Pre Session- Bloodbath may continue at D-Street on global rout
24/08/2015
With global stocks in freefall mode, Indian equity benchmarks are set to extend a steep slide on Monday with markets in Asia treading water while Wall Street succumbing to its worst sell-off since 2011 on Friday, signaling bearish sentiment across the globe. The 30-share Sensex on Friday plummeted 241.75 points or by 0.88 per cent to end at 27,366.07 with rupee hitting a near two-year low as turmoil in global stocks deepened after China reported its worst factory contraction since the global financial crisis, forcing investors to shun risky assets. With global stocks and commodities falling like a pack of cards, sentiment at Dalal Street may remain bearish this week with the expiry of the August Futures & Options (F&O) contracts on Thursday likely to add to market volatility as traders roll over their positions. While a depreciating currency is negative for foreign capital flows and may threaten to widen the twin deficits and exert upward pressure on inflation, it is a boon for export driven sectors such as pharma and IT. Aside from global cues, movement of rupee against the dollar, oil prices, F& O expiry, D-Street investor mood this week will also be driven by the status of the Monsoon, FII investment trend and progress on reforms particularly on the MAT front as a select government committee urged the centre not to impose the tax on FIIs retrospectively. Amidst a worsening global market rout, coupled with a plunge in the SGX CNX Nifty Index futures for August delivery which nosedived 2.16 per cent or 175 points at 8,100 at 10:50 am Singapore time, Dalal Street is set for a gap down opening today.
Asian stocks fell prey to a massive sell-off with stocks in mainland China retreating over 7.5 per cent amid deepening fears surrounding the health of the world’s second biggest economy, while geopolitical tensions surrounding the Korean peninsula are keeping traders edgy. Hang Seng fell deeper into Bear market, down 3.5 per cent while Japan’s equities entered a correction phase, with the benchmark Nikkei 225 down by 3.2 per cent. US stocks cracked on Friday with Wall Street registering its biggest slump since 2011 as the Dow, S&P and Nasdaq all sank more than 3 per cent as commodities, currencies and equities feel the pain of China turmoil.
24/08/2015
With global stocks in freefall mode, Indian equity benchmarks are set to extend a steep slide on Monday with markets in Asia treading water while Wall Street succumbing to its worst sell-off since 2011 on Friday, signaling bearish sentiment across the globe. The 30-share Sensex on Friday plummeted 241.75 points or by 0.88 per cent to end at 27,366.07 with rupee hitting a near two-year low as turmoil in global stocks deepened after China reported its worst factory contraction since the global financial crisis, forcing investors to shun risky assets. With global stocks and commodities falling like a pack of cards, sentiment at Dalal Street may remain bearish this week with the expiry of the August Futures & Options (F&O) contracts on Thursday likely to add to market volatility as traders roll over their positions. While a depreciating currency is negative for foreign capital flows and may threaten to widen the twin deficits and exert upward pressure on inflation, it is a boon for export driven sectors such as pharma and IT. Aside from global cues, movement of rupee against the dollar, oil prices, F& O expiry, D-Street investor mood this week will also be driven by the status of the Monsoon, FII investment trend and progress on reforms particularly on the MAT front as a select government committee urged the centre not to impose the tax on FIIs retrospectively. Amidst a worsening global market rout, coupled with a plunge in the SGX CNX Nifty Index futures for August delivery which nosedived 2.16 per cent or 175 points at 8,100 at 10:50 am Singapore time, Dalal Street is set for a gap down opening today.
Asian stocks fell prey to a massive sell-off with stocks in mainland China retreating over 7.5 per cent amid deepening fears surrounding the health of the world’s second biggest economy, while geopolitical tensions surrounding the Korean peninsula are keeping traders edgy. Hang Seng fell deeper into Bear market, down 3.5 per cent while Japan’s equities entered a correction phase, with the benchmark Nikkei 225 down by 3.2 per cent. US stocks cracked on Friday with Wall Street registering its biggest slump since 2011 as the Dow, S&P and Nasdaq all sank more than 3 per cent as commodities, currencies and equities feel the pain of China turmoil.
