Pre Session- Dalal Street may open lower amid caution ahead of US jobs data
02/09/2016 08:36
NIFTY Fut : SELL ZONE
BANKNIFTY Fut : SELL ZONE
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Indian equity benchmarks are likely to witness a gap down opening on Friday tracking a lackluster global trend as investors resort to a cautious approach ahead of the much anticipated US jobs data for August to be released today which may offer further cues over the timing of the US Federal Reserve’s next interest rate hike. Losses in the CNX Nifty Index Futures for September delivery which were trading at 8,805, down by 0.22 per cent or 19 points at 10:44 AM Singapore time, signal that the Sensex may open on a bearish note today. Non-farm payrolls in the US may have increased by a strong 180,000 in August after a 255,000 rise in July, signaling a healthy job market recovery in the world’s biggest economy that may prompt the Fed to hike borrowing costs before the end of the year, a move which could lead to volatility in capital flows to emerging markets including India. Meanwhile, weaker-than-expected Q1 GDP data has dashed hopes of Asia’s third biggest economy achieving 8 per cent growth for the ongoing fiscal. India’s economic growth hit a six-quarter low of 7.1 per cent in Q1 FY 2016-17. However, strong domestic and foreign demand lifted manufacturing activity to a 13-month high in August as the Manufacturing PMI rose to 52.6 from 51.8 in July, with a reading above 50 signaling expansion. The Services PMI data for India will be released on Monday. In July, the services index for the country stood at a three-month high of 51.9. Snapping a three-day winning streak, the 30-share Sensex on Thursday fell 28.69 points or by 0.10 per cent to 28,423.48 as traders weighed the disappointing GDP numbers against a pickup in manufacturing activity.
Asian stocks were trading in a narrow range as risk aversion ruled sentiment ahead of the US jobs data which may determine whether the world’s top central bank moves to tighten interest rates as early as this month. Commodity shares were hit by falling oil prices which headed for their worst weekly decline in eight months on renewed supply glut fears. China’s Shanghai Composite and Hang Seng rose modestly while Japan’s Nikkei 225 was trading little changed. Wall Street ended on a listless note on Thursday amid caution ahead of Friday’s payrolls numbers while a renewed contraction in US manufacturing clouded the country’s economic outlook. Marking the biggest drop in more than two years, the US manufacturing index fell 3.2 points to 49.4 in August. Further, US jobless claims rose 2,000 to 263,000 last week.
Top traded Volumes on NSE Nifty – Idea Cellular Ltd. 62238716.00, Bharti Airtel Ltd. 35411027.00, ICICI Bank Ltd. 16453500.00, State Bank of India 12175873.00 and Axis Bank Ltd. 10204784.00.
On BSE, total number of shares traded was 61.11 Crore and total turnover stood at Rs. 7017.13 Crore.
