Pre Market Report-Gap up opening on the cards for Sensex as Fed rate hike fears ease
07/09/2016
Indian equity benchmarks are likely to witness a positive opening on Wednesday as tepid US services data signaled underlying sluggishness in the world’s biggest economy, dimming speculation of a Federal Reserve interest rate hike in the near-term, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for September delivery which were trading at 8,987.5, up by 0.24 per cent or 21.5 points at 10:32 AM Singapore time, signal that the Sensex may open higher today. Shares of BHEL, ONGC, GAIL and SpiceJet will be in focus today as the companies reveal their April-June 2016 quarter earnings. Oil India may witness some selling pressure as the company in after-market hours on Tuesday posted a 33.5 per cent drop in its June 2016 quarter net profit at Rs 494.41 crore. Optimism over Asia’s third biggest economy in the wake of recent manufacturing and services data may continue to bolster sentiment at Dalal Street. While India’s services growth hit an over three and a half-year high in August 2016 that of manufacturing jumped to the highest level in 13 months. Further, a delayed Fed rate hike may also boost foreign fund inflows into emerging markets such as India. Strong global cues and sustained foreign fund inflows pushed the Sensex to an 18-month high on Tuesday with the 30-share benchmark rallying 445.91 points or by 1.56 per cent to 28,978.02.
Asian stocks were trading mixed as traders weighed weaker-than-expected US services data which raised speculation that the Fed may keep lower interest rates for longer. US services activity expanded at the weakest pace in six years, with the ISM Non-Manufacturing PMI falling to 51.4, the lowest since February 2010, from 55.5 in July, but remaining above the neutral 50-mark. Shanghai Composite rose, Hang Seng was trading tad lower and Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Stocks at Wall Street advanced on Tuesday with Nasdaq hitting a record high on waning bets of a September Fed rate hike.
07/09/2016
Indian equity benchmarks are likely to witness a positive opening on Wednesday as tepid US services data signaled underlying sluggishness in the world’s biggest economy, dimming speculation of a Federal Reserve interest rate hike in the near-term, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for September delivery which were trading at 8,987.5, up by 0.24 per cent or 21.5 points at 10:32 AM Singapore time, signal that the Sensex may open higher today. Shares of BHEL, ONGC, GAIL and SpiceJet will be in focus today as the companies reveal their April-June 2016 quarter earnings. Oil India may witness some selling pressure as the company in after-market hours on Tuesday posted a 33.5 per cent drop in its June 2016 quarter net profit at Rs 494.41 crore. Optimism over Asia’s third biggest economy in the wake of recent manufacturing and services data may continue to bolster sentiment at Dalal Street. While India’s services growth hit an over three and a half-year high in August 2016 that of manufacturing jumped to the highest level in 13 months. Further, a delayed Fed rate hike may also boost foreign fund inflows into emerging markets such as India. Strong global cues and sustained foreign fund inflows pushed the Sensex to an 18-month high on Tuesday with the 30-share benchmark rallying 445.91 points or by 1.56 per cent to 28,978.02.
Asian stocks were trading mixed as traders weighed weaker-than-expected US services data which raised speculation that the Fed may keep lower interest rates for longer. US services activity expanded at the weakest pace in six years, with the ISM Non-Manufacturing PMI falling to 51.4, the lowest since February 2010, from 55.5 in July, but remaining above the neutral 50-mark. Shanghai Composite rose, Hang Seng was trading tad lower and Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Stocks at Wall Street advanced on Tuesday with Nasdaq hitting a record high on waning bets of a September Fed rate hike.
