Pre Session: Sensex seen opening higher as US, China extend recovery
28/08/2015
Indian equity benchmarks are set to begin the first day of September series on positive note as markets from US to China make a strong rebound, bolstering risk taking appetite. The Indian equities witnessed a smart rebound on Thursday, marking their biggest single-day gain in nearly two weeks, driven by unabated buying in blue chips stocks. The 30-share Sensex reclaimed crucial 26k level and Nifty ended over 7900 mark, reversing the heavy losses in the previous session, as markets from China to the US make an impressive comeback, sparked a wave of value buying ahead of the expiry of derivative contracts at the end of the session. 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 1.43 points at 8,136 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today.
On the global front, Asian stocks extended rally for second day on Friday as investors cheered after data showed that the US economy grew faster than expected in the second quarter. Shanghai Composite spiked 2.5 per cent, extending 5.34 per cent gain 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 0.5 per cent while Japan’s Nikkei 225 jumped 2.75 per cent as a weaker yen bolstered the appeal of exporter stocks. Wall Street also continued gaining streak for second day on Thursday after Data showed US gross domestic product rose at a 3.7 percent annualized rate, higher than analyst expectations, and up from the 2.3 percent reported last month. Adding optimism to market, a separate report showed US manufactured durable goods grew by 2 per cent in the month of July. The continued growth has surprised experts, who had expected orders to fall by 0.4 per cent. Meanwhile, Federal Reserve Bank of New York President William Dudley said that the case for September rate tightening has become less compelling in light of the global financial market turmoil. Cheering the news, the Dow Jones Industrial Average jumped 2.27 per cent, Nasdaq Composite soared 2.45 per cent and the benchmark S&P 500 climbed 2.43 per cent.
28/08/2015
Indian equity benchmarks are set to begin the first day of September series on positive note as markets from US to China make a strong rebound, bolstering risk taking appetite. The Indian equities witnessed a smart rebound on Thursday, marking their biggest single-day gain in nearly two weeks, driven by unabated buying in blue chips stocks. The 30-share Sensex reclaimed crucial 26k level and Nifty ended over 7900 mark, reversing the heavy losses in the previous session, as markets from China to the US make an impressive comeback, sparked a wave of value buying ahead of the expiry of derivative contracts at the end of the session. 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 1.43 points at 8,136 at 10:44 am Singapore time, Dalal Street is set for a gap up opening today.
On the global front, Asian stocks extended rally for second day on Friday as investors cheered after data showed that the US economy grew faster than expected in the second quarter. Shanghai Composite spiked 2.5 per cent, extending 5.34 per cent gain 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 0.5 per cent while Japan’s Nikkei 225 jumped 2.75 per cent as a weaker yen bolstered the appeal of exporter stocks. Wall Street also continued gaining streak for second day on Thursday after Data showed US gross domestic product rose at a 3.7 percent annualized rate, higher than analyst expectations, and up from the 2.3 percent reported last month. Adding optimism to market, a separate report showed US manufactured durable goods grew by 2 per cent in the month of July. The continued growth has surprised experts, who had expected orders to fall by 0.4 per cent. Meanwhile, Federal Reserve Bank of New York President William Dudley said that the case for September rate tightening has become less compelling in light of the global financial market turmoil. Cheering the news, the Dow Jones Industrial Average jumped 2.27 per cent, Nasdaq Composite soared 2.45 per cent and the benchmark S&P 500 climbed 2.43 per cent.
