Pre Session- Bearish opening on the cards for Sensex on weak Asia trend
31/08/2015
Indian equity benchmarks are poised to open lower today tracking a sell-off across markets in Asia amid speculation that the US Federal Reserve may still raise interest rates in the near-term despite the China induced global financial turmoil, souring risk taking appetite. The 30-share Sensex on Friday advanced by 161.19 points or by 0.61 per cent to end at 26,392.38, recouping some of the losses booked earlier in the week amid the mayhem in Chinese markets. The sharp gains in the previous two sessions may pave way for some profit booking at Dalal Street at current levels, while volatility may remain high amid the continued rout in shares in China and jitters over possible Federal Reserve policy tightening move next month. Traders will focus on India’s Q2 GDP numbers set to be unveiled today which will offer fresh cues over the health of Asia’s third biggest economy that expanded 7.5 per cent in the March quarter. The August Manufacturing and Services PMI data is due this week while expectations of a rate cut by the RBI in September may support sentiment as Raghuram Rajan stressed that inflation has retreated at a quicker than expected pace and that the RBI is still in the monetary accommodation phase. Against the backdrop of an Asia sell-off and weakness in the SGX CNX Nifty Index futures for August delivery which declined 0.59 per cent or 47 points at 7,972.50 at 10:44 am Singapore time, Dalal Street is set for a gap down opening today.
Speculation that China may put a stop to its controversial stock market intervention took toll on Asian markets even as traders braced for a US interest rate hike after the Vice President of the world’s top central bank warned that it was too early to rule out September policy tightening as the ongoing volatility in global markets may ease quickly while seeing a pickup in the pace of inflation. Shanghai Composite tanked over 3 per cent and Hang Seng was trading lower amid reports of a crackdown by Chinese authorities on people engaged in market destabilizing activities. Japan’s Nikkei 225 tanked over 1 per cent as a stronger yen dimmed the appeal of exporter stocks. On Friday, Wall Street finished mixed as a sharp rebound in oil prices boosted energy stocks while traders weighed mixed US economic data with consumer spending rising in July amid a pickup in wages but household sentiment hit a three- month low in August amid turbulence in stock markets.
31/08/2015
Indian equity benchmarks are poised to open lower today tracking a sell-off across markets in Asia amid speculation that the US Federal Reserve may still raise interest rates in the near-term despite the China induced global financial turmoil, souring risk taking appetite. The 30-share Sensex on Friday advanced by 161.19 points or by 0.61 per cent to end at 26,392.38, recouping some of the losses booked earlier in the week amid the mayhem in Chinese markets. The sharp gains in the previous two sessions may pave way for some profit booking at Dalal Street at current levels, while volatility may remain high amid the continued rout in shares in China and jitters over possible Federal Reserve policy tightening move next month. Traders will focus on India’s Q2 GDP numbers set to be unveiled today which will offer fresh cues over the health of Asia’s third biggest economy that expanded 7.5 per cent in the March quarter. The August Manufacturing and Services PMI data is due this week while expectations of a rate cut by the RBI in September may support sentiment as Raghuram Rajan stressed that inflation has retreated at a quicker than expected pace and that the RBI is still in the monetary accommodation phase. Against the backdrop of an Asia sell-off and weakness in the SGX CNX Nifty Index futures for August delivery which declined 0.59 per cent or 47 points at 7,972.50 at 10:44 am Singapore time, Dalal Street is set for a gap down opening today.
Speculation that China may put a stop to its controversial stock market intervention took toll on Asian markets even as traders braced for a US interest rate hike after the Vice President of the world’s top central bank warned that it was too early to rule out September policy tightening as the ongoing volatility in global markets may ease quickly while seeing a pickup in the pace of inflation. Shanghai Composite tanked over 3 per cent and Hang Seng was trading lower amid reports of a crackdown by Chinese authorities on people engaged in market destabilizing activities. Japan’s Nikkei 225 tanked over 1 per cent as a stronger yen dimmed the appeal of exporter stocks. On Friday, Wall Street finished mixed as a sharp rebound in oil prices boosted energy stocks while traders weighed mixed US economic data with consumer spending rising in July amid a pickup in wages but household sentiment hit a three- month low in August amid turbulence in stock markets.
