Pre Session- Sensex set for a cautious start as RBI eyed
01/06/2015
Caution may rule at Dalal Street at the start of a fresh trading week with attention focused on the Reserve Bank of India’s (RBI) monetary policy review on Tuesday. Investors are betting on a 25 basis points cut in key interest rates, the third such reduction this year. Investors may also react to Friday’s Q4 GDP numbers which showed that India overtook China to become the world’s fastest growing major economy as Gross Domestic Product expanded at 7.5 per cent in the fourth quarter ended March 31, 2015, year on year, topping analysts’ forecasts of 7.3 per cent and accelerating from the revised 6.6 per cent gain in Q3 FY 2014-15. Traders will also eye the May India HSBC Manufacturing PMI data set for release on Monday. Shares of auto companies may be in focus as they unveil their May sales numbers. Moreover, the stock of L&T may witness some negative movement after the engineering major posted a 27 per cent drop in Q4 net profit to Rs 2,070 crore, year on year. Weakness in the SGX CNX Nifty Index futures for June delivery which fell 0.24 per cent at 8,458.50 at 10:37 am Singapore time, signals a subdued opening at Dalal Street on Monday. Meanwhile, markets across Asia were trading mixed as investors digested a contraction in the American economy in the first quarter, prompting a sell-off at Wall Street on Friday. The world’s biggest economy fell into contraction for the third time since June 2009, shrinking an annualized 0.7 per cent in the January to March 2015 quarter, compared to a previously reported 0.2 per cent gain as bad weather, a swelling trade shortfall owing to a stronger dollar, and a slump in oil prices played spoilsport. Shares in mainland China surged while those in Hong Kong were trading higher as investors gave thumb up to Chinese factory data which eased worries over a slowdown in Asia’s biggest economy. China’s official manufacturing PMI came in at 50.2 in May, above the mark of 50 that separates expansion from contraction. Japan’s Nikkei 225 was trading in the red amidst disappointing US GDP data. The Sensex, on Friday soared by 321.73 points or by 1.17 per cent to end at 27,828.44.
01/06/2015
Caution may rule at Dalal Street at the start of a fresh trading week with attention focused on the Reserve Bank of India’s (RBI) monetary policy review on Tuesday. Investors are betting on a 25 basis points cut in key interest rates, the third such reduction this year. Investors may also react to Friday’s Q4 GDP numbers which showed that India overtook China to become the world’s fastest growing major economy as Gross Domestic Product expanded at 7.5 per cent in the fourth quarter ended March 31, 2015, year on year, topping analysts’ forecasts of 7.3 per cent and accelerating from the revised 6.6 per cent gain in Q3 FY 2014-15. Traders will also eye the May India HSBC Manufacturing PMI data set for release on Monday. Shares of auto companies may be in focus as they unveil their May sales numbers. Moreover, the stock of L&T may witness some negative movement after the engineering major posted a 27 per cent drop in Q4 net profit to Rs 2,070 crore, year on year. Weakness in the SGX CNX Nifty Index futures for June delivery which fell 0.24 per cent at 8,458.50 at 10:37 am Singapore time, signals a subdued opening at Dalal Street on Monday. Meanwhile, markets across Asia were trading mixed as investors digested a contraction in the American economy in the first quarter, prompting a sell-off at Wall Street on Friday. The world’s biggest economy fell into contraction for the third time since June 2009, shrinking an annualized 0.7 per cent in the January to March 2015 quarter, compared to a previously reported 0.2 per cent gain as bad weather, a swelling trade shortfall owing to a stronger dollar, and a slump in oil prices played spoilsport. Shares in mainland China surged while those in Hong Kong were trading higher as investors gave thumb up to Chinese factory data which eased worries over a slowdown in Asia’s biggest economy. China’s official manufacturing PMI came in at 50.2 in May, above the mark of 50 that separates expansion from contraction. Japan’s Nikkei 225 was trading in the red amidst disappointing US GDP data. The Sensex, on Friday soared by 321.73 points or by 1.17 per cent to end at 27,828.44.
