Pre Market Report- Slight gap down opening seen at Dalal Street
16/08/2016
Indian equity benchmarks are likely to witness a slightly negative opening on Tuesday tracking a lackluster trend in markets across Asia while traders return to their desks after the Independence Day holiday. The CNX Nifty Index Futures for August delivery was trading at 8,709.5, down by 0.08 per cent or 7 points at 10:39 AM Singapore time, a sign that the Sensex may open with slim losses today. Investors will weigh mixed macro-economic data with industrial output growth gaining steam, while consumer inflation shooting beyond the official tolerance level of 6 per cent, leaving little room for near-term monetary easing. India’s industrial output climbed 2.1 per cent in June 2016 from the same month a year ago, compared to an annual 1.2 per cent gain in May 2016. Further, retail inflation accelerated to a two-year high of 6.07 per cent in July 2016 from 5.77 per cent in June 2016. The focus this week will be on the July wholesale inflation data, while traders will keep a close eye on the progress of the monsoon rains. Foreign investment trend and global cues will also dictate sentiment at local bourses this week. Just Dial and Power Grid will be reporting their June quarter earnings on Tuesday. Marking a third straight weekly gain, the 30-share Sensex rose 74.05 points or 0.26 per cent to 28,152.4 last week as solid corporate earnings bolstered sentiment.
Asian stocks were trading mixed even as speculation rose that global central banks will continue to keep monetary policy loose and step up stimulus amid signs of lackluster economic growth. A rally in oil prices boosted commodity producers while listless US retail sales data on Friday pared back expectations of a US Fed interest rate hike this year. China’s Shanghai Composite fell, Hang Seng was trading tad higher and Japan’s Nikkei 225 declined. US stocks rose to fresh highs on Monday on reduced bets of Fed rate tightening this year after US retail sales stalled in July and New York manufacturing contracted this month.
16/08/2016
Indian equity benchmarks are likely to witness a slightly negative opening on Tuesday tracking a lackluster trend in markets across Asia while traders return to their desks after the Independence Day holiday. The CNX Nifty Index Futures for August delivery was trading at 8,709.5, down by 0.08 per cent or 7 points at 10:39 AM Singapore time, a sign that the Sensex may open with slim losses today. Investors will weigh mixed macro-economic data with industrial output growth gaining steam, while consumer inflation shooting beyond the official tolerance level of 6 per cent, leaving little room for near-term monetary easing. India’s industrial output climbed 2.1 per cent in June 2016 from the same month a year ago, compared to an annual 1.2 per cent gain in May 2016. Further, retail inflation accelerated to a two-year high of 6.07 per cent in July 2016 from 5.77 per cent in June 2016. The focus this week will be on the July wholesale inflation data, while traders will keep a close eye on the progress of the monsoon rains. Foreign investment trend and global cues will also dictate sentiment at local bourses this week. Just Dial and Power Grid will be reporting their June quarter earnings on Tuesday. Marking a third straight weekly gain, the 30-share Sensex rose 74.05 points or 0.26 per cent to 28,152.4 last week as solid corporate earnings bolstered sentiment.
Asian stocks were trading mixed even as speculation rose that global central banks will continue to keep monetary policy loose and step up stimulus amid signs of lackluster economic growth. A rally in oil prices boosted commodity producers while listless US retail sales data on Friday pared back expectations of a US Fed interest rate hike this year. China’s Shanghai Composite fell, Hang Seng was trading tad higher and Japan’s Nikkei 225 declined. US stocks rose to fresh highs on Monday on reduced bets of Fed rate tightening this year after US retail sales stalled in July and New York manufacturing contracted this month.
