Pre Session- Bearish sentiment may continue to grip D-Street
14/10/2015
The key domestic benchmarks are poised to open lower as a global stock sell-off amid weakness in China’s economy sours the appetite for equities while traders stick to a cautious approach ahead of the wholesale inflation data set for release today. India’s wholesale prices probably dropped 4.42 per cent in September 2015 from the year ago month, following a 4.95 per cent contraction in August 2015, signaling the effect of a softening global commodity price cycle. FMCG major HUL will release its September quarterly earnings report card today. On Tuesday, India’s biggest software services exporter TCS reported a 14 per cent rise in Q2 net income at Rs 6,055 crore from the year ago quarter, in line with analysts’ estimates. Against the backdrop of weakness in fellow Asian stocks amidst soft China inflation data; and caution ahead of WPI data, coupled with a bearish trend in the SGX CNX Nifty Index futures for October delivery which fell 0.23 per cent or 19 points at 8,110 at 10:30 am Singapore time, Dalal Street is set to witness a gap down opening today. On Tuesday, the 30-share Sensex marked a second straight finish in the red, falling 57.58 points or 0.20 per cent at 26,846.53 as IT stocks remained a drag following a reduction in Infosys’ dollar revenue forecasts for the ongoing fiscal while a plunge in Chinese imports caused jitters across global stock markets as the outlook for the world’s second biggest economy worsened.
Asian stocks succumbed to a sharp sell-off today after data showed that China’s consumer inflation slowed in September while producer prices remained in the grip of deflation, signaling further concerns over Asia’s biggest economy. China’s consumer inflation fell to 1.6 per cent in September 2015 from 2 per cent in August 2015 while producer prices contracted 5.9 per cent; year on year, pushing the Shanghai Composite and Hang Seng into significant loses. Japan’s Nikkei 225 sank nearly 2 per cent tracking a bearish finish at Wall Street overnight as weak import data from China signaled a worsening slowdown in the economy, the fallout of which could hurt growth prospects in other emerging markets.
14/10/2015
The key domestic benchmarks are poised to open lower as a global stock sell-off amid weakness in China’s economy sours the appetite for equities while traders stick to a cautious approach ahead of the wholesale inflation data set for release today. India’s wholesale prices probably dropped 4.42 per cent in September 2015 from the year ago month, following a 4.95 per cent contraction in August 2015, signaling the effect of a softening global commodity price cycle. FMCG major HUL will release its September quarterly earnings report card today. On Tuesday, India’s biggest software services exporter TCS reported a 14 per cent rise in Q2 net income at Rs 6,055 crore from the year ago quarter, in line with analysts’ estimates. Against the backdrop of weakness in fellow Asian stocks amidst soft China inflation data; and caution ahead of WPI data, coupled with a bearish trend in the SGX CNX Nifty Index futures for October delivery which fell 0.23 per cent or 19 points at 8,110 at 10:30 am Singapore time, Dalal Street is set to witness a gap down opening today. On Tuesday, the 30-share Sensex marked a second straight finish in the red, falling 57.58 points or 0.20 per cent at 26,846.53 as IT stocks remained a drag following a reduction in Infosys’ dollar revenue forecasts for the ongoing fiscal while a plunge in Chinese imports caused jitters across global stock markets as the outlook for the world’s second biggest economy worsened.
Asian stocks succumbed to a sharp sell-off today after data showed that China’s consumer inflation slowed in September while producer prices remained in the grip of deflation, signaling further concerns over Asia’s biggest economy. China’s consumer inflation fell to 1.6 per cent in September 2015 from 2 per cent in August 2015 while producer prices contracted 5.9 per cent; year on year, pushing the Shanghai Composite and Hang Seng into significant loses. Japan’s Nikkei 225 sank nearly 2 per cent tracking a bearish finish at Wall Street overnight as weak import data from China signaled a worsening slowdown in the economy, the fallout of which could hurt growth prospects in other emerging markets.
