Pre Session – Gap up opening on the cards at D-Street
11/08/2015
Indian equity benchmarks are poised to witness a bullish opening tracking gains in most fellow Asian equities and a positive finish at Wall Street overnight as a Fed official hinted at a later rate hike than September, buoying investor mood. The 30-share Sensex had declined 134.67 points or by 0.48 per cent to end at 28,101.72 on Monday amid fears that the ongoing Monsoon Session of the Parliament maybe a total washout and the crucial GST bill may fail to be passed during the current session, clouding Asia’s third biggest economy. The Monsoon Session, which has been hit by opposition demands of resignations of three key members of Modi’s party over graft allegations ends this week, with GST and the Land Bill stuck, derailing structural reforms in the economy. However, focus returns to the economy with the government scheduled to release the CPI and IIP data on Wednesday, which will offer further cues over the health of the country’s economy. A drop in consumer inflation from June’s eighth month high of 5.4 per cent, in July 2015 may pave the way for more policy easing by the RBI in the near-term. India’s industrial output has expanded every month since November, and grew 2.7 per cent, year on year in May 2015. Tata Steel and drug major Sun Pharmaceuticals will unveil their June quarter earnings report card today. Against the backdrop of gains in most Asian stocks, coupled with positive trade in the SGX CNX Nifty Index futures for August delivery which rose 0.13 per cent or 11 points at 8,536 at 10:47 am Singapore time, Dalal Street is set for a gap up opening today.
Most Asian stocks advanced on Tuesday tracking the biggest gains in American stocks since May as US Federal Reserve Vice Chairman Stanley Fisher expressed uncertainty over the prospects of policy tightening in September amid stubbornly low inflation, bolstering the lure for risky assets. Fisher stressed that the maiden lift-off in US interest rates since 2006 may not occur until inflation returns closer to the Fed’s 2 per cent target. China’s Shanghai Composite extended the biggest rally in a month amid speculation that policymakers may fasten mergers of state run enterprises to bolster growth in the world’s second biggest economy, while the People’s Bank of China devalued its currency to boost exports, leading to a record drop in the Yuan. Hang Seng surged but Japan’s Nikkei 225 fell as a stronger yen limited the appeal of exporter stocks.
11/08/2015
Indian equity benchmarks are poised to witness a bullish opening tracking gains in most fellow Asian equities and a positive finish at Wall Street overnight as a Fed official hinted at a later rate hike than September, buoying investor mood. The 30-share Sensex had declined 134.67 points or by 0.48 per cent to end at 28,101.72 on Monday amid fears that the ongoing Monsoon Session of the Parliament maybe a total washout and the crucial GST bill may fail to be passed during the current session, clouding Asia’s third biggest economy. The Monsoon Session, which has been hit by opposition demands of resignations of three key members of Modi’s party over graft allegations ends this week, with GST and the Land Bill stuck, derailing structural reforms in the economy. However, focus returns to the economy with the government scheduled to release the CPI and IIP data on Wednesday, which will offer further cues over the health of the country’s economy. A drop in consumer inflation from June’s eighth month high of 5.4 per cent, in July 2015 may pave the way for more policy easing by the RBI in the near-term. India’s industrial output has expanded every month since November, and grew 2.7 per cent, year on year in May 2015. Tata Steel and drug major Sun Pharmaceuticals will unveil their June quarter earnings report card today. Against the backdrop of gains in most Asian stocks, coupled with positive trade in the SGX CNX Nifty Index futures for August delivery which rose 0.13 per cent or 11 points at 8,536 at 10:47 am Singapore time, Dalal Street is set for a gap up opening today.
Most Asian stocks advanced on Tuesday tracking the biggest gains in American stocks since May as US Federal Reserve Vice Chairman Stanley Fisher expressed uncertainty over the prospects of policy tightening in September amid stubbornly low inflation, bolstering the lure for risky assets. Fisher stressed that the maiden lift-off in US interest rates since 2006 may not occur until inflation returns closer to the Fed’s 2 per cent target. China’s Shanghai Composite extended the biggest rally in a month amid speculation that policymakers may fasten mergers of state run enterprises to bolster growth in the world’s second biggest economy, while the People’s Bank of China devalued its currency to boost exports, leading to a record drop in the Yuan. Hang Seng surged but Japan’s Nikkei 225 fell as a stronger yen limited the appeal of exporter stocks.
