Pre Session – Bears may extend grip on D-Street on Asia sell-off
30/10/2015
The key Indian equity benchmarks are likely to extend losses for a fifth straight day as a bearish trend in fellow Asian peers amid renewed speculation of a Federal Reserve December interest rate hike soured the appetite for emerging market assets. Shares of ICICI Bank, ITC and Larsen & Toubro will be in focus today as the companies unveil their September quarter earnings numbers. Caution ahead of the outcome of Bihar state polls will continue to weigh on investor sentiment at Dalal Street. Against the backdrop of subdued global cues and weakness in the CNX Nifty Index futures for November delivery which fell by 0.20 per cent at 8,114 at 09:56 am Singapore time, Dalal Street is set to open on a bearish note today. Marking a fourth straight finish in the red, the 30-share Sensex on Thursday fell 201.62 points or 0.75 per cent to end at 26,838.14 as traders rolled over their positions on the day of the expiry of the October futures & options (F&O) contracts while heightened odds of a US near-term interest rate lift-off also dampened trader mood.
Asian stocks fell as weaker than expected US Q3 GDP data failed to dampen speculation of a near-term Fed rate hike. The US economy grew at an annualized pace of 1.5 per cent in the September quarter following a 3.9 per cent rate in Q2. However, the data masked buoyant consumer and business spending while excluding the biggest inventory swing since 2011, the economy grew at a 3 per cent pace. China’s stocks fell amidst a sell-off in energy and technology companies, Hang Seng declined while Japan’s Nikkei 225 was trading lower as a stronger yen dimmed the appeal of exporter stocks while traders stayed cautious ahead of a Bank of Japan meet in which it will decide whether to boost stimulus. Wall Street ended lower on Thursday as traders weighed corporate earnings and prospects for higher US interest rates.
30/10/2015
The key Indian equity benchmarks are likely to extend losses for a fifth straight day as a bearish trend in fellow Asian peers amid renewed speculation of a Federal Reserve December interest rate hike soured the appetite for emerging market assets. Shares of ICICI Bank, ITC and Larsen & Toubro will be in focus today as the companies unveil their September quarter earnings numbers. Caution ahead of the outcome of Bihar state polls will continue to weigh on investor sentiment at Dalal Street. Against the backdrop of subdued global cues and weakness in the CNX Nifty Index futures for November delivery which fell by 0.20 per cent at 8,114 at 09:56 am Singapore time, Dalal Street is set to open on a bearish note today. Marking a fourth straight finish in the red, the 30-share Sensex on Thursday fell 201.62 points or 0.75 per cent to end at 26,838.14 as traders rolled over their positions on the day of the expiry of the October futures & options (F&O) contracts while heightened odds of a US near-term interest rate lift-off also dampened trader mood.
Asian stocks fell as weaker than expected US Q3 GDP data failed to dampen speculation of a near-term Fed rate hike. The US economy grew at an annualized pace of 1.5 per cent in the September quarter following a 3.9 per cent rate in Q2. However, the data masked buoyant consumer and business spending while excluding the biggest inventory swing since 2011, the economy grew at a 3 per cent pace. China’s stocks fell amidst a sell-off in energy and technology companies, Hang Seng declined while Japan’s Nikkei 225 was trading lower as a stronger yen dimmed the appeal of exporter stocks while traders stayed cautious ahead of a Bank of Japan meet in which it will decide whether to boost stimulus. Wall Street ended lower on Thursday as traders weighed corporate earnings and prospects for higher US interest rates.
