Pre Session- Gap up opening on the cards for D-Street
05/08/2015
Tracking a positive trend in fellow Asian peers, Indian equity benchmarks are poised to reverse Tuesday’s losses and regain momentum on Wednesday. Snapping a four-day winning streak, the 30-share Sensex fell 115.13 points or by 0.41 per cent to end at 28,071.93 on Tuesday after the RBI chose not to cut interest rates amid sticky inflation and warned that banks had failed to pass on the full benefit of its previous rate cuts to customers. The apex bank maintained the repo rate and the CRR untouched at 7.25 per cent and 4 per cent, respectively, while retaining the 7.6 per cent growth forecast for Asia’s third biggest economy in the ongoing fiscal, whilst signaling an improving outlook. However, the RBI left the door open for further rate cuts in the coming months as it cut its consumer inflation forecast for January-March 2016 by 0.2 per cent as lower crude oil prices and a better than expected Monsoon signal easing price pressures ahead. Traders will also eye the India Services PMI for July while shares of FMCG firm Emami and state-run lender Canara Bank will be in focus today as they unveil their June quarter earnings report cards. India’s services activity had fallen into contraction in June, with the PMI dropping to a 14-month low of 49.2, below the neutral mark of 50 that separates expansion from contraction. Against the backdrop of gains in Asian stocks, coupled with positive trade in the SGX CNX Nifty Index futures for August delivery which rose 0.20 per cent or 17 points at 8,553 at 10:29 am Singapore time, Dalal Street is set for a gap up opening today.
Asian stocks advanced as a pickup in China services growth eased concerns over the outlook in the world’s second biggest economy, but speculation of an imminent hike in US interest rates limited gains. China’s Shanghai Composite extended Tuesday’s advance after the Services PMI rose to the highest level in 11 months at 53.8 in July from 51.8 in June. Hang Seng rose and Japan’s Nikkei 225 posted handsome gains as a weaker yen boosted the lure for exporter stocks. Wall Street fell for a third straight day on Tuesday as poor results from Allstate Corp. and CVS Health Corp marred sentiment while two leading Fed officials warned that a September rate hike was almost a done deal.
05/08/2015
Tracking a positive trend in fellow Asian peers, Indian equity benchmarks are poised to reverse Tuesday’s losses and regain momentum on Wednesday. Snapping a four-day winning streak, the 30-share Sensex fell 115.13 points or by 0.41 per cent to end at 28,071.93 on Tuesday after the RBI chose not to cut interest rates amid sticky inflation and warned that banks had failed to pass on the full benefit of its previous rate cuts to customers. The apex bank maintained the repo rate and the CRR untouched at 7.25 per cent and 4 per cent, respectively, while retaining the 7.6 per cent growth forecast for Asia’s third biggest economy in the ongoing fiscal, whilst signaling an improving outlook. However, the RBI left the door open for further rate cuts in the coming months as it cut its consumer inflation forecast for January-March 2016 by 0.2 per cent as lower crude oil prices and a better than expected Monsoon signal easing price pressures ahead. Traders will also eye the India Services PMI for July while shares of FMCG firm Emami and state-run lender Canara Bank will be in focus today as they unveil their June quarter earnings report cards. India’s services activity had fallen into contraction in June, with the PMI dropping to a 14-month low of 49.2, below the neutral mark of 50 that separates expansion from contraction. Against the backdrop of gains in Asian stocks, coupled with positive trade in the SGX CNX Nifty Index futures for August delivery which rose 0.20 per cent or 17 points at 8,553 at 10:29 am Singapore time, Dalal Street is set for a gap up opening today.
Asian stocks advanced as a pickup in China services growth eased concerns over the outlook in the world’s second biggest economy, but speculation of an imminent hike in US interest rates limited gains. China’s Shanghai Composite extended Tuesday’s advance after the Services PMI rose to the highest level in 11 months at 53.8 in July from 51.8 in June. Hang Seng rose and Japan’s Nikkei 225 posted handsome gains as a weaker yen boosted the lure for exporter stocks. Wall Street fell for a third straight day on Tuesday as poor results from Allstate Corp. and CVS Health Corp marred sentiment while two leading Fed officials warned that a September rate hike was almost a done deal.
