Pre Session: Sensex seen opening flat ahead of RBI policy
02/02/2016
Indian equity benchmarks may witness a muted opening on Tuesday, tracking mixed trend across Asian peers, as traders shift their focus to RBI policy review which will set direction for the domestic bourses. The CNX Nifty Index futures for February delivery advanced 10 points at 7,569.50, at 10:30 am Singapore time, signaling that Dalal Street may open higher today. All eyes will be fixated 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.
On the corporate front, December quarter earnings from the likes of 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 Monday closed at 24824.83, down by 45.86 points or by 0.18 per cent, and the NSE Nifty ended at 7555.95, down by 7.6 points or by 0.1 per cent. The traders refrained from enlarging any fresh positions before the RBI’s policy meet on Tuesday despite surprise expansion in India’s January manufacturing PMI. India’s official manufacturing purchasing manager’s index (PMI) expanded to a four-month high of 51.1 against 49.1 in December, signaling a pickup in Asia's third biggest economy.
Asian stocks were trading mixed led by decline in energy stocks after oil resumed its sell-off amid signs China's economy is deteriorating, souring risk taking appetite. Crude prices fall after underwhelming Chinese factory data which showed continued manufacturing contraction in the world’s second biggest economy. Markets in China and Hong Kong rebounded, paring early losses, while Japan’s Nikkei 225 edges lower amid profit booking after strong rally last week. In the overnight trade, Wall Street ended flat, paring early losses, amidst fresh fear of deteriorating Chinese economy coupled with renewed decline in oil futures. The Dow Jones Industrial Average slipped 0.1 per cent, S&P 500 fell less than 0.1 per cent, while the Nasdaq Composite rose 0.1 per cent
02/02/2016
Indian equity benchmarks may witness a muted opening on Tuesday, tracking mixed trend across Asian peers, as traders shift their focus to RBI policy review which will set direction for the domestic bourses. The CNX Nifty Index futures for February delivery advanced 10 points at 7,569.50, at 10:30 am Singapore time, signaling that Dalal Street may open higher today. All eyes will be fixated 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.
On the corporate front, December quarter earnings from the likes of 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 Monday closed at 24824.83, down by 45.86 points or by 0.18 per cent, and the NSE Nifty ended at 7555.95, down by 7.6 points or by 0.1 per cent. The traders refrained from enlarging any fresh positions before the RBI’s policy meet on Tuesday despite surprise expansion in India’s January manufacturing PMI. India’s official manufacturing purchasing manager’s index (PMI) expanded to a four-month high of 51.1 against 49.1 in December, signaling a pickup in Asia's third biggest economy.
Asian stocks were trading mixed led by decline in energy stocks after oil resumed its sell-off amid signs China's economy is deteriorating, souring risk taking appetite. Crude prices fall after underwhelming Chinese factory data which showed continued manufacturing contraction in the world’s second biggest economy. Markets in China and Hong Kong rebounded, paring early losses, while Japan’s Nikkei 225 edges lower amid profit booking after strong rally last week. In the overnight trade, Wall Street ended flat, paring early losses, amidst fresh fear of deteriorating Chinese economy coupled with renewed decline in oil futures. The Dow Jones Industrial Average slipped 0.1 per cent, S&P 500 fell less than 0.1 per cent, while the Nasdaq Composite rose 0.1 per cent
