Pre Session- Dalal Street set to extend rally on China stimulus
26/10/2015
The key domestic benchmarks are poised to witness a bullish opening today as markets across the globe cheer China’s decision to cut interest rates to boost growth in the world’s second biggest economy, bolstering the appetite for risky assets. The People’s Bank of China on Friday cut interest rates for a sixth time in a year as the key lending rate was slashed by 25 basis points while the reserve requirement ratio was cut by 50 basis points. The rate cut by China is expected to spur capital inflows into emerging markets. Against the backdrop of positive cues from Asian markets and a bullish finish at Wall Street on Friday, coupled with strength in the CNX Nifty Index futures for October delivery which rallied by 0.51 per cent or 43 points at 8,358 at 10:32 am Singapore time, Dalal Street is set to open higher today. All eyes will be on the Q2 report cards of mobile phone operating giant Bharti Airtel and mortgage lender HDFC, set to be unveiled today. In the week ahead, Axis Bank, Lupin, Maruti Suzuki, NTPC, Ambuja Cements and Vedanta are scheduled to unveil their Q2 earnings numbers. Markets may witness some volatility this week as traders roll over their positions ahead of the October futures and options (F&O) contracts expiry on Thursday, October 29, 2015. Globally, all eyes will be centered on the US Federal Reserve’s two-day meet on October 25-26 in which the world’s top central bank may offer some cues over when it plans to raise interest rates for the first time in almost a decade. Marking a fourth straight weekly rally, the 30-share Sensex advanced 183.15 points or by 0.67 per cent on Friday to end at 27,470.81 as investors gave thumbs up to the ECB’s signal of a stimulus boost in the near-term to buoy the 19-member Euro area economy.
Asian stocks rose after China late Friday surprised traders by cutting interest rates and lowering the amount lenders must set aside as reserves, in a bid to help stem a slowdown in Asia’s biggest economy. China’s Shanghai Composite rose to a two-month high as traders looked ahead to the Communist Party meet where Chinese policymakers are expected to map out a five-year plan for the country’s economy. Hang Seng was trading higher following the China rate cut move while Japan’s Nikkei 225 soared by over 1 per cent amid speculation that the Bank of Japan may boost stimulus this week. Global central bank stimulus and gains in technology shares amidst robust September quarter earnings helped Wall Street mark its fourth straight weekly rally on Friday with the Nasdaq Composite surging by 2.27 per cent and the S&P 500 soaring 1.10 per cent.
26/10/2015
The key domestic benchmarks are poised to witness a bullish opening today as markets across the globe cheer China’s decision to cut interest rates to boost growth in the world’s second biggest economy, bolstering the appetite for risky assets. The People’s Bank of China on Friday cut interest rates for a sixth time in a year as the key lending rate was slashed by 25 basis points while the reserve requirement ratio was cut by 50 basis points. The rate cut by China is expected to spur capital inflows into emerging markets. Against the backdrop of positive cues from Asian markets and a bullish finish at Wall Street on Friday, coupled with strength in the CNX Nifty Index futures for October delivery which rallied by 0.51 per cent or 43 points at 8,358 at 10:32 am Singapore time, Dalal Street is set to open higher today. All eyes will be on the Q2 report cards of mobile phone operating giant Bharti Airtel and mortgage lender HDFC, set to be unveiled today. In the week ahead, Axis Bank, Lupin, Maruti Suzuki, NTPC, Ambuja Cements and Vedanta are scheduled to unveil their Q2 earnings numbers. Markets may witness some volatility this week as traders roll over their positions ahead of the October futures and options (F&O) contracts expiry on Thursday, October 29, 2015. Globally, all eyes will be centered on the US Federal Reserve’s two-day meet on October 25-26 in which the world’s top central bank may offer some cues over when it plans to raise interest rates for the first time in almost a decade. Marking a fourth straight weekly rally, the 30-share Sensex advanced 183.15 points or by 0.67 per cent on Friday to end at 27,470.81 as investors gave thumbs up to the ECB’s signal of a stimulus boost in the near-term to buoy the 19-member Euro area economy.
Asian stocks rose after China late Friday surprised traders by cutting interest rates and lowering the amount lenders must set aside as reserves, in a bid to help stem a slowdown in Asia’s biggest economy. China’s Shanghai Composite rose to a two-month high as traders looked ahead to the Communist Party meet where Chinese policymakers are expected to map out a five-year plan for the country’s economy. Hang Seng was trading higher following the China rate cut move while Japan’s Nikkei 225 soared by over 1 per cent amid speculation that the Bank of Japan may boost stimulus this week. Global central bank stimulus and gains in technology shares amidst robust September quarter earnings helped Wall Street mark its fourth straight weekly rally on Friday with the Nasdaq Composite surging by 2.27 per cent and the S&P 500 soaring 1.10 per cent.
