Pre Session- Gap up opening seen at D-Street; F&O expiry eyed
30/07/2015 08:42
Positive opening is on the cards for key Indian equity benchmarks on Thursday amidst a bullish global trend but caution ahead of the expiry of the July Futures & Options (F&O) contracts today may limit gains at Dalal Street, causing some amount of volatility as traders roll over their positions ahead of the derivative expiry. Snapping a four-day losing streak, the 30-share Sensex jumped by 104.2 points or by 0.38 per cent to end at 27,563.43 on Wednesday supported by value buying and short covering. Shares of NTPC, ITC, Dr Reddy Laboratories, Glenmark Pharmaceuticals, Kotak Mahindra Bank, Oriental Bank of Commerce and Dena Bank will be in focus today as these companies unveil their June quarter earnings report cards today. A rebound in Asian equities with shares in mainland China snapping a four-day run of losses, coupled with a strong finish at Wall Street overnight after the US Federal Reserve talked up the world’s biggest economy will support domestic sentiment. The SGX CNX Nifty Index futures for July delivery climbed 0.24 per cent or 20 points at 8,399.50 at 10:41 am Singapore time, signaling a gap up opening for the domestic benchmarks today.
On the Asian front, China’s Shanghai Composite rose after the IMF said that the Chinese economy is resilient to withstand the recent stock sell-off that has forced the country’s officials to intervene to stem the rot. Hang Sang notched up significant gains while a weaker yen and better than estimated corporate earnings provided fuel to Japanese stocks which jumped on Thursday. Wall Street rallied on Wednesday after earnings topped forecasts while the US Federal Reserve signaled an improvement in the labour and the housing markets. The Fed stressed that job gains had been solid, while dropping the modifier “somewhat” from its description of the decline in labour market slack, keeping the door open for a hike in borrowing costs for the first time since 2006, this year. Even as the FOMC refrained from providing markets, a clear signal of the timing of the interest rate lift-off, the world’s top central bank has indicated that the decision would be “data dependent”, meaning that if the economy continues to improve on expected lines, then policy tightening may happen as early as September or later this year. The focus will be on Q2 US GDP data set for release today which may show that the American economy expanded at an annualized rate of 2.5 per cent following a 0.2 per cent contraction in the March quarter.
30/07/2015 08:42
Positive opening is on the cards for key Indian equity benchmarks on Thursday amidst a bullish global trend but caution ahead of the expiry of the July Futures & Options (F&O) contracts today may limit gains at Dalal Street, causing some amount of volatility as traders roll over their positions ahead of the derivative expiry. Snapping a four-day losing streak, the 30-share Sensex jumped by 104.2 points or by 0.38 per cent to end at 27,563.43 on Wednesday supported by value buying and short covering. Shares of NTPC, ITC, Dr Reddy Laboratories, Glenmark Pharmaceuticals, Kotak Mahindra Bank, Oriental Bank of Commerce and Dena Bank will be in focus today as these companies unveil their June quarter earnings report cards today. A rebound in Asian equities with shares in mainland China snapping a four-day run of losses, coupled with a strong finish at Wall Street overnight after the US Federal Reserve talked up the world’s biggest economy will support domestic sentiment. The SGX CNX Nifty Index futures for July delivery climbed 0.24 per cent or 20 points at 8,399.50 at 10:41 am Singapore time, signaling a gap up opening for the domestic benchmarks today.
On the Asian front, China’s Shanghai Composite rose after the IMF said that the Chinese economy is resilient to withstand the recent stock sell-off that has forced the country’s officials to intervene to stem the rot. Hang Sang notched up significant gains while a weaker yen and better than estimated corporate earnings provided fuel to Japanese stocks which jumped on Thursday. Wall Street rallied on Wednesday after earnings topped forecasts while the US Federal Reserve signaled an improvement in the labour and the housing markets. The Fed stressed that job gains had been solid, while dropping the modifier “somewhat” from its description of the decline in labour market slack, keeping the door open for a hike in borrowing costs for the first time since 2006, this year. Even as the FOMC refrained from providing markets, a clear signal of the timing of the interest rate lift-off, the world’s top central bank has indicated that the decision would be “data dependent”, meaning that if the economy continues to improve on expected lines, then policy tightening may happen as early as September or later this year. The focus will be on Q2 US GDP data set for release today which may show that the American economy expanded at an annualized rate of 2.5 per cent following a 0.2 per cent contraction in the March quarter.
