Pre Session- Flat opening on the cards for D-Street on mixed economic data
13/10/2015
The key domestic benchmarks are poised to witness a flattish opening today as traders weigh better than expected factory output data against acceleration in consumer inflation which may crimp room for further monetary policy easing in Asia’s third biggest economy, weighing on sentiment. While India’s industrial production rose at the quickest pace in nearly three years at 6.4 per cent, year on year in August 2015 following a revised 4.1 per cent advance in July 2015 led by robust gains in manufacturing and mining, retail inflation, the RBI’s benchmark inflation gauge picked up to 4.41 per cent in September 2015 from a record low of 3.66 per cent in August 2015, dampening the chances of another rate cut by the RBI in the near-term. The focus today will be on the Q2 earnings report card of India’s biggest software services exporter, TCS. Against the backdrop of weakness in fellow Asian stocks amidst dismal China trade data; and mixed domestic macroeconomic data, coupled with soft trade in the SGX CNX Nifty Index futures for October delivery which were up 0.06 per cent or 4 points at 8,155 at 10:32 am Singapore time, Dalal Street is set to open on a flat note today. On Monday, the 30-share Sensex had plunged 175.4 points or by 0.65 per cent to end at 26,904.11 as IT stocks fell after sector bellwether Infosys cut its dollar revenue guidance for the current fiscal. Infosys which posted a 9.8 per cent rise in Q2 net profit cut its FY 16 dollar revenue guidance to 6.4-8.4 per cent from 7.2-9.2 per cent.
Asian stocks succumbed to selling pressure with markets in mainland China and Hong Kong in the red after China’s imports plunged for the eleventh month on the trot, dropping 17.7 per cent, year on year in yuan terms in September, marking the longest losing streak in six years, while exports fell 1.1 per cent, signaling more pain for the world’s second biggest economy. Japanese markets were trading lower on reopening after a holiday. Wall Street closed higher on Monday as traders awaited key economic data including retail sales, and corporate earnings numbers, which will offer further cues over the health of the world’s biggest economy.
13/10/2015
The key domestic benchmarks are poised to witness a flattish opening today as traders weigh better than expected factory output data against acceleration in consumer inflation which may crimp room for further monetary policy easing in Asia’s third biggest economy, weighing on sentiment. While India’s industrial production rose at the quickest pace in nearly three years at 6.4 per cent, year on year in August 2015 following a revised 4.1 per cent advance in July 2015 led by robust gains in manufacturing and mining, retail inflation, the RBI’s benchmark inflation gauge picked up to 4.41 per cent in September 2015 from a record low of 3.66 per cent in August 2015, dampening the chances of another rate cut by the RBI in the near-term. The focus today will be on the Q2 earnings report card of India’s biggest software services exporter, TCS. Against the backdrop of weakness in fellow Asian stocks amidst dismal China trade data; and mixed domestic macroeconomic data, coupled with soft trade in the SGX CNX Nifty Index futures for October delivery which were up 0.06 per cent or 4 points at 8,155 at 10:32 am Singapore time, Dalal Street is set to open on a flat note today. On Monday, the 30-share Sensex had plunged 175.4 points or by 0.65 per cent to end at 26,904.11 as IT stocks fell after sector bellwether Infosys cut its dollar revenue guidance for the current fiscal. Infosys which posted a 9.8 per cent rise in Q2 net profit cut its FY 16 dollar revenue guidance to 6.4-8.4 per cent from 7.2-9.2 per cent.
Asian stocks succumbed to selling pressure with markets in mainland China and Hong Kong in the red after China’s imports plunged for the eleventh month on the trot, dropping 17.7 per cent, year on year in yuan terms in September, marking the longest losing streak in six years, while exports fell 1.1 per cent, signaling more pain for the world’s second biggest economy. Japanese markets were trading lower on reopening after a holiday. Wall Street closed higher on Monday as traders awaited key economic data including retail sales, and corporate earnings numbers, which will offer further cues over the health of the world’s biggest economy.
