Pre Session- Bullish sentiment to return at D-Street; IIP, Inflation data to bring cheer
13/08/2015
Indian equity benchmarks may snap a four-day losing streak on Thursday as calm returned to markets across Asia despite China’s shocking move to devalue its currency while upbeat factory data signaled a pickup in Asia’s third biggest economy, that may revive risk taking appetite. Marking a fourth-straight finish in the red, the 30-share Sensex fell by 353.83 points or by 1.27 per cent to end at 27,512.26 on Wednesday as the rupee tumbled to a two-year low after China devalued its currency for a second straight day, raising concerns over a fresh Asian currency war with an Indian government official stressing that policymakers across the globe must take note of China’s yuan devaluation move and adjust their policies accordingly. Meanwhile, the logjam in the Parliament continued, ruling out the passage of the crucial GST bill during the Monsoon Session which ends on Thursday, putting the breakthrough reform on hold. Against the backdrop of better than expected industrial output data and record low inflation in July which may pave the way for further interest rate cuts by the RBI in the ongoing fiscal, Dalal Street Bulls may be back in action on Thursday. Industrial output in India grew at the fastest pace in four months, up 3.8 per cent, year on year in June 2015 following a revised 2.5 per cent expansion in May 2015, while consumer inflation fell to 3.78 per cent in July 2015 from 5.4 per cent in June 2015. GMR Infra, DLF and IOC will unveil their Q1 earnings report cards today. Amidst a rebound in Asian equities as investors digested the China Yuan devaluation moves, coupled with strength in the SGX CNX Nifty Index futures for August delivery which climbed 0.15 per cent or 12.50 points at 8,389.50 at 10:59 am Singapore time, Dalal Street is set for a gap up opening today.
Asian markets bounced back from the biggest sell-off in four years as the Yuan’s plunge eased. All three of the Shanghai Composite, Hang Seng and Nikkei 225 were trading higher even as the People’s Bank of China devalued the Yuan for a third straight day, cutting its daily yuan reference rate by 1.1 per cent against the dollar following a late intervention on Wednesday to stem the currency’s tumble. The Yuan was down 0.5 per cent against the greenback following losses of 2.8 per cent over the past two days. Wall Street ended on a quiet note overnight as investors assessed China’s stunning move to devalue the Yuan which may push back policy tightening in the US as a slowdown in China hurts global commodity prices and exerts further downward pressure on inflation.
13/08/2015
Indian equity benchmarks may snap a four-day losing streak on Thursday as calm returned to markets across Asia despite China’s shocking move to devalue its currency while upbeat factory data signaled a pickup in Asia’s third biggest economy, that may revive risk taking appetite. Marking a fourth-straight finish in the red, the 30-share Sensex fell by 353.83 points or by 1.27 per cent to end at 27,512.26 on Wednesday as the rupee tumbled to a two-year low after China devalued its currency for a second straight day, raising concerns over a fresh Asian currency war with an Indian government official stressing that policymakers across the globe must take note of China’s yuan devaluation move and adjust their policies accordingly. Meanwhile, the logjam in the Parliament continued, ruling out the passage of the crucial GST bill during the Monsoon Session which ends on Thursday, putting the breakthrough reform on hold. Against the backdrop of better than expected industrial output data and record low inflation in July which may pave the way for further interest rate cuts by the RBI in the ongoing fiscal, Dalal Street Bulls may be back in action on Thursday. Industrial output in India grew at the fastest pace in four months, up 3.8 per cent, year on year in June 2015 following a revised 2.5 per cent expansion in May 2015, while consumer inflation fell to 3.78 per cent in July 2015 from 5.4 per cent in June 2015. GMR Infra, DLF and IOC will unveil their Q1 earnings report cards today. Amidst a rebound in Asian equities as investors digested the China Yuan devaluation moves, coupled with strength in the SGX CNX Nifty Index futures for August delivery which climbed 0.15 per cent or 12.50 points at 8,389.50 at 10:59 am Singapore time, Dalal Street is set for a gap up opening today.
Asian markets bounced back from the biggest sell-off in four years as the Yuan’s plunge eased. All three of the Shanghai Composite, Hang Seng and Nikkei 225 were trading higher even as the People’s Bank of China devalued the Yuan for a third straight day, cutting its daily yuan reference rate by 1.1 per cent against the dollar following a late intervention on Wednesday to stem the currency’s tumble. The Yuan was down 0.5 per cent against the greenback following losses of 2.8 per cent over the past two days. Wall Street ended on a quiet note overnight as investors assessed China’s stunning move to devalue the Yuan which may push back policy tightening in the US as a slowdown in China hurts global commodity prices and exerts further downward pressure on inflation.
