Pre Session: Market seen opening lower; Sept F&O expiry eyed
24/09/2015
Indian equity benchmarks are expected to open on weak note on Thursday amidst caution ahead of the expiry of the September Futures & Options (F&O) contracts today while a bearish trend in fellow Asian peers amid fears of a worsening China slowdown sours risk taking appetite. China’s manufacturing PMI shrank, at the fastest pace in more than six in September, to 47 in September from 47.3 in August, below the mark of 50 which separates expansion from contraction. Against the backdrop of a slump in Asian stocks and a bearish finish at Wall Street overnight, coupled with weakness in the SGX CNX Nifty Index futures for September delivery, Dalal Street is set for a gap down opening today. Snapping two-days losing streak, the Indian equities rebounded strongly in final hour trade on Wednesday amid selective buying in blue-chip stocks which had been hit hard in the last few sessions. The 30-share BSE SENSEX closed at 25822.99, up by 171.15 points or by 0.67 per cent and the NSE Nifty ended 33.95 points higher at 7845.95. Volatility may continue to remain high at domestic bourses as traders roll over their positions ahead of the September derivative expiry today. On the global front, most of the Asian stocks tumbled as China’s manufacturing activity shrank at the fastest pace in more than six and a half years in September, signaling a worsening slowdown in the world’s second biggest economy. Japanese shares, which opened after a three-day holiday, declined over 2 per cent, weighed down by losses in energy and material stocks. Hang Seng fell over 0.5 per cent on fear over China slowdown. China’s manufacturing PMI fell to 47 in September from 47.3 in August, below the mark of 50 which separates expansion from contraction, a private survey showed on Wednesday. The sub-index measuring factory production, new orders, new export orders and employment in the Chinese manufacturing sector all contracted in the month of September, and that too at a sharper rate than in August, signaling the bleak conditions faced by the country’s manufacturers gripped by deflation, overcapacity issues and weak external demand. The latest data raises fears that China’s economy may fail to meet the 7 per cent official growth target for 2015.
In the overnight trade, Wall Street ended on bearish note with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 finished lower after a data showed that Chinese factory activity slowed in more than six years. Triggered by weak Chinese data, US-listed Chinese firms Alibaba and Baidu tumbled 3 per cent.
24/09/2015
Indian equity benchmarks are expected to open on weak note on Thursday amidst caution ahead of the expiry of the September Futures & Options (F&O) contracts today while a bearish trend in fellow Asian peers amid fears of a worsening China slowdown sours risk taking appetite. China’s manufacturing PMI shrank, at the fastest pace in more than six in September, to 47 in September from 47.3 in August, below the mark of 50 which separates expansion from contraction. Against the backdrop of a slump in Asian stocks and a bearish finish at Wall Street overnight, coupled with weakness in the SGX CNX Nifty Index futures for September delivery, Dalal Street is set for a gap down opening today. Snapping two-days losing streak, the Indian equities rebounded strongly in final hour trade on Wednesday amid selective buying in blue-chip stocks which had been hit hard in the last few sessions. The 30-share BSE SENSEX closed at 25822.99, up by 171.15 points or by 0.67 per cent and the NSE Nifty ended 33.95 points higher at 7845.95. Volatility may continue to remain high at domestic bourses as traders roll over their positions ahead of the September derivative expiry today. On the global front, most of the Asian stocks tumbled as China’s manufacturing activity shrank at the fastest pace in more than six and a half years in September, signaling a worsening slowdown in the world’s second biggest economy. Japanese shares, which opened after a three-day holiday, declined over 2 per cent, weighed down by losses in energy and material stocks. Hang Seng fell over 0.5 per cent on fear over China slowdown. China’s manufacturing PMI fell to 47 in September from 47.3 in August, below the mark of 50 which separates expansion from contraction, a private survey showed on Wednesday. The sub-index measuring factory production, new orders, new export orders and employment in the Chinese manufacturing sector all contracted in the month of September, and that too at a sharper rate than in August, signaling the bleak conditions faced by the country’s manufacturers gripped by deflation, overcapacity issues and weak external demand. The latest data raises fears that China’s economy may fail to meet the 7 per cent official growth target for 2015.
In the overnight trade, Wall Street ended on bearish note with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 finished lower after a data showed that Chinese factory activity slowed in more than six years. Triggered by weak Chinese data, US-listed Chinese firms Alibaba and Baidu tumbled 3 per cent.
