Pre Session: Markets seen opening lower on Fed rate hike jitters
15/12/2015
The Indian equity markets may see gap down opening on Tuesday amidst heightened investor anxiety ahead of the US Federal Reserve’s two-day monetary policy meet beginning on Tuesday, in which the world’s biggest central bank is poised to raise interest rates for the first time in almost a decade. A hike in US interest rates from near zero levels may make emerging market assets relatively less attractive, raising fears over a capital flight from EMs. The CNX Nifty Index futures for December delivery slumped 50.50 points at 7,570 at 10:24 am Singapore time, signaling a gap down opening for Dalal Street on Tuesday as weak global cues coupled with fears over a delay in the GST reform as the Winter Session of Parliament heads for another washout amidst opposition protests, sour investor mood. India’s consumer inflation spiked to a fourteen-month high of 5.41 per cent in November 2015 from October’s 5 per cent, thereby limiting near-term policy easing room for the RBI, may also weigh on Dalal Street. On Monday, the Bombay Stock Exchange bellwether Sensex closed at 25150.35 up by 105.92 points or by 0.42 per cent, while the NSE Nifty closed at 7650.05 points, trading higher by 39.6 points or by 0.52 per cent on account of buying in front line blue chip companies.
Most Asian stocks, outside Japan, steadied in cautious trade on Tuesday, after oil rebounded and before the US Federal Reserve starts a two-day meeting today. China’s Shanghai Composite added modest gains as the country’s industrial output, retail sales and fixed-asset investment numbers for November, came in better-than-expected, easing concerns over a slowdown in the world’s second biggest economy. Hang Seng were also trading in green, while Japan’s Nikkei 225 extended losing streak on Tuesday. Wall Street ended higher in overnight trade, making its first gain in more than a week, as investors remained focus to a widely anticipated US interest rate increase by the Federal Reserve later this week.
15/12/2015
The Indian equity markets may see gap down opening on Tuesday amidst heightened investor anxiety ahead of the US Federal Reserve’s two-day monetary policy meet beginning on Tuesday, in which the world’s biggest central bank is poised to raise interest rates for the first time in almost a decade. A hike in US interest rates from near zero levels may make emerging market assets relatively less attractive, raising fears over a capital flight from EMs. The CNX Nifty Index futures for December delivery slumped 50.50 points at 7,570 at 10:24 am Singapore time, signaling a gap down opening for Dalal Street on Tuesday as weak global cues coupled with fears over a delay in the GST reform as the Winter Session of Parliament heads for another washout amidst opposition protests, sour investor mood. India’s consumer inflation spiked to a fourteen-month high of 5.41 per cent in November 2015 from October’s 5 per cent, thereby limiting near-term policy easing room for the RBI, may also weigh on Dalal Street. On Monday, the Bombay Stock Exchange bellwether Sensex closed at 25150.35 up by 105.92 points or by 0.42 per cent, while the NSE Nifty closed at 7650.05 points, trading higher by 39.6 points or by 0.52 per cent on account of buying in front line blue chip companies.
Most Asian stocks, outside Japan, steadied in cautious trade on Tuesday, after oil rebounded and before the US Federal Reserve starts a two-day meeting today. China’s Shanghai Composite added modest gains as the country’s industrial output, retail sales and fixed-asset investment numbers for November, came in better-than-expected, easing concerns over a slowdown in the world’s second biggest economy. Hang Seng were also trading in green, while Japan’s Nikkei 225 extended losing streak on Tuesday. Wall Street ended higher in overnight trade, making its first gain in more than a week, as investors remained focus to a widely anticipated US interest rate increase by the Federal Reserve later this week.