Pre Session- Subdued opening likely for Sensex amidst sluggish global cues; Services PMI eyed
06/01/2016
The key domestic equity benchmarks are set to witness a flat opening, with a negative bias on Wednesday as investors and speculators resort to a cautious approach tracking a mostly weak trend in Asia amidst ongoing worries surrounding China. The CNX Nifty Index futures for January delivery fell 0.03 per cent or 2 points at 7,779 at 10:27 am Singapore time, signaling that the Sensex may open tad lower today. Traders may stay on the sidelines ahead of the December Services PMI set for release on Wednesday, and which may offer latest cues over the health of Asia’s third biggest economy. The gauge measuring India’s services activity fell to 50.1 in November from 53.2 in October. The country’s manufacturing activity fell into contraction for the first time in more than two years with the PMI declining to 49.1 in December, below the neutral 50-mark that separates expansion from contraction. Dalal Street is awaiting the resumption of the government’s reform agenda with the focus now slowly building towards the Budget Session in which key bills such as the GST maybe passed in the Parliament, while the start of the Q3 corporate earnings season next week is also being keenly eyed. Marking a second straight drop, the 30-share Sensex on Tuesday fell 43.01 points or by 0.17 per cent to end at 25,580.34 as Chinese stocks extended a rout, and traders stayed wary ahead of the upcoming corporate results season.
Asian stocks were trading mostly lower as a slowdown in China’s services activity raised concerns over the world’s second biggest economy while the country set a weaker fix for the yuan, signaling pressure on policymakers to devalue the currency to support the economy. The People’s Bank of China cut the yuan reference rate by 0.22 per cent, the most since November 3, to 6.5314 per dollar. Shanghai Composite bounced back after a severe two-day rout, but Hang Seng fell as the China services index declined to 50.2 in December from 51.2 in November. Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street closed little changed on Tuesday as traders weighed China’s move to stabilize the country’s stock markets while December auto sales from top US automakers disappointed. The Dow Jones Industrial Average climbed 0.06 per cent; the Nasdaq Composite dropped 0.24 per cent while S&P 500 advanced 0.20 per cent
06/01/2016
The key domestic equity benchmarks are set to witness a flat opening, with a negative bias on Wednesday as investors and speculators resort to a cautious approach tracking a mostly weak trend in Asia amidst ongoing worries surrounding China. The CNX Nifty Index futures for January delivery fell 0.03 per cent or 2 points at 7,779 at 10:27 am Singapore time, signaling that the Sensex may open tad lower today. Traders may stay on the sidelines ahead of the December Services PMI set for release on Wednesday, and which may offer latest cues over the health of Asia’s third biggest economy. The gauge measuring India’s services activity fell to 50.1 in November from 53.2 in October. The country’s manufacturing activity fell into contraction for the first time in more than two years with the PMI declining to 49.1 in December, below the neutral 50-mark that separates expansion from contraction. Dalal Street is awaiting the resumption of the government’s reform agenda with the focus now slowly building towards the Budget Session in which key bills such as the GST maybe passed in the Parliament, while the start of the Q3 corporate earnings season next week is also being keenly eyed. Marking a second straight drop, the 30-share Sensex on Tuesday fell 43.01 points or by 0.17 per cent to end at 25,580.34 as Chinese stocks extended a rout, and traders stayed wary ahead of the upcoming corporate results season.
Asian stocks were trading mostly lower as a slowdown in China’s services activity raised concerns over the world’s second biggest economy while the country set a weaker fix for the yuan, signaling pressure on policymakers to devalue the currency to support the economy. The People’s Bank of China cut the yuan reference rate by 0.22 per cent, the most since November 3, to 6.5314 per dollar. Shanghai Composite bounced back after a severe two-day rout, but Hang Seng fell as the China services index declined to 50.2 in December from 51.2 in November. Japan’s Nikkei 225 fell as a stronger yen curbed the lure for exporter stocks. Wall Street closed little changed on Tuesday as traders weighed China’s move to stabilize the country’s stock markets while December auto sales from top US automakers disappointed. The Dow Jones Industrial Average climbed 0.06 per cent; the Nasdaq Composite dropped 0.24 per cent while S&P 500 advanced 0.20 per cent
