Pre Session-D-Street Bulls set to return on global rebound; F&O expiry eyed
27/08/2015
Indian equity benchmarks are poised to stage a smart rebound on Thursday following the sharp tumble in the previous session, as markets from China to the US make an impressive comeback, bolstering risk taking appetite. The 30-share Sensex on Wednesday plunged by 317.72 points or by 1.22 per cent to end at 25,714.66 as a steep five-day rout in China and caution ahead of the expiry of the August Futures & Options (F&O) contracts on Thursday weighed on sentiment. Volatility may remain high as traders roll over their positions on the day of the August derivative expiry. Hopes of a delayed US Federal Reserve interest rate lift-off, robust US economic data and fresh stimulus injection in China has helped revive global investor sentiment after the mayhem that wiped out almost USD 8 trillion from stocks worldwide since August 11, when China stunned the world by devaluing the Yuan by the most in two decades. Against the backdrop of a renewed rally across markets in Asia and a bullish finish at Wall Street overnight, coupled with strength in the SGX CNX Nifty Index futures for August delivery which jumped 1.11 per cent or 87.50 points at 7,873 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today.
Asian stocks soared on Thursday with markets in China halting the biggest five-day slump since 1996 as valuations at the lowest level in eight months induced bargain buying. Shanghai Composite jumped 2.3 per cent, reversing the 1.3 per cent slide on Wednesday. The Chinese benchmark had shed a mammoth 23 per cent over the past five trading sessions. A fifth interest rate reduction since November from the People’s Bank of China may help spur a recovery in the world’s second biggest economy. Hang Seng advanced over 2.3 per cent while Japan’s Nikkei 225 rallied almost 2 per cent as a weaker yen bolstered the appeal of exporter stocks. Snapping a six-day rout, Wall Street on Wednesday posted the biggest rally in four years after a top Federal Reserve official stressed that the case for policy tightening in September has weakened amidst the global financial market turmoil fueled by fears over slowing Chinese economic growth. Meanwhile, a proxy of capital spending in the US rose by the most in over a year in July, a sign that the world’s biggest economy is making a swift recovery from a slowdown earlier in the year. The Dow Jones Industrial Average jumped 3.95 per cent, Nasdaq Composite soared 4.24 per cent and the benchmark S&P 500 climbed 3.90 per cent.
27/08/2015
Indian equity benchmarks are poised to stage a smart rebound on Thursday following the sharp tumble in the previous session, as markets from China to the US make an impressive comeback, bolstering risk taking appetite. The 30-share Sensex on Wednesday plunged by 317.72 points or by 1.22 per cent to end at 25,714.66 as a steep five-day rout in China and caution ahead of the expiry of the August Futures & Options (F&O) contracts on Thursday weighed on sentiment. Volatility may remain high as traders roll over their positions on the day of the August derivative expiry. Hopes of a delayed US Federal Reserve interest rate lift-off, robust US economic data and fresh stimulus injection in China has helped revive global investor sentiment after the mayhem that wiped out almost USD 8 trillion from stocks worldwide since August 11, when China stunned the world by devaluing the Yuan by the most in two decades. Against the backdrop of a renewed rally across markets in Asia and a bullish finish at Wall Street overnight, coupled with strength in the SGX CNX Nifty Index futures for August delivery which jumped 1.11 per cent or 87.50 points at 7,873 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today.
Asian stocks soared on Thursday with markets in China halting the biggest five-day slump since 1996 as valuations at the lowest level in eight months induced bargain buying. Shanghai Composite jumped 2.3 per cent, reversing the 1.3 per cent slide on Wednesday. The Chinese benchmark had shed a mammoth 23 per cent over the past five trading sessions. A fifth interest rate reduction since November from the People’s Bank of China may help spur a recovery in the world’s second biggest economy. Hang Seng advanced over 2.3 per cent while Japan’s Nikkei 225 rallied almost 2 per cent as a weaker yen bolstered the appeal of exporter stocks. Snapping a six-day rout, Wall Street on Wednesday posted the biggest rally in four years after a top Federal Reserve official stressed that the case for policy tightening in September has weakened amidst the global financial market turmoil fueled by fears over slowing Chinese economic growth. Meanwhile, a proxy of capital spending in the US rose by the most in over a year in July, a sign that the world’s biggest economy is making a swift recovery from a slowdown earlier in the year. The Dow Jones Industrial Average jumped 3.95 per cent, Nasdaq Composite soared 4.24 per cent and the benchmark S&P 500 climbed 3.90 per cent.
