Pre Market Report- Soft opening seen for Sensex on growth slowdown, mixed global cues
01/09/2016
Indian equity benchmarks are likely to witness a slight gap down opening on Thursday as traders react to weaker-than-expected Q1 GDP growth in Asia’s third biggest economy while a mixed trend in global markets amid caution ahead of US August payrolls data and a renewed slump in oil to below USD 45 per barrel on fresh glut worries, curbs risk taking appetite. The CNX Nifty Index Futures for September delivery were trading at 8,837, down by 0.08 per cent or 7.5 points at 10:20 AM Singapore time, signaling that the Sensex may open tad lower today. India’s economy grew at 7.1 per cent in the April-June 2016 quarter, the slowest pace in five quarters, weighed down by sluggish investment and farm output. That compared to the 7.9 per cent expansion witnessed in Q4 FY 2015-16. Analysts had projected an expansion of 7.4 per cent in the country’s economy in the first quarter of the ongoing fiscal. The focus today will be on the August manufacturing PMI data which will offer further cues over the economy’s health. India’s manufacturing PMI rose to a four-month high of 51.8 in July, with a reading above 50 signaling expansion. Marking a third straight rally, the 30-share Sensex on Wednesday jumped by 109.16 points or by 0.39 per cent to end at 28,452.17, a fresh 13-month high helped by gains in capital goods, banking, auto and consumer durables space.
Major Asian stocks were trading with mild gains today as strong China manufacturing data offset a sell-off in commodity shares while traders awaited the much anticipated US jobs data to be released on Friday, and which will offer further clues over the timing of the next Fed interest rate hike. The US economy may have added 180,000 workers in August after a 255,000 increase in headcount in July. Robust August jobs data may strengthen the case for the world’s top central bank to hike borrowing costs as early as this month. Shanghai Composite was trading tad higher and Hang Seng rose after China’s manufacturing expanded at the quickest pace in almost two years as the official manufacturing PMI rose to 50.4 in August from 49.9 in July. Japan’s Nikkei 225 rose modestly as traders looked ahead to the US payrolls numbers for last month to gauge the outlook for US interest rates and yen movement. Wall Street ended lower on Wednesday amid a sell-off in energy companies after a surge in US stockpiles pushed oil to below USD 45 per barrel. Meanwhile, the US private sector added 177,000 jobs in August, compared to July’s 194,000, while pending home sale index rose 1.3 per cent in July from June
01/09/2016
Indian equity benchmarks are likely to witness a slight gap down opening on Thursday as traders react to weaker-than-expected Q1 GDP growth in Asia’s third biggest economy while a mixed trend in global markets amid caution ahead of US August payrolls data and a renewed slump in oil to below USD 45 per barrel on fresh glut worries, curbs risk taking appetite. The CNX Nifty Index Futures for September delivery were trading at 8,837, down by 0.08 per cent or 7.5 points at 10:20 AM Singapore time, signaling that the Sensex may open tad lower today. India’s economy grew at 7.1 per cent in the April-June 2016 quarter, the slowest pace in five quarters, weighed down by sluggish investment and farm output. That compared to the 7.9 per cent expansion witnessed in Q4 FY 2015-16. Analysts had projected an expansion of 7.4 per cent in the country’s economy in the first quarter of the ongoing fiscal. The focus today will be on the August manufacturing PMI data which will offer further cues over the economy’s health. India’s manufacturing PMI rose to a four-month high of 51.8 in July, with a reading above 50 signaling expansion. Marking a third straight rally, the 30-share Sensex on Wednesday jumped by 109.16 points or by 0.39 per cent to end at 28,452.17, a fresh 13-month high helped by gains in capital goods, banking, auto and consumer durables space.
Major Asian stocks were trading with mild gains today as strong China manufacturing data offset a sell-off in commodity shares while traders awaited the much anticipated US jobs data to be released on Friday, and which will offer further clues over the timing of the next Fed interest rate hike. The US economy may have added 180,000 workers in August after a 255,000 increase in headcount in July. Robust August jobs data may strengthen the case for the world’s top central bank to hike borrowing costs as early as this month. Shanghai Composite was trading tad higher and Hang Seng rose after China’s manufacturing expanded at the quickest pace in almost two years as the official manufacturing PMI rose to 50.4 in August from 49.9 in July. Japan’s Nikkei 225 rose modestly as traders looked ahead to the US payrolls numbers for last month to gauge the outlook for US interest rates and yen movement. Wall Street ended lower on Wednesday amid a sell-off in energy companies after a surge in US stockpiles pushed oil to below USD 45 per barrel. Meanwhile, the US private sector added 177,000 jobs in August, compared to July’s 194,000, while pending home sale index rose 1.3 per cent in July from June
