Pre Session- D-Street may extend four-day losing streak
29/07/2015
Indian equity benchmarks are poised to witness a fifth straight decline on Wednesday as cautious sentiment continues to dominate Dalal Street ahead of the expiry of the July Futures & Options (F&O) contracts on Thursday while traders play safe eyeing the outcome of the two-day US Federal Reserve policy meet late Wednesday, in which the world’s top central bank is likely to offer some cues over the timing for a maiden interest rate lift-off since 2006. Marking a fourth straight finish in the red, the 30-share Sensex on Tuesday tumbled 102.15 points or by 0.37 per cent to close at a six-week low of 27,459.23 as speculation that the Reserve Bank of India (RBI) may refrain from an interest rate cut on August 4, a continued stock market rout in China, fears over tighter norms for participatory notes and a mixed bag of Q1 corporate earnings soured the lure for risky assets. Shares of Vedanta, Yes Bank, Nestle, Dabur and Godrej Consumer Products will be in focus today as these companies unveil their June quarter earnings report card. The SGX CNX Nifty Index futures for July delivery fell 0.10 per cent at 8,338 at 09:54 am Singapore time amidst a mixed trend in Asian shares, signaling a gap down opening for the domestic benchmarks today.
Asian stocks were trading on a mixed note on Wednesday with shares in mainland China rebounding after a violent sell-off in the previous two sessions amidst speculation of government buying to steady the country’s equity market. Hang Seng posted slim gains while Japan’s Nikkei 225 slipped as the country’s retail sales fell in June, clouding the outlook for the world’s third biggest economy. The focus of investors across the globe will be on the US Fed’s monetary policy decision with many anticipating today’s meet to be the last before the Fed begins a planned lift-off in interest rates most likely from September. Wall Street rebounded on Tuesday as better than estimated corporate earnings overshadowed mixed economic reports and a Chinese stock slump.
