Pre Session- Bearish opening on the cards for Sensex on global sell-off
Indian equity benchmarks are poised to witness a gap down opening today tracking a bearish trend across markets in Asia and a negative finish at Wall Street overnight as traders weighed the FOMC minutes which signaled that conditions for a lift-off in US interest rates were approaching even as officials sought a pickup in inflation, while a fast growing China economic gloom also soured investor appetite for risky assets. Snapping a two-day losing streak, the 30-share Sensex on Wednesday rallied 100.1 points or by 0.36 per cent to end at 27,931.64 as weakness in the rupee bolstered the outlook for export focused sectors such as healthcare and IT. The rupee fell to a two-year low against the greenback as worries of a worsening China slowdown and last week’s massive Yuan devaluation prompts investors to shun emerging market currencies. Fears that a further depreciation of the rupee may delay an interest rate cut by the Reserve Bank of India (RBI) which meets next on the 29th of September may also spoil the mood at Dalal Street, clouding the outlook for Asia’s third biggest economy. Heightened concerns over global economic growth may keep market participants on the edge as the US Federal Reserve prepares to raise borrowing costs for the first time since 2006 while a worsening China slowdown roils commodities and piles on the pain for the world economy. Amidst a bearish trend in Asia, coupled with weakness in the SGX CNX Nifty Index futures for August delivery which fell 0.63 per cent or 53 points at 8,453 at 10:50 am Singapore time, Dalal Street is set to open lower today.
Indian equity benchmarks are poised to witness a gap down opening today tracking a bearish trend across markets in Asia and a negative finish at Wall Street overnight as traders weighed the FOMC minutes which signaled that conditions for a lift-off in US interest rates were approaching even as officials sought a pickup in inflation, while a fast growing China economic gloom also soured investor appetite for risky assets. Snapping a two-day losing streak, the 30-share Sensex on Wednesday rallied 100.1 points or by 0.36 per cent to end at 27,931.64 as weakness in the rupee bolstered the outlook for export focused sectors such as healthcare and IT. The rupee fell to a two-year low against the greenback as worries of a worsening China slowdown and last week’s massive Yuan devaluation prompts investors to shun emerging market currencies. Fears that a further depreciation of the rupee may delay an interest rate cut by the Reserve Bank of India (RBI) which meets next on the 29th of September may also spoil the mood at Dalal Street, clouding the outlook for Asia’s third biggest economy. Heightened concerns over global economic growth may keep market participants on the edge as the US Federal Reserve prepares to raise borrowing costs for the first time since 2006 while a worsening China slowdown roils commodities and piles on the pain for the world economy. Amidst a bearish trend in Asia, coupled with weakness in the SGX CNX Nifty Index futures for August delivery which fell 0.63 per cent or 53 points at 8,453 at 10:50 am Singapore time, Dalal Street is set to open lower today.
