Pre Session-Bearish opening seen for D-Street on ECB disappointment
09/09/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday tracking a mostly bearish trend across markets in Asia and a negative finish at Wall Street overnight as the European Central Bank (ECB) played down the need for further monetary stimulus despite clear signs that the recovery in the 19-member Euro area economy may be faltering, curbing risk taking appetite. The Frankfurt-based central bank on Thursday refrained from expanding its QE program while leaving key interest rates unchanged. Losses in the CNX Nifty Index Futures for September delivery which were trading at 8,947.5, down by 0.32 per cent or 29 points at 10:34 AM Singapore time, signal that the Sensex may open lower today. Shares of Coal India maybe in focus today as it reveals its earnings for the April-June 2016 quarter. SAIL may come under selling pressure today as the company in after-market hours on Thursday reported a net loss of Rs 534.92 crore in the first quarter ended June 30, 2016, from Rs 248.24 crore in the year-ago period. In the absence of any major domestic triggers, sentiment at Dalal Street may remain cautious as traders weigh the prospects of further monetary easing in Japan and Europe and the likelihood of a Federal Reserve interest rate hike this year. Further global central bank stimulus and a prolonged low interest rate regime may bolster foreign fund inflows into Asia’s third biggest economy. The 30-share Sensex on Thursday closed at 29,045.28, a 17-month high, up by 118.92 points or by 0.41 per cent driven by buying in auto and realty sectors.
Most Asian shares retreated as the ECB downplayed the prospect of a boost in asset purchases even in the wake of heightened uncertainty surrounding the Euro area economy which could be severely hit by Britain’s exit from the EU. Shanghai Composite was tad lower as China’s factory-gate prices fell 0.8 per cent in August 2016, year-on-year while consumer inflation at 1.3 per cent was subdued. Hang Seng rose and Japan’s Nikkei 225 fell as ECB refrained from committing to further stimulus and amid speculation that North Korea conducted a nuclear test. US stocks fell on Thursday as a surge in oil prices was overshadowed by ECB disappointment. Meanwhile, US jobless claims fell by 4,000 to 259,000 last week, a seven-week low.
09/09/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday tracking a mostly bearish trend across markets in Asia and a negative finish at Wall Street overnight as the European Central Bank (ECB) played down the need for further monetary stimulus despite clear signs that the recovery in the 19-member Euro area economy may be faltering, curbing risk taking appetite. The Frankfurt-based central bank on Thursday refrained from expanding its QE program while leaving key interest rates unchanged. Losses in the CNX Nifty Index Futures for September delivery which were trading at 8,947.5, down by 0.32 per cent or 29 points at 10:34 AM Singapore time, signal that the Sensex may open lower today. Shares of Coal India maybe in focus today as it reveals its earnings for the April-June 2016 quarter. SAIL may come under selling pressure today as the company in after-market hours on Thursday reported a net loss of Rs 534.92 crore in the first quarter ended June 30, 2016, from Rs 248.24 crore in the year-ago period. In the absence of any major domestic triggers, sentiment at Dalal Street may remain cautious as traders weigh the prospects of further monetary easing in Japan and Europe and the likelihood of a Federal Reserve interest rate hike this year. Further global central bank stimulus and a prolonged low interest rate regime may bolster foreign fund inflows into Asia’s third biggest economy. The 30-share Sensex on Thursday closed at 29,045.28, a 17-month high, up by 118.92 points or by 0.41 per cent driven by buying in auto and realty sectors.
Most Asian shares retreated as the ECB downplayed the prospect of a boost in asset purchases even in the wake of heightened uncertainty surrounding the Euro area economy which could be severely hit by Britain’s exit from the EU. Shanghai Composite was tad lower as China’s factory-gate prices fell 0.8 per cent in August 2016, year-on-year while consumer inflation at 1.3 per cent was subdued. Hang Seng rose and Japan’s Nikkei 225 fell as ECB refrained from committing to further stimulus and amid speculation that North Korea conducted a nuclear test. US stocks fell on Thursday as a surge in oil prices was overshadowed by ECB disappointment. Meanwhile, US jobless claims fell by 4,000 to 259,000 last week, a seven-week low.
