Pre Session- Sensex may open tad lower on renewed global slump
24/02/2016
Indian equity benchmarks may open slightly lower on Wednesday tracking a renewed rout in global equities as falling crude oil prices soured risk taking appetite, whilst caution ahead of the Railway Budget and Economic Survey due this week and the Union Budget on Monday, may also prompt Dalal Street traders to stay on the sidelines. The CNX Nifty Index futures for February delivery were trading down by 0.06 per cent or by 4 points at 7,104.5 at 10:33 am Singapore time, signaling that the Sensex may open on a slightly negative note today. The focus will remain on the Budget Session which began on Tuesday with investors hopeful that the NDA government will be able to get the green light for key economic reform bills such as the GST and Real Estate bill to help put Asia’s third biggest economy on a high growth pedestal. Meanwhile, government officials have indicated that the Union Budget 2016 will be growth oriented but keeping in view the fiscal constraints plaguing the exchequer. Volatility may remain high at domestic bourses as traders roll over their positions ahead of the February Futures & Options (F& O) contract expiry on Thursday. Snapping a four-day rally, the 30-share Sensex on Tuesday tumbled 378.61 points or by 1.59 per cent to end at 23,410.18 as traders resorted to profit booking amid lackluster trade in Asian stocks and weakness in European shares as oil prices turned lower while traders remained jittery ahead of the Union Budget. Sentiment also took a hit after a report said that exports of 17 out of the 30 sectors closely monitored by the Commerce Ministry fell in January.
Asian stocks retreated as oil resumed losses on worries that OPEC members won’t cut output while concerns over China’s economy weighed as private gauges of Chinese manufacturing and services hit new lows in February and an index of business confidence slipped. China’s Shanghai Composite fell but losses were restricted by gains in shares of drugmakers and industrial companies on speculation that they could benefit from policies set to be unveiled at next week’s annual legislative meetings, including improved measures to deal with ageing population and promotion of urbanization in order to achieve medium- to high-speed economic growth. Hang Seng tanked over 1 per cent and Japan’s Nikkei 225 declined as a stronger yen eroded the appeal of exporter stocks. Wall Street succumbed to a sell-off on Tuesday as oil bears returned after Iran called a plan by Saudi Arabia and Russia to freeze output as “ridiculous” and China’s central bank weakened the yuan, marring sentiment. Meanwhile, a gauge measuring US consumer confidence plunged to a seven- month low of 92.2 in February, sending weak signals about the health of the world’s biggest economy. The Dow Jones Industrial Average tumbled 1.14 per cent; the Nasdaq Composite tanked 1.47 per cent while S&P 500 shed 1.25 per cent.
24/02/2016
Indian equity benchmarks may open slightly lower on Wednesday tracking a renewed rout in global equities as falling crude oil prices soured risk taking appetite, whilst caution ahead of the Railway Budget and Economic Survey due this week and the Union Budget on Monday, may also prompt Dalal Street traders to stay on the sidelines. The CNX Nifty Index futures for February delivery were trading down by 0.06 per cent or by 4 points at 7,104.5 at 10:33 am Singapore time, signaling that the Sensex may open on a slightly negative note today. The focus will remain on the Budget Session which began on Tuesday with investors hopeful that the NDA government will be able to get the green light for key economic reform bills such as the GST and Real Estate bill to help put Asia’s third biggest economy on a high growth pedestal. Meanwhile, government officials have indicated that the Union Budget 2016 will be growth oriented but keeping in view the fiscal constraints plaguing the exchequer. Volatility may remain high at domestic bourses as traders roll over their positions ahead of the February Futures & Options (F& O) contract expiry on Thursday. Snapping a four-day rally, the 30-share Sensex on Tuesday tumbled 378.61 points or by 1.59 per cent to end at 23,410.18 as traders resorted to profit booking amid lackluster trade in Asian stocks and weakness in European shares as oil prices turned lower while traders remained jittery ahead of the Union Budget. Sentiment also took a hit after a report said that exports of 17 out of the 30 sectors closely monitored by the Commerce Ministry fell in January.
Asian stocks retreated as oil resumed losses on worries that OPEC members won’t cut output while concerns over China’s economy weighed as private gauges of Chinese manufacturing and services hit new lows in February and an index of business confidence slipped. China’s Shanghai Composite fell but losses were restricted by gains in shares of drugmakers and industrial companies on speculation that they could benefit from policies set to be unveiled at next week’s annual legislative meetings, including improved measures to deal with ageing population and promotion of urbanization in order to achieve medium- to high-speed economic growth. Hang Seng tanked over 1 per cent and Japan’s Nikkei 225 declined as a stronger yen eroded the appeal of exporter stocks. Wall Street succumbed to a sell-off on Tuesday as oil bears returned after Iran called a plan by Saudi Arabia and Russia to freeze output as “ridiculous” and China’s central bank weakened the yuan, marring sentiment. Meanwhile, a gauge measuring US consumer confidence plunged to a seven- month low of 92.2 in February, sending weak signals about the health of the world’s biggest economy. The Dow Jones Industrial Average tumbled 1.14 per cent; the Nasdaq Composite tanked 1.47 per cent while S&P 500 shed 1.25 per cent.
