cent to end at 27,714.37 on GST clearance.
Asian stocks rose after the Bank of England cut interest rates to a record low and expanded asset purchases to help cushion Britain’s economy from the fallout of Brexit, bolstering risk taking appetite. The central bank cut interest rates for the first time since 2009, reducing its official bank rate by 50 basis points to 0.25 per cent while bolstering its asset purchase scheme by 70 billion pounds to 435 billion pounds through the purchase of up to 10 billion pounds of UK corporate bonds and additional purchases of UK government bonds of 60 billion pounds. Shanghai Composite was tad higher, Hang Seng jumped over 1 per cent and Nikkei 225 climbed after the Bank of Japan boosted daily ETF purchases. The focus is firmly on Friday’s US jobs data. Analysts are expecting a 180K addition to US non-farm payrolls in July after a 287,000 increase in June. Solid jobs numbers may bolster the case for a rate hike in 2016. US stocks ended little changed on Thursday after traders weighed disappointing economic data as jobless claims rose 3,000 last week while factory orders fell 1.5 per cent in June.
05/08/2016
Indian equity benchmarks may witness a gap up opening on Friday tracking a rally across markets in Asia as traders across the globe eye the crucial July US jobs data which will signal the health of the labour market recovery in the world’s biggest economy and may offer some clues over the timing of the next US Fed interest rate hike. Gains in the CNX Nifty Index Futures for August delivery which climbed 0.59 per cent or 51.5 points at 8,655.5, at 10:35 AM Singapore time, signal that Dalal Street may open on a positive note today. Shares of GSK Consumer Healthcare, HT Media and Pfizer will be in focus as they reveal their April-June 2016 quarter report cards. The passage of the long pending GST bill in the Rajya Sabha this week will continue to support investor sentiment, although concerns surrounding its implementation may temper gains at Dalal Street. While GST seeks to create a unified market in India by harmonising 11 state and central levies into a national sales tax, the government and companies from sectors such as automobiles and logistics will have to implement new technology structures for the roll-out of GST while analysts warned that GST could have a short-term negative impact on the economy as higher taxes adversely affect consumption and push up inflation by 20-70 basis points in its first year of implantation. Traders are awaiting greater clarity on India’s biggest reform since independence. Snapping a four-day losing streak, the 30-share Sensex on Thursday advanced by 16.86 points or by 0.06 per cent to end at 27,714.37 on GST clearance.
Asian stocks rose after the Bank of England cut interest rates to a record low and expanded asset purchases to help cushion Britain’s economy from the fallout of Brexit, bolstering risk taking appetite. The central bank cut interest rates for the first time since 2009, reducing its official bank rate by 50 basis points to 0.25 per cent while bolstering its asset purchase scheme by 70 billion pounds to 435 billion pounds through the purchase of up to 10 billion pounds of UK corporate bonds and additional purchases of UK government bonds of 60 billion pounds. Shanghai Composite was tad higher, Hang Seng jumped over 1 per cent and Nikkei 225 climbed after the Bank of Japan boosted daily ETF purchases. The focus is firmly on Friday’s US jobs data. Analysts are expecting a 180K addition to US non-farm payrolls in July after a 287,000 increase in June. Solid jobs numbers may bolster the case for a rate hike in 2016. US stocks ended little changed on Thursday after traders weighed disappointing economic data as jobless claims rose 3,000 last week while factory orders fell 1.5 per cent in June.
