Pre Session- Gap up opening seen for Sensex even as global rout continues
02/09/2015
Indian equity benchmarks may snap a two-day losing streak on Wednesday as the sharp losses in recent sessions offer traders good bargain buying opportunity, in stocks, at existing levels while tepid growth and factory data that signaled underlying softness in Asia’s third biggest economy bolsters the case for another interest rate cut by the Reserve Bank of India (RBI) at its upcoming monetary policy meet at the end of September. Marking a second straight session in the red, the 30-share Sensex slid by 586.65 points or by 2.23 per cent to end at 25,696.44 on Tuesday as Q1 FY 2015-16 GDP growth slipped to 7 per cent, year on year from March quarter’s 7.5 per cent, while a worsening rout in global stocks with China’s manufacturing hitting a three-year low in August also soured sentiment. Meanwhile, India’s manufacturing activity expanded at a slower pace in August with the PMI falling to 52.3 in August from July’s six-month high of 52.7, as production and demand softened, offering further evidence of an economic slowdown, and calling for the need of reduction in policy rates from the country’s central bank. Strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.42 per cent or 32.50 points at 7,822 at 10:32 am Singapore time, Dalal Street is set for a gap up opening today. However, a worsening slump in global stocks with markets in China treading water following a bearish finish at Wall Street overnight as weak US factory data exacerbated concerns over global economic growth may weigh on domestic sentiment, trimming gains at Dalal Street.
Most Asian stocks extended a decline with stocks in mainland China tumbling nearly 3 per cent on worries that the government measures to boost beaten down equities may fail as the slowdown deepens in the world’s second biggest economy. China’s official factory gauge contracted at the fastest pace in three years last month while a private manufacturing gauge showed the steepest decline in more than six years. Hang Seng shed more than 1 per cent but Japan’s Nikkei 225 advanced following yesterday’s steep losses. The weakest pace of US factory expansion since May 2013 in August 2015 signaled renewed worries over the health of the world’s biggest economy, pushing Wall Street into deep Bear terrain on Tuesday, with all three of the Dow Industrials, Nasdaq Composite and S&P 500 sinking nearly 3 per cent, each.
02/09/2015
Indian equity benchmarks may snap a two-day losing streak on Wednesday as the sharp losses in recent sessions offer traders good bargain buying opportunity, in stocks, at existing levels while tepid growth and factory data that signaled underlying softness in Asia’s third biggest economy bolsters the case for another interest rate cut by the Reserve Bank of India (RBI) at its upcoming monetary policy meet at the end of September. Marking a second straight session in the red, the 30-share Sensex slid by 586.65 points or by 2.23 per cent to end at 25,696.44 on Tuesday as Q1 FY 2015-16 GDP growth slipped to 7 per cent, year on year from March quarter’s 7.5 per cent, while a worsening rout in global stocks with China’s manufacturing hitting a three-year low in August also soured sentiment. Meanwhile, India’s manufacturing activity expanded at a slower pace in August with the PMI falling to 52.3 in August from July’s six-month high of 52.7, as production and demand softened, offering further evidence of an economic slowdown, and calling for the need of reduction in policy rates from the country’s central bank. Strength in the SGX CNX Nifty Index futures for September delivery which climbed by 0.42 per cent or 32.50 points at 7,822 at 10:32 am Singapore time, Dalal Street is set for a gap up opening today. However, a worsening slump in global stocks with markets in China treading water following a bearish finish at Wall Street overnight as weak US factory data exacerbated concerns over global economic growth may weigh on domestic sentiment, trimming gains at Dalal Street.
Most Asian stocks extended a decline with stocks in mainland China tumbling nearly 3 per cent on worries that the government measures to boost beaten down equities may fail as the slowdown deepens in the world’s second biggest economy. China’s official factory gauge contracted at the fastest pace in three years last month while a private manufacturing gauge showed the steepest decline in more than six years. Hang Seng shed more than 1 per cent but Japan’s Nikkei 225 advanced following yesterday’s steep losses. The weakest pace of US factory expansion since May 2013 in August 2015 signaled renewed worries over the health of the world’s biggest economy, pushing Wall Street into deep Bear terrain on Tuesday, with all three of the Dow Industrials, Nasdaq Composite and S&P 500 sinking nearly 3 per cent, each.
