Pre Session- Tepid opening on the cards for D-Street ahead of Bihar poll results
05/11/2015
The key Indian equity benchmarks are poised to witness a soft opening on Thursday as traders resort to a cautious stance ahead of the outcome of the state elections in Bihar. The final stage of polling in the five-phase Bihar vote closes on Thursday, with all eyes now on the results due on November 8, Sunday. A win for the BJP party could help Narendra Modi’s efforts to control the Upper House of Parliament and get key economic reforms bills such as GST and Land Acquisition passed, while giving Modi an edge in about a dozen more state polls scheduled through 2017. Tata Steel and Cipla will be in focus today as the companies unveil their September quarter earnings numbers. The Sensex may also feel some pressure from Fed Chair Janet Yellen’s remarks overnight in which she signaled that a December interest rate hike was a “live possibility”, weighing on emerging market assets which will become less attractive amidst higher US interest rates. The CNX Nifty Index futures for November delivery fell by 0.07 per cent or 6 points at 8,060 at 10:29 am Singapore time, a sign that Dalal Street is set to open on a cautious note today. Marking the lowest closing in a month, the 30-share Sensex on Wednesday declined 37.67 points or by 0.14 per cent to end at 26,552.92 as investors seemed jittery ahead of the Bihar state election results.
Major Asian stocks rallied today even amidst heightened speculation of a US interest rate lift-off next month after Federal Reserve Chair Janet Yellen signaled that borrowing costs may be raised before the year ends. China’s Shanghai Composite soared by over 1.7 per cent as traders gave thumbs up to policymakers’ five-year plan to bolster the world’s second biggest economy. China’s President Xi Jinping stressed that the country must achieve an annual growth rate of at least 6.5 per cent over the next five years as it aims to double the 2010 GDP and per capita income by 2020. Meanwhile, shares in Hong Kong rose amidst speculation of a start of a trading link between Shenzhen and Hong Kong. Japan’s Nikkei 225 rallied over 1 per cent as a weaker yen bolstered the appeal of exporter stocks. Wall Street closed on a bearish note on Wednesday as payrolls data and remarks from the Fed Chair Janet Yellen signaled that the world’s top central bank is getting closer to lifting interest rates for the first time in almost a decade. Private payrolls in the US climbed 182,000 in October, following a revised 190,000 in September, and beating forecasts for an 180,000 gain, signaling a strengthening US labour market recovery that bolstered the case for policy tightening. Yellen said that an improvement in the US economic recovery has pushed the case for a potential rate hike next month.
05/11/2015
The key Indian equity benchmarks are poised to witness a soft opening on Thursday as traders resort to a cautious stance ahead of the outcome of the state elections in Bihar. The final stage of polling in the five-phase Bihar vote closes on Thursday, with all eyes now on the results due on November 8, Sunday. A win for the BJP party could help Narendra Modi’s efforts to control the Upper House of Parliament and get key economic reforms bills such as GST and Land Acquisition passed, while giving Modi an edge in about a dozen more state polls scheduled through 2017. Tata Steel and Cipla will be in focus today as the companies unveil their September quarter earnings numbers. The Sensex may also feel some pressure from Fed Chair Janet Yellen’s remarks overnight in which she signaled that a December interest rate hike was a “live possibility”, weighing on emerging market assets which will become less attractive amidst higher US interest rates. The CNX Nifty Index futures for November delivery fell by 0.07 per cent or 6 points at 8,060 at 10:29 am Singapore time, a sign that Dalal Street is set to open on a cautious note today. Marking the lowest closing in a month, the 30-share Sensex on Wednesday declined 37.67 points or by 0.14 per cent to end at 26,552.92 as investors seemed jittery ahead of the Bihar state election results.
Major Asian stocks rallied today even amidst heightened speculation of a US interest rate lift-off next month after Federal Reserve Chair Janet Yellen signaled that borrowing costs may be raised before the year ends. China’s Shanghai Composite soared by over 1.7 per cent as traders gave thumbs up to policymakers’ five-year plan to bolster the world’s second biggest economy. China’s President Xi Jinping stressed that the country must achieve an annual growth rate of at least 6.5 per cent over the next five years as it aims to double the 2010 GDP and per capita income by 2020. Meanwhile, shares in Hong Kong rose amidst speculation of a start of a trading link between Shenzhen and Hong Kong. Japan’s Nikkei 225 rallied over 1 per cent as a weaker yen bolstered the appeal of exporter stocks. Wall Street closed on a bearish note on Wednesday as payrolls data and remarks from the Fed Chair Janet Yellen signaled that the world’s top central bank is getting closer to lifting interest rates for the first time in almost a decade. Private payrolls in the US climbed 182,000 in October, following a revised 190,000 in September, and beating forecasts for an 180,000 gain, signaling a strengthening US labour market recovery that bolstered the case for policy tightening. Yellen said that an improvement in the US economic recovery has pushed the case for a potential rate hike next month.
