Pre Session- Gap up opening seen for Dalal Street; Manufacturing PMI eyed
01/02/2016
Indian equity benchmarks may witness a bullish opening on Monday as traders shift their focus to key macroeconomic data which will offer latest cues over the health of Asia’s third biggest economy. The CNX Nifty Index futures for February delivery advanced by 0.75 per cent or 57 points at 7,608 at 10:30 am Singapore time, signaling that Dalal Street may open higher today. All eyes will be fixated on January factory data with the Nikkei India Manufacturing PMI set to be released today. Manufacturing had fallen into contraction in December as the PMI tumbled to below the neutral 50-mark at 49.1 from November's 50.3. The Services PMI will be released later in the week. The focus this week will be on the RBI’s policy meet on Tuesday which may keep interest rates unchanged amidst the recent acceleration in inflation and as the central bank eyes the progress & direction of key macroeconomic parameters including the fiscal deficit in the upcoming Union Budget. The apex bank had cut borrowing costs by a total 125 bps in 2015. The monthly car sales numbers and December quarter earnings from the likes of Tech Mahindra, Indian Oil, DLF, Lupin, Tata Steel, Eicher Motor and Jet Airways will be eyed this week. Moreover, the trajectory of the rupee which may come under further pressure amidst fears of competitive devaluation of global currencies following the Bank of Japan’s surprise decision last week to adopt negative interest rates may also weigh on Dalal Street. Movement of global commodity prices, foreign investment trend and global cues may also influence sentiment at local bourses this week. The Sensex on Friday rallied by 401.12 points or by 1.64 per cent to end at 24,870.69 while the 30-share benchmark snapped a three-week losing streak, surging almost 1.8 per cent last week as traders across the globe cheered the Bank of Japan move.
Asian stocks were trading mixed with markets in China and Hong Kong succumbing to losses after underwhelming Chinese factory data which showed continued manufacturing contraction in the world’s second biggest economy, souring sentiment. China’s stocks extended the biggest monthly sell-off since the global financial crisis as the country’s official manufacturing PMI fell to a three-year low of 49.4 in January, missing analysts’ estimates of 49.6. Japan’s Nikkei 225 soared by over 1 per cent amidst last week’s surprise central bank stimulus move. Wall Street rallied on Friday as upbeat earnings from Microsoft and the Bank of Japan policy decision buoyed mood. Traders cast aside data showing a slowdown in the world’s biggest economy as Q4 GDP expanded 0.7 per cent annualized rate after a 2 per cent growth in Q3. Meanwhile, the gauge measuring US consumer confidence fell to 92 in January from 92.6 in December. The Dow Jones Industrial Average climbed 2.47 per cent; the Nasdaq Composite rose 2.38 per cent while S&P 500 advanced 2.48 per cent.
01/02/2016
Indian equity benchmarks may witness a bullish opening on Monday as traders shift their focus to key macroeconomic data which will offer latest cues over the health of Asia’s third biggest economy. The CNX Nifty Index futures for February delivery advanced by 0.75 per cent or 57 points at 7,608 at 10:30 am Singapore time, signaling that Dalal Street may open higher today. All eyes will be fixated on January factory data with the Nikkei India Manufacturing PMI set to be released today. Manufacturing had fallen into contraction in December as the PMI tumbled to below the neutral 50-mark at 49.1 from November's 50.3. The Services PMI will be released later in the week. The focus this week will be on the RBI’s policy meet on Tuesday which may keep interest rates unchanged amidst the recent acceleration in inflation and as the central bank eyes the progress & direction of key macroeconomic parameters including the fiscal deficit in the upcoming Union Budget. The apex bank had cut borrowing costs by a total 125 bps in 2015. The monthly car sales numbers and December quarter earnings from the likes of Tech Mahindra, Indian Oil, DLF, Lupin, Tata Steel, Eicher Motor and Jet Airways will be eyed this week. Moreover, the trajectory of the rupee which may come under further pressure amidst fears of competitive devaluation of global currencies following the Bank of Japan’s surprise decision last week to adopt negative interest rates may also weigh on Dalal Street. Movement of global commodity prices, foreign investment trend and global cues may also influence sentiment at local bourses this week. The Sensex on Friday rallied by 401.12 points or by 1.64 per cent to end at 24,870.69 while the 30-share benchmark snapped a three-week losing streak, surging almost 1.8 per cent last week as traders across the globe cheered the Bank of Japan move.
Asian stocks were trading mixed with markets in China and Hong Kong succumbing to losses after underwhelming Chinese factory data which showed continued manufacturing contraction in the world’s second biggest economy, souring sentiment. China’s stocks extended the biggest monthly sell-off since the global financial crisis as the country’s official manufacturing PMI fell to a three-year low of 49.4 in January, missing analysts’ estimates of 49.6. Japan’s Nikkei 225 soared by over 1 per cent amidst last week’s surprise central bank stimulus move. Wall Street rallied on Friday as upbeat earnings from Microsoft and the Bank of Japan policy decision buoyed mood. Traders cast aside data showing a slowdown in the world’s biggest economy as Q4 GDP expanded 0.7 per cent annualized rate after a 2 per cent growth in Q3. Meanwhile, the gauge measuring US consumer confidence fell to 92 in January from 92.6 in December. The Dow Jones Industrial Average climbed 2.47 per cent; the Nasdaq Composite rose 2.38 per cent while S&P 500 advanced 2.48 per cent.
