Pre Session Dalal Street may see mild gap down opening on subdued global trend
08/09/2016
Indian equity benchmarks are likely to witness a slightly negative opening on Thursday tracking sluggishness in markets across Asia and a lackluster finish at Wall Street overnight as traders awaited the outlook for monetary policy in some key global economies, curbing risk taking appetite. The CNX Nifty Index Futures for September delivery which were trading at 8,954.5, down by 0.05 per cent or 4.5 points at 10:30 AM Singapore time, signal that the Sensex may open tad lower today. Shares of Jindal Steel & Power and SAIL will be in focus today as the companies reveal their April-June 2016 quarter earnings. ONGC may witness some selling pressure as the company in after-market hours on Wednesday reported a 21 per cent drop in Q1 FY 2016-17 net profit at Rs 4,233 crore in the wake of lower oil prices. In the absence of any major domestic triggers, Dalal Street may remain in consolidation mode while focus shifts to monetary policy decisions across the US, UK, Euro area and Japan this month. Further global central bank stimulus and a continued low interest rate regime may keep powering foreign fund inflows into Asia’s third biggest economy as risk appetite increases. Indian stocks retreated from an 18-month high on Wednesday, with the Sensex snapping a two-day winning streak, falling 51.66 points or by 0.18 per cent to 28,926.36 on profit taking by traders at existing levels.
Asian stocks were trading on a listless note as investors stayed on the sidelines ahead of the European Central Bank (ECB) meeting with the Frankfurt-based central bank likely to maintain record stimulus and issue fresh growth and inflation outlooks for the Euro area. Uncertainty remains over the timing of the next US Federal Reserve interest rate hike with Richmond Fed President Jeffrey Lacker signaling a strong case for September tightening while Kansas City Fed President Esther George stressed that the US labour market was operating at or near full strength. Shanghai Composite and Hang Seng were trading tad higher ahead of China’s August trade data. Japan’s Nikkei 225 fell even as Japan upped its estimate for Q2 GDP growth to 0.7 per cent annualized rate from 0.2 per cent. US stocks ended little changed on Wednesday with benchmarks holding near record highs as traders assessed the case for Fed policy tightening in the coming months amid the recent bag of mixed economic data. US job openings surged by the most in six months, up by 228,000 to 5.87 million in July.
08/09/2016
Indian equity benchmarks are likely to witness a slightly negative opening on Thursday tracking sluggishness in markets across Asia and a lackluster finish at Wall Street overnight as traders awaited the outlook for monetary policy in some key global economies, curbing risk taking appetite. The CNX Nifty Index Futures for September delivery which were trading at 8,954.5, down by 0.05 per cent or 4.5 points at 10:30 AM Singapore time, signal that the Sensex may open tad lower today. Shares of Jindal Steel & Power and SAIL will be in focus today as the companies reveal their April-June 2016 quarter earnings. ONGC may witness some selling pressure as the company in after-market hours on Wednesday reported a 21 per cent drop in Q1 FY 2016-17 net profit at Rs 4,233 crore in the wake of lower oil prices. In the absence of any major domestic triggers, Dalal Street may remain in consolidation mode while focus shifts to monetary policy decisions across the US, UK, Euro area and Japan this month. Further global central bank stimulus and a continued low interest rate regime may keep powering foreign fund inflows into Asia’s third biggest economy as risk appetite increases. Indian stocks retreated from an 18-month high on Wednesday, with the Sensex snapping a two-day winning streak, falling 51.66 points or by 0.18 per cent to 28,926.36 on profit taking by traders at existing levels.
Asian stocks were trading on a listless note as investors stayed on the sidelines ahead of the European Central Bank (ECB) meeting with the Frankfurt-based central bank likely to maintain record stimulus and issue fresh growth and inflation outlooks for the Euro area. Uncertainty remains over the timing of the next US Federal Reserve interest rate hike with Richmond Fed President Jeffrey Lacker signaling a strong case for September tightening while Kansas City Fed President Esther George stressed that the US labour market was operating at or near full strength. Shanghai Composite and Hang Seng were trading tad higher ahead of China’s August trade data. Japan’s Nikkei 225 fell even as Japan upped its estimate for Q2 GDP growth to 0.7 per cent annualized rate from 0.2 per cent. US stocks ended little changed on Wednesday with benchmarks holding near record highs as traders assessed the case for Fed policy tightening in the coming months amid the recent bag of mixed economic data. US job openings surged by the most in six months, up by 228,000 to 5.87 million in July.
