Pre Session- Gap down opening seen at D-Street amid Asia weakness
28/09/2015
Indian equity benchmarks are poised for a tepid opening today tracking bearish cues from most markets across Asia as heightened concerns over China sour the lure for risky assets while traders stick to a cautious approach ahead of the much anticipated RBI policy rate decision on Tuesday in the which the central bank may undertake a fourth interest rate cut this year. The 30-share Sensex on Thursday had advanced 40.51 points or by 0.16 per cent to end at 25,863.5 as traders rolled over their positions on the day of the expiry of the September futures & options (F&O) contracts while markets were shut due to a holiday on Friday. The RBI which has slashed borrowing costs by an overall 75 basis points is likely to undertake another 25 basis points reduction in the repo rate tomorrow as softening consumer inflation offers more room to the apex bank to bolster monetary easing to help prop up growth in Asia’s third biggest economy. Going forward, traders will also eye the India manufacturing PMI data set for release later in the week. Further, Fed Chair Janet Yellen’s re-iteration last week that the central bank is on course for an interest rate lift-off this year may cause some uneasiness among traders. Against the backdrop of a negative trend in most Asian markets, coupled with weakness in the SGX CNX Nifty Index futures for October delivery which fell by 0.54 per cent or 42.5 points at 7,881.50 at 10:44 am Singapore time, Dalal Street is set to open lower today.
Most Asian stocks retreated on Monday after a plunge in China’s industrial profits underscored concerns over a worsening slowdown in the world’s second biggest economy, sapping risk taking appetite. Shanghai Composite fell after data showed that industrial profits in China nosedived 8.8 per cent, year on year in August 2015, worsening from a 2.9 per cent drop in July 2015. Hang Seng logged modest gains but Japan’s Nikkei 225 tanked over 1 per cent as a stronger yen curbed the appeal of exporter stocks. On Friday, Wall Street ended mixed as a slump in biotech stocks offset data showing that the world’s biggest economy expanded at a 3.9 per cent annualized rate in the June quarter, faster than a previous estimation of 3.7 per cent, while traders assessed Yellen’s reassuring remarks over the US economy.
28/09/2015
Indian equity benchmarks are poised for a tepid opening today tracking bearish cues from most markets across Asia as heightened concerns over China sour the lure for risky assets while traders stick to a cautious approach ahead of the much anticipated RBI policy rate decision on Tuesday in the which the central bank may undertake a fourth interest rate cut this year. The 30-share Sensex on Thursday had advanced 40.51 points or by 0.16 per cent to end at 25,863.5 as traders rolled over their positions on the day of the expiry of the September futures & options (F&O) contracts while markets were shut due to a holiday on Friday. The RBI which has slashed borrowing costs by an overall 75 basis points is likely to undertake another 25 basis points reduction in the repo rate tomorrow as softening consumer inflation offers more room to the apex bank to bolster monetary easing to help prop up growth in Asia’s third biggest economy. Going forward, traders will also eye the India manufacturing PMI data set for release later in the week. Further, Fed Chair Janet Yellen’s re-iteration last week that the central bank is on course for an interest rate lift-off this year may cause some uneasiness among traders. Against the backdrop of a negative trend in most Asian markets, coupled with weakness in the SGX CNX Nifty Index futures for October delivery which fell by 0.54 per cent or 42.5 points at 7,881.50 at 10:44 am Singapore time, Dalal Street is set to open lower today.
Most Asian stocks retreated on Monday after a plunge in China’s industrial profits underscored concerns over a worsening slowdown in the world’s second biggest economy, sapping risk taking appetite. Shanghai Composite fell after data showed that industrial profits in China nosedived 8.8 per cent, year on year in August 2015, worsening from a 2.9 per cent drop in July 2015. Hang Seng logged modest gains but Japan’s Nikkei 225 tanked over 1 per cent as a stronger yen curbed the appeal of exporter stocks. On Friday, Wall Street ended mixed as a slump in biotech stocks offset data showing that the world’s biggest economy expanded at a 3.9 per cent annualized rate in the June quarter, faster than a previous estimation of 3.7 per cent, while traders assessed Yellen’s reassuring remarks over the US economy.
