Pre Session-Sensex may open higher as F&O expiry eyed
28/01/2016
Indian equity benchmarks are tipped to witness a positive opening on Thursday ahead of the January derivatives expiry. Gains across most markets in Asia may support sentiment at Dalal Street as the US Federal Reserve which left interest rates unchanged on Wednesday, signaled that it will continue to undertake a gradual approach in tightening borrowing costs further in the world’s biggest economy amidst heightened global headwinds, bolstering the lure for risky assets. The FOMC acknowledged that it is keeping a close watch on developments from China to Europe, and on the movement of oil prices, to gauge any possible adverse impact on the US economy. Strength in the CNX Nifty Index futures for January delivery which advanced by 0.32 per cent or 23.5 points at 7,455 at 10:33 am Singapore time signals a gap up opening for Dalal Street today. Volatility may remain high at the domestic bourses as traders roll over their positions ahead of the January futures and options (F&O) contract expiry on Thursday. Traders will focus on the Q3 earnings numbers of index heavyweights Bharti Airtel, ICICI Bank, Maruti Suzuki and Glenmark Pharmaceuticals to be unveiled today. The 30-share Sensex on Wednesday closed tad higher, up by 6.44 points or by 0.03 per cent to end at 24,492.39 as investors weighed S&P’s comments which signaled limited external risks to Asia’s third biggest economy which is mainly consumption driven, while caution ahead of F&O expiry restricted gains.
Most Asian stocks climbed today after the Fed said that it is likely to stick to a measured pace of policy tightening while stressing that policymakers are closely watching international developments and their possible impact on US economic outlook. However, China’s Shanghai Composite fell even as the People’s Bank of China injected 340 billion Yuan into the country’s financial system via reverse repurchase agreements. Hang Seng climbed and Japan’s Nikkei 225 advanced as traders eyed the outcome of the Bank of Japan’s policy meet in which it may maintain stimulus to support the world’s third biggest economy. Wall Street succumbed to a steep sell-off on Wednesday as traders seemed unimpressed with the Fed statement while heavyweights such as Apple and Boeing sank after paring their outlooks. Traders cast aside robust US housing data as sales of new homes surged 10.8 per cent to the highest level in ten months at a 544,000 annual pace in December 2015. The Dow Jones Industrial Average shed 1.38 per cent; the Nasdaq Composite tumbled 2.18 per cent while S&P 500 sank 1.09 per cent.
28/01/2016
Indian equity benchmarks are tipped to witness a positive opening on Thursday ahead of the January derivatives expiry. Gains across most markets in Asia may support sentiment at Dalal Street as the US Federal Reserve which left interest rates unchanged on Wednesday, signaled that it will continue to undertake a gradual approach in tightening borrowing costs further in the world’s biggest economy amidst heightened global headwinds, bolstering the lure for risky assets. The FOMC acknowledged that it is keeping a close watch on developments from China to Europe, and on the movement of oil prices, to gauge any possible adverse impact on the US economy. Strength in the CNX Nifty Index futures for January delivery which advanced by 0.32 per cent or 23.5 points at 7,455 at 10:33 am Singapore time signals a gap up opening for Dalal Street today. Volatility may remain high at the domestic bourses as traders roll over their positions ahead of the January futures and options (F&O) contract expiry on Thursday. Traders will focus on the Q3 earnings numbers of index heavyweights Bharti Airtel, ICICI Bank, Maruti Suzuki and Glenmark Pharmaceuticals to be unveiled today. The 30-share Sensex on Wednesday closed tad higher, up by 6.44 points or by 0.03 per cent to end at 24,492.39 as investors weighed S&P’s comments which signaled limited external risks to Asia’s third biggest economy which is mainly consumption driven, while caution ahead of F&O expiry restricted gains.
Most Asian stocks climbed today after the Fed said that it is likely to stick to a measured pace of policy tightening while stressing that policymakers are closely watching international developments and their possible impact on US economic outlook. However, China’s Shanghai Composite fell even as the People’s Bank of China injected 340 billion Yuan into the country’s financial system via reverse repurchase agreements. Hang Seng climbed and Japan’s Nikkei 225 advanced as traders eyed the outcome of the Bank of Japan’s policy meet in which it may maintain stimulus to support the world’s third biggest economy. Wall Street succumbed to a steep sell-off on Wednesday as traders seemed unimpressed with the Fed statement while heavyweights such as Apple and Boeing sank after paring their outlooks. Traders cast aside robust US housing data as sales of new homes surged 10.8 per cent to the highest level in ten months at a 544,000 annual pace in December 2015. The Dow Jones Industrial Average shed 1.38 per cent; the Nasdaq Composite tumbled 2.18 per cent while S&P 500 sank 1.09 per cent.
