Pre Session- Bloodbath may continue at D-Street on global rout
28/07/2015
Amidst the backdrop of a severe meltdown in China that has sparked a global stock market rout, Indian equities may fall prey to further selling pressure on Tuesday with the 30-share Sensex set for a fourth straight decline. The Sensex tumbled by a massive 550.93 points or by 1.96 per cent to end at 27, 561.38 on Monday as shares in China sank the most in eight years while a probable tightening of Participatory notes (P-notes) norms following a Supreme Court recommendation panel on Black Money spooked investors. Muted Q1 corporate earnings, doubts over the ability of the Modi government to get key bills such as GST & Land Acquisition passed in the near-term with the first week of the ongoing Monsoon Session of the Parliament a complete washout, coupled with volatility ahead of the expiry of the July Futures & Options (F&O) contracts on Thursday, may continue to keep Dalal Street under pressure. Shares of HDFC, Maruti, IDBI, Spiecejet and state-run lenders Union Bank of India, Syndicate Bank and Punjab National Bank will be in focus today as they unveil their first quarter earnings report card, setting a clear trend for the June quarter earnings outlook. Tracking a steep sell-off in most Asian shares including that in mainland China, and a bearish finish at Wall Street overnight, Indian equity benchmarks are poised to witness a gap down opening today. Moreover, the SGX CNX Nifty Index futures for July delivery fell 0.19 per cent or 15.50 points at 8,340.50 at 10:44 am Singapore time, signaling no respite for Dalal Street.
Asian shares barring those in Hong Kong reeled under a worsening sell-off on Tuesday with Shanghai Composite tanking over 4 per cent after posting the biggest single day slump in more than eight years on Monday as a drop in China’s industrial profits in June signaled a worsening slowdown in the world’s second biggest economy, prompting investors to press the panic button, signaling that the recent government intervention to bring calm to the nation’s equities cannot be sustained amid weakening economic growth. Japan’s Nikkei 225 retreated as a stronger yen curbed the lure for exporter stocks. All eyes will be transfixed on the US Federal Reserve which begins a two-day meet today, wherein it may offer some cues over the timing to raise interest rates for the first time since 2006
28/07/2015
Amidst the backdrop of a severe meltdown in China that has sparked a global stock market rout, Indian equities may fall prey to further selling pressure on Tuesday with the 30-share Sensex set for a fourth straight decline. The Sensex tumbled by a massive 550.93 points or by 1.96 per cent to end at 27, 561.38 on Monday as shares in China sank the most in eight years while a probable tightening of Participatory notes (P-notes) norms following a Supreme Court recommendation panel on Black Money spooked investors. Muted Q1 corporate earnings, doubts over the ability of the Modi government to get key bills such as GST & Land Acquisition passed in the near-term with the first week of the ongoing Monsoon Session of the Parliament a complete washout, coupled with volatility ahead of the expiry of the July Futures & Options (F&O) contracts on Thursday, may continue to keep Dalal Street under pressure. Shares of HDFC, Maruti, IDBI, Spiecejet and state-run lenders Union Bank of India, Syndicate Bank and Punjab National Bank will be in focus today as they unveil their first quarter earnings report card, setting a clear trend for the June quarter earnings outlook. Tracking a steep sell-off in most Asian shares including that in mainland China, and a bearish finish at Wall Street overnight, Indian equity benchmarks are poised to witness a gap down opening today. Moreover, the SGX CNX Nifty Index futures for July delivery fell 0.19 per cent or 15.50 points at 8,340.50 at 10:44 am Singapore time, signaling no respite for Dalal Street.
Asian shares barring those in Hong Kong reeled under a worsening sell-off on Tuesday with Shanghai Composite tanking over 4 per cent after posting the biggest single day slump in more than eight years on Monday as a drop in China’s industrial profits in June signaled a worsening slowdown in the world’s second biggest economy, prompting investors to press the panic button, signaling that the recent government intervention to bring calm to the nation’s equities cannot be sustained amid weakening economic growth. Japan’s Nikkei 225 retreated as a stronger yen curbed the lure for exporter stocks. All eyes will be transfixed on the US Federal Reserve which begins a two-day meet today, wherein it may offer some cues over the timing to raise interest rates for the first time since 2006
