Pre Session- Dalal Street may remain in grip of Bears on global sell-off
23/09/2015
Indian equity benchmarks are poised to extend a two-day sell-off on Wednesday amidst caution ahead of the expiry of the September Futures & Options (F&O) contracts tomorrow while a bearish trend in fellow Asian peers amid fears of a worsening China slowdown sours risk taking appetite. The Asian Development Bank’s (ADB) warning that weak growth in China in 2015 is likely to cause a slowdown in the rest of Asia may hamstring sentiment, with the ADB cutting the growth forecast for the Indian economy in 2015-16 to 7.4 per cent from 7.8 per cent earlier. 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 which plunged by 0.94 per cent or 72.5 points at 7,700.50 at 10:40 am Singapore time, Dalal Street is set for a gap down opening today. Marking a second straight session in the red, the 30-share Sensex on Tuesday tanked 541.14 points or 2.07 per cent to end at 25,651.84 amidst a slump in European equities due to German carmaker Volkswagen’s emission scandal. Volatility may continue to remain high at domestic bourses as traders roll over their positions ahead of the September derivative expiry on Thursday.
Asian stocks tumbled as China’s manufacturing data signaled a worsening slowdown in the world’s second biggest economy. China’s Shanghai Composite succumbed to a renewed sell-off while Hang Seng crashed by over 2 per cent after a report showed that China’s manufacturing shrank at the fastest pace in more than six and a half years with the PMI falling to 47 in September from 47.3 in August, well below the neutral mark of 50. Japanese markets remained closed today due to a holiday. Wall Street succumbed to a steep sell-off on Tuesday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 shedding more than 1 per cent each as Volkswagen’s diesel -emissions cheating scandal took heavy toll on global auto stocks with traders fearing an industry fallout while uncertainty surrounding the full extent of a China slowdown and timing of a Fed rate hike also sapped the lure for risky assets.
23/09/2015
Indian equity benchmarks are poised to extend a two-day sell-off on Wednesday amidst caution ahead of the expiry of the September Futures & Options (F&O) contracts tomorrow while a bearish trend in fellow Asian peers amid fears of a worsening China slowdown sours risk taking appetite. The Asian Development Bank’s (ADB) warning that weak growth in China in 2015 is likely to cause a slowdown in the rest of Asia may hamstring sentiment, with the ADB cutting the growth forecast for the Indian economy in 2015-16 to 7.4 per cent from 7.8 per cent earlier. 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 which plunged by 0.94 per cent or 72.5 points at 7,700.50 at 10:40 am Singapore time, Dalal Street is set for a gap down opening today. Marking a second straight session in the red, the 30-share Sensex on Tuesday tanked 541.14 points or 2.07 per cent to end at 25,651.84 amidst a slump in European equities due to German carmaker Volkswagen’s emission scandal. Volatility may continue to remain high at domestic bourses as traders roll over their positions ahead of the September derivative expiry on Thursday.
Asian stocks tumbled as China’s manufacturing data signaled a worsening slowdown in the world’s second biggest economy. China’s Shanghai Composite succumbed to a renewed sell-off while Hang Seng crashed by over 2 per cent after a report showed that China’s manufacturing shrank at the fastest pace in more than six and a half years with the PMI falling to 47 in September from 47.3 in August, well below the neutral mark of 50. Japanese markets remained closed today due to a holiday. Wall Street succumbed to a steep sell-off on Tuesday with all three of the Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 shedding more than 1 per cent each as Volkswagen’s diesel -emissions cheating scandal took heavy toll on global auto stocks with traders fearing an industry fallout while uncertainty surrounding the full extent of a China slowdown and timing of a Fed rate hike also sapped the lure for risky assets.
