Pre Session – Flat opening likely for D-Street on bearish global trend
03/08/2015
Indian equity benchmarks may halt a three-day winning streak on Monday as traders resort to profit booking ahead of the Reserve Bank of India’s (RBI) much anticipated monetary policy meeting tomorrow with the apex bank likely to maintain status quo on interest rates amid a renewed spike in food prices that pushed consumer price inflation to an eight- month high in June, leaving less room for further monetary easing in the near-term. Marking a third straight advance, the 30-share Sensex rallied 409.21 points or by 1.48 per cent to end at 28,114.56 on Friday after the government announced plans to inject additional capital in state-run banks that are grappling with bad loans while hopes that the GST bill may be passed during the ongoing Monsoon Session of the Parliament also boosted sentiment. Apart from the RBI meet, the market trend this week will be dictated by June quarter earnings numbers from the likes of Bharti Airtel, BHEL, M&M, Tata Motors and Hero Moto while India’s manufacturing & services PMI will offer latest cues over the health of Asia’s third biggest economy. Shares of state-run oil marketing firms will be in focus after they cut petrol prices by Rs 2.43 per litre and diesel prices by Rs 3.60 per litre on Friday. Meanwhile, the state-run pension fund EPFO that has more than USD 100 billion in assets, will start investing in Indian stocks from August 4, which may turn out to be a positive for Dalal Street. On the global front, US July non-farm payrolls data is due this week with another 200K plus employment growth number likely to raise calls for a rate hike by the Fed in the coming months. Against the backdrop of a sell-off in Asia amid tepid China factory data, and a bearish finish at Wall Street on Friday, coupled with soft trade in the SGX CNX Nifty Index futures for August delivery which climbed a minuscule 0.03 per cent or 2.5 points at 8,575.50 at 10:50 am Singapore time, Dalal Street is set for a listless opening today.
Asian markets succumbed to selling pressure on Monday as weak China factory data underscored concerns over a deepening slowdown in the world’s second biggest economy. China’s Shanghai Composite was trading 1 per cent lower after the country’s official manufacturing PMI fell to a five-month low of 50 in July from 50.2 in June while a private gauge showed a contraction in the sector. Hang Seng and Nikkei 225 were also trading in the red, while American stocks marked a bearish close on Friday as investors digested dismal earnings from energy majors Exxon Mobil and Chevron as an oil price rout hit profitability.
03/08/2015
Indian equity benchmarks may halt a three-day winning streak on Monday as traders resort to profit booking ahead of the Reserve Bank of India’s (RBI) much anticipated monetary policy meeting tomorrow with the apex bank likely to maintain status quo on interest rates amid a renewed spike in food prices that pushed consumer price inflation to an eight- month high in June, leaving less room for further monetary easing in the near-term. Marking a third straight advance, the 30-share Sensex rallied 409.21 points or by 1.48 per cent to end at 28,114.56 on Friday after the government announced plans to inject additional capital in state-run banks that are grappling with bad loans while hopes that the GST bill may be passed during the ongoing Monsoon Session of the Parliament also boosted sentiment. Apart from the RBI meet, the market trend this week will be dictated by June quarter earnings numbers from the likes of Bharti Airtel, BHEL, M&M, Tata Motors and Hero Moto while India’s manufacturing & services PMI will offer latest cues over the health of Asia’s third biggest economy. Shares of state-run oil marketing firms will be in focus after they cut petrol prices by Rs 2.43 per litre and diesel prices by Rs 3.60 per litre on Friday. Meanwhile, the state-run pension fund EPFO that has more than USD 100 billion in assets, will start investing in Indian stocks from August 4, which may turn out to be a positive for Dalal Street. On the global front, US July non-farm payrolls data is due this week with another 200K plus employment growth number likely to raise calls for a rate hike by the Fed in the coming months. Against the backdrop of a sell-off in Asia amid tepid China factory data, and a bearish finish at Wall Street on Friday, coupled with soft trade in the SGX CNX Nifty Index futures for August delivery which climbed a minuscule 0.03 per cent or 2.5 points at 8,575.50 at 10:50 am Singapore time, Dalal Street is set for a listless opening today.
Asian markets succumbed to selling pressure on Monday as weak China factory data underscored concerns over a deepening slowdown in the world’s second biggest economy. China’s Shanghai Composite was trading 1 per cent lower after the country’s official manufacturing PMI fell to a five-month low of 50 in July from 50.2 in June while a private gauge showed a contraction in the sector. Hang Seng and Nikkei 225 were also trading in the red, while American stocks marked a bearish close on Friday as investors digested dismal earnings from energy majors Exxon Mobil and Chevron as an oil price rout hit profitability.
