Pre Session-Bears may continue to rule the roost at Dalal Street
22/07/2015
Indian equity benchmarks are poised to extend a two-day slide as a mixed bag of earnings reports from India Inc. cast doubts over the health of Asia’s third biggest economy, while a global sell-off curbs risk taking appetite. The first batch of earnings numbers have been a mixed bag, setting no clear trend over the earnings outlook. Moreover, worries over the government’s ability to get key bills including the GST and the Land Acquisition passed during the Monsoon Session of Parliament may prompt continued profit taking from Dalal Street investors. The first session of the Monsoon Session that began on Tuesday was a total washout with no business conducted as opposition parties demanded the resignation of three key members of the Modi government’s party amidst corruption scandals. Moreover, bearish cues from markets across Asia and an overnight sell-off at Wall Street amid dismal Q2 earnings report cards from tech giant Apple and Microsoft may mar domestic sentiment. Weakness in the SGX CNX Nifty Index futures for July delivery which fell 0.47 per cent at 8,513 at 10:47 am Singapore time signals a gap down opening at Dalal Street on Wednesday. Marking a second straight close in the red, the 30-share Sensex, on Tuesday shed 237.98 points or by 0.84 per cent to end at 28,182.14 as traders weighed better than expected Q1 earnings numbers from IT bellwether Infosys against a profitability warning from drug major Sun Pharmaceuticals. Shares of telecom player Idea Cellular may hog the limelight today after the company reported a 28 per cent Y-o-Y rise in Q1 FY 2016 net profit at Rs 930.8 crore as sustained growth in data usage bolstered revenue. However, traders may shun Cairn India after the energy major posted a 24 per cent Y-o-Y drop in June quarter net income at Rs 835 crore amid a slump in oil prices.
Most Asian stocks were trading in the red on Wednesday led by steep losses in technology companies after Apple and Microsoft posted disappointing results. While shares in mainland China eked out a fifth straight rally as government-supported measures seem to have contained the stock market rout witnessed earlier this month, Hang Seng tumbled by more than 1 per cent and Japan’s Nikkei 225 also succumbed to heavy losses as a stronger yen curbed the lure for exporter stocks. Overnight, American equities retreated as investors shunned tech shares after a poor set of Q2 earnings numbers from the likes of Apple, IBM and United Technologies.
22/07/2015
Indian equity benchmarks are poised to extend a two-day slide as a mixed bag of earnings reports from India Inc. cast doubts over the health of Asia’s third biggest economy, while a global sell-off curbs risk taking appetite. The first batch of earnings numbers have been a mixed bag, setting no clear trend over the earnings outlook. Moreover, worries over the government’s ability to get key bills including the GST and the Land Acquisition passed during the Monsoon Session of Parliament may prompt continued profit taking from Dalal Street investors. The first session of the Monsoon Session that began on Tuesday was a total washout with no business conducted as opposition parties demanded the resignation of three key members of the Modi government’s party amidst corruption scandals. Moreover, bearish cues from markets across Asia and an overnight sell-off at Wall Street amid dismal Q2 earnings report cards from tech giant Apple and Microsoft may mar domestic sentiment. Weakness in the SGX CNX Nifty Index futures for July delivery which fell 0.47 per cent at 8,513 at 10:47 am Singapore time signals a gap down opening at Dalal Street on Wednesday. Marking a second straight close in the red, the 30-share Sensex, on Tuesday shed 237.98 points or by 0.84 per cent to end at 28,182.14 as traders weighed better than expected Q1 earnings numbers from IT bellwether Infosys against a profitability warning from drug major Sun Pharmaceuticals. Shares of telecom player Idea Cellular may hog the limelight today after the company reported a 28 per cent Y-o-Y rise in Q1 FY 2016 net profit at Rs 930.8 crore as sustained growth in data usage bolstered revenue. However, traders may shun Cairn India after the energy major posted a 24 per cent Y-o-Y drop in June quarter net income at Rs 835 crore amid a slump in oil prices.
Most Asian stocks were trading in the red on Wednesday led by steep losses in technology companies after Apple and Microsoft posted disappointing results. While shares in mainland China eked out a fifth straight rally as government-supported measures seem to have contained the stock market rout witnessed earlier this month, Hang Seng tumbled by more than 1 per cent and Japan’s Nikkei 225 also succumbed to heavy losses as a stronger yen curbed the lure for exporter stocks. Overnight, American equities retreated as investors shunned tech shares after a poor set of Q2 earnings numbers from the likes of Apple, IBM and United Technologies.
