Pre Session- Gap down opening seen at D-Street ahead of F&O expiry
29/10/2015
The key Indian equity benchmarks are set to open lower today as traders stay cautious ahead of the expiry of the October derivative contracts while speculation of near-term US Federal Reserve policy tightening may also sour the appetite for risky emerging market assets. Volatility may remain high as traders roll over their positions on the last day of the October futures & options (F&O) contracts. The Fed on Wednesday signaled that it is getting ready to move to raise interest rates for the first time in almost a decade, and could do so as early as December as it pinned its hopes on further job gains to boost inflation towards targeted levels. While a hike in US interest rates may make emerging market assets less attractive, it will put an end to the prolonged period of investor uncertainty surrounding the timing of US rate tightening, which will be positive for markets. Investors are also treading a cautious path as they eye the outcome of the Bihar state polls due in the first week of November, with a BJP win likely to be positive for the market. Among the companies due to unveil their September quarter earnings today include NTPC and Dr Reddy’s Laboratories. Against the backdrop of bearish cues from most Asian markets and weakness in the CNX Nifty Index futures for October delivery which fell by 0.38 per cent or 31 points at 8,148 at 10:44 am Singapore time, Dalal Street is set to open on a bearish note today. Marking a third straight finish in the red, the 30-share Sensex fell 213.68 points or by 0.78 per cent to end at 27,039.76 on Wednesday as caution ahead of derivative expiry and FOMC decision weighed on sentiment.
Most Asian stocks were trading lower as the Fed said that it is prepared to raise borrowing costs as soon as December. China’s Shanghai Composite eked out modest gains before the conclusion of a high level Communist Party meeting while Hang Seng fell and Japan’s Nikkei 225 was trading with slim losses as traders stayed cautious ahead of the Bank of Japan monetary decision on Friday. Wall Street surged on Wednesday as financial shares rallied following the Fed’s signal that it may move as early as December and raise interest rates, which underscored confidence in the world’s biggest economy. Each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallied over 1 per cent.
29/10/2015
The key Indian equity benchmarks are set to open lower today as traders stay cautious ahead of the expiry of the October derivative contracts while speculation of near-term US Federal Reserve policy tightening may also sour the appetite for risky emerging market assets. Volatility may remain high as traders roll over their positions on the last day of the October futures & options (F&O) contracts. The Fed on Wednesday signaled that it is getting ready to move to raise interest rates for the first time in almost a decade, and could do so as early as December as it pinned its hopes on further job gains to boost inflation towards targeted levels. While a hike in US interest rates may make emerging market assets less attractive, it will put an end to the prolonged period of investor uncertainty surrounding the timing of US rate tightening, which will be positive for markets. Investors are also treading a cautious path as they eye the outcome of the Bihar state polls due in the first week of November, with a BJP win likely to be positive for the market. Among the companies due to unveil their September quarter earnings today include NTPC and Dr Reddy’s Laboratories. Against the backdrop of bearish cues from most Asian markets and weakness in the CNX Nifty Index futures for October delivery which fell by 0.38 per cent or 31 points at 8,148 at 10:44 am Singapore time, Dalal Street is set to open on a bearish note today. Marking a third straight finish in the red, the 30-share Sensex fell 213.68 points or by 0.78 per cent to end at 27,039.76 on Wednesday as caution ahead of derivative expiry and FOMC decision weighed on sentiment.
Most Asian stocks were trading lower as the Fed said that it is prepared to raise borrowing costs as soon as December. China’s Shanghai Composite eked out modest gains before the conclusion of a high level Communist Party meeting while Hang Seng fell and Japan’s Nikkei 225 was trading with slim losses as traders stayed cautious ahead of the Bank of Japan monetary decision on Friday. Wall Street surged on Wednesday as financial shares rallied following the Fed’s signal that it may move as early as December and raise interest rates, which underscored confidence in the world’s biggest economy. Each of the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 rallied over 1 per cent.
