Pre Session- Positive opening likely for Sensex; CPI data eyed
14/09/2015
The key domestic benchmarks are poised to open higher today as robust factory data signals a firm recovery in Asia’s third biggest economy, bolstering the appetite for risky assets. Indian industrial output climbed 4.2 per cent, year on year in July 2015 amidst a pickup in the manufacturing especially capital goods sector, up from an annual 0.9 per cent rise in July 2014, and compared to a revised 4.4 per cent expansion in June 2015. Traders will eye the consumer price and wholesale price inflation data set for release on Monday, with analysts expecting consumer price inflation to retreat to a record low of 3.6 per cent in August 2015 from 3.78 per cent in July 2015, opening the door for an interest rate cut by the RBI on September 29, 2015. However, mixed cues from fellow Asian peers amidst jitters ahead of the US Federal Reserve’s two-day monetary policy meet on September 16-17 may limit gains at Dalal Street as the world’s top central bank considers the timing to bring down the curtains on its zero interest rate policy. The SGX CNX Nifty Index futures for September delivery climbed by 0.37 per cent or 28.5 points at 7,808 at 10:32 am Singapore time, signaling a gap up opening for Dalal Street today. Marking a second straight session in the red, the 30-share Sensex on Friday declined by 11.96 points or by 0.05 per cent at 25,610.21 as traders stuck to the sidelines ahead of the FOMC policy meet and key macro economic data.
Asian stocks were trading mixed as tepid China data underscored concerns over the health of the world’s second biggest economy while focus returned to the timing of a maiden US interest rate hike since 2006, with the Fed set to kick-off a two-day meet on Tuesday. China’s industrial output advanced 6.1 per cent in August 2015, year on year, trailing estimates of 6.5 per cent while urban fixed-asset investment, a key growth driver, expanded at the slowest pace in 15 years, at 10.9 per cent, year on year in the January-August 2015 period. Hang Seng advanced on hopes of fresh China stimulus while Japan’s Nikkei 225 fell as traders cut risky bets ahead of tomorrow’s Fed meet. On Friday, Wall Street closed on a bullish note with S&P 500 marking its best week since July as dismal consumer data pushed back bets of US policy tightening. The gauge measuring US consumer sentiment tumbled to the lowest level in a year at 85.7 this month from 91.9 in August against the backdrop of turmoil in global financial markets.
14/09/2015
The key domestic benchmarks are poised to open higher today as robust factory data signals a firm recovery in Asia’s third biggest economy, bolstering the appetite for risky assets. Indian industrial output climbed 4.2 per cent, year on year in July 2015 amidst a pickup in the manufacturing especially capital goods sector, up from an annual 0.9 per cent rise in July 2014, and compared to a revised 4.4 per cent expansion in June 2015. Traders will eye the consumer price and wholesale price inflation data set for release on Monday, with analysts expecting consumer price inflation to retreat to a record low of 3.6 per cent in August 2015 from 3.78 per cent in July 2015, opening the door for an interest rate cut by the RBI on September 29, 2015. However, mixed cues from fellow Asian peers amidst jitters ahead of the US Federal Reserve’s two-day monetary policy meet on September 16-17 may limit gains at Dalal Street as the world’s top central bank considers the timing to bring down the curtains on its zero interest rate policy. The SGX CNX Nifty Index futures for September delivery climbed by 0.37 per cent or 28.5 points at 7,808 at 10:32 am Singapore time, signaling a gap up opening for Dalal Street today. Marking a second straight session in the red, the 30-share Sensex on Friday declined by 11.96 points or by 0.05 per cent at 25,610.21 as traders stuck to the sidelines ahead of the FOMC policy meet and key macro economic data.
Asian stocks were trading mixed as tepid China data underscored concerns over the health of the world’s second biggest economy while focus returned to the timing of a maiden US interest rate hike since 2006, with the Fed set to kick-off a two-day meet on Tuesday. China’s industrial output advanced 6.1 per cent in August 2015, year on year, trailing estimates of 6.5 per cent while urban fixed-asset investment, a key growth driver, expanded at the slowest pace in 15 years, at 10.9 per cent, year on year in the January-August 2015 period. Hang Seng advanced on hopes of fresh China stimulus while Japan’s Nikkei 225 fell as traders cut risky bets ahead of tomorrow’s Fed meet. On Friday, Wall Street closed on a bullish note with S&P 500 marking its best week since July as dismal consumer data pushed back bets of US policy tightening. The gauge measuring US consumer sentiment tumbled to the lowest level in a year at 85.7 this month from 91.9 in August against the backdrop of turmoil in global financial markets.
