Pre Session- Sensex to open tad lower on tepid Asian cues
22/12/2015
The key domestic benchmarks are likely to witness a flattish opening, with a negative bias on Tuesday tracking a sluggish trend in markets across Asia which swung between gains and losses in thin trade even as China signaled the prospects of more stimulus to tackle a worsening economic slowdown. Softness in Asian equities coupled with slight weakness in the CNX Nifty Index futures for December delivery which fell 0.04 per cent or 3 points at 7,835.5 at 10:00 am Singapore time, signals that Dalal Street may open tad lower today. Even with the highly anticipated US Federal Reserve interest rate hike now out of the way, traders may resort to caution amidst worries over the progress of key economic reforms such as the Goods and Services Tax (GST), the possibility of which being passed in the Winter Session of Parliament that concludes on Wednesday, is quite dim, clouding the outlook for Asia’s third biggest economy, souring the appetite for risky assets. Foreign institutional investors may stay on the sidelines ahead of Christmas and New Year, weighing on trading volume at Dalal Street. Markets will be closed on Friday due to the Christmas Holiday. On Monday, the 30-share Sensex advanced by 216.68 points or by 0.85 per cent to end at 25,735.9 as the end of a prolonged period of uncertainty surrounding the US Federal Reserve’s interest rate verdict, brought relief to traders.
Asian markets were trading on a tepid note on Tuesday amidst low volume even as China appeared to press ahead with further stimulus to overcome a lingering slowdown in the world’s second biggest economy. China’s government stressed on the need to make monetary policy more “flexible” and fiscal policy more “forceful” with the country’s economy staring at the weakest pace of expansion in more than two decades this year. Traders resorted to caution ahead of the US revised Q3 GDP data which may show that the world’s biggest economy expanded by 1.9 per cent in the September quarter, compared to an earlier reported 2.1 per cent growth. China’s Shanghai Composite was trading lower, Hang Seng was unchanged and Japan’s Nikkei 225 fell as traders shied away from fresh positions ahead of a national holiday on Wednesday. Wall Street rebounded from the biggest two-day rout in three months on Monday amid value buying in the financial and technology segment, and hopes of fresh stimulus from China. The Dow Jones Industrial Average climbed 0.72 per cent, the Nasdaq Composite rose 0.93 per cent while S&P 500 advanced 0.78 per cent.
22/12/2015
The key domestic benchmarks are likely to witness a flattish opening, with a negative bias on Tuesday tracking a sluggish trend in markets across Asia which swung between gains and losses in thin trade even as China signaled the prospects of more stimulus to tackle a worsening economic slowdown. Softness in Asian equities coupled with slight weakness in the CNX Nifty Index futures for December delivery which fell 0.04 per cent or 3 points at 7,835.5 at 10:00 am Singapore time, signals that Dalal Street may open tad lower today. Even with the highly anticipated US Federal Reserve interest rate hike now out of the way, traders may resort to caution amidst worries over the progress of key economic reforms such as the Goods and Services Tax (GST), the possibility of which being passed in the Winter Session of Parliament that concludes on Wednesday, is quite dim, clouding the outlook for Asia’s third biggest economy, souring the appetite for risky assets. Foreign institutional investors may stay on the sidelines ahead of Christmas and New Year, weighing on trading volume at Dalal Street. Markets will be closed on Friday due to the Christmas Holiday. On Monday, the 30-share Sensex advanced by 216.68 points or by 0.85 per cent to end at 25,735.9 as the end of a prolonged period of uncertainty surrounding the US Federal Reserve’s interest rate verdict, brought relief to traders.
Asian markets were trading on a tepid note on Tuesday amidst low volume even as China appeared to press ahead with further stimulus to overcome a lingering slowdown in the world’s second biggest economy. China’s government stressed on the need to make monetary policy more “flexible” and fiscal policy more “forceful” with the country’s economy staring at the weakest pace of expansion in more than two decades this year. Traders resorted to caution ahead of the US revised Q3 GDP data which may show that the world’s biggest economy expanded by 1.9 per cent in the September quarter, compared to an earlier reported 2.1 per cent growth. China’s Shanghai Composite was trading lower, Hang Seng was unchanged and Japan’s Nikkei 225 fell as traders shied away from fresh positions ahead of a national holiday on Wednesday. Wall Street rebounded from the biggest two-day rout in three months on Monday amid value buying in the financial and technology segment, and hopes of fresh stimulus from China. The Dow Jones Industrial Average climbed 0.72 per cent, the Nasdaq Composite rose 0.93 per cent while S&P 500 advanced 0.78 per cent.
