Pre Session- Bearish opening on the cards for Sensex on renewed global rout
03/02/2016
Indian equity benchmarks are poised to witness a gap down opening on Wednesday tracking an intense sell-off in equities worldwide as a continued oil collapse and mounting worries over a China slowdown signaled heightened risks to global economic growth, prompting a fight from risky assets. Weakness in the CNX Nifty Index futures for February delivery which declined by 0.90 per cent or 66.5 points at 7,400 at 10:21 am Singapore time, indicates that Dalal Street may open lower today. On the economic front, the focus will be on the January Services PMI data to be released today which will offer further cues over the health of Asia’s third biggest economy. In December, the Indian services gauge hit a ten-month high of 53.6, up from 50.1 in the previous month. A reading above 50 signals expansion in services activity over the prior month. As expected, the Reserve Bank of India (RBI) left key interest rates unchanged on Tuesday with further rate cuts hinging upon continued signs of fiscal consolidation, the progress of which will be unveiled in the Union Budget, while the central bank is also keeping a close watch on inflation which has accelerated in recent months. The RBI pegged India’s economic growth for FY 2015-16 at 7.4 per cent. Investors will also eye the Q3 earnings of Dish TV and Pfizer today. Shares of realty giant DLF may witness some buying momentum after the company in after-market hours on Tuesday reported a 24 per cent jump in consolidated net profit at Rs 163.95 crore in Q3 FY 2015-16 from the year ago period on higher sales. The Sensex on Tuesday tumbled by 285.83 points or by 1.15 per cent to end at 24,539 as the RBI maintained status quo on borrowing costs while metal stocks plummeted amid dwindling demand prospects in China, and as markets from Asia to Europe fell & the rupee weakened, with investors turning risk averse.
Asian stocks retreated sharply as concerns over a faltering global economic recovery and a freefall in oil prices forced investors to shun equities. China’s Shanghai Composite slumped by over 1 per cent as energy producers tumbled amidst falling crude prices while traders looked past data showing acceleration in the country’s services growth last month. A private survey showed that China’s services gauge climbed to 52.4 in January from December’s 17-month low of 50.2. Hang Seng slid over 3 per cent and so did Nikkei 225 as oil’s biggest two-day drop in nearly seven years soured risk taking appetite while tepid corporate earnings weighed. Wall Street plunged on Tuesday as a sell-off in oil and jitters over the world economy weighed heavily. Meanwhile, Federal Reserve Bank of Kansas City President Esther George stressed that the recent financial turmoil was anticipated, meaning that there is no reason why the Fed should delay tightening interest rates further. The Dow Jones Industrial Average slipped 1.8 per cent, the Nasdaq Composite sank 2.24 per cent while S&P 500 fell 1.87 per cent.
03/02/2016
Indian equity benchmarks are poised to witness a gap down opening on Wednesday tracking an intense sell-off in equities worldwide as a continued oil collapse and mounting worries over a China slowdown signaled heightened risks to global economic growth, prompting a fight from risky assets. Weakness in the CNX Nifty Index futures for February delivery which declined by 0.90 per cent or 66.5 points at 7,400 at 10:21 am Singapore time, indicates that Dalal Street may open lower today. On the economic front, the focus will be on the January Services PMI data to be released today which will offer further cues over the health of Asia’s third biggest economy. In December, the Indian services gauge hit a ten-month high of 53.6, up from 50.1 in the previous month. A reading above 50 signals expansion in services activity over the prior month. As expected, the Reserve Bank of India (RBI) left key interest rates unchanged on Tuesday with further rate cuts hinging upon continued signs of fiscal consolidation, the progress of which will be unveiled in the Union Budget, while the central bank is also keeping a close watch on inflation which has accelerated in recent months. The RBI pegged India’s economic growth for FY 2015-16 at 7.4 per cent. Investors will also eye the Q3 earnings of Dish TV and Pfizer today. Shares of realty giant DLF may witness some buying momentum after the company in after-market hours on Tuesday reported a 24 per cent jump in consolidated net profit at Rs 163.95 crore in Q3 FY 2015-16 from the year ago period on higher sales. The Sensex on Tuesday tumbled by 285.83 points or by 1.15 per cent to end at 24,539 as the RBI maintained status quo on borrowing costs while metal stocks plummeted amid dwindling demand prospects in China, and as markets from Asia to Europe fell & the rupee weakened, with investors turning risk averse.
Asian stocks retreated sharply as concerns over a faltering global economic recovery and a freefall in oil prices forced investors to shun equities. China’s Shanghai Composite slumped by over 1 per cent as energy producers tumbled amidst falling crude prices while traders looked past data showing acceleration in the country’s services growth last month. A private survey showed that China’s services gauge climbed to 52.4 in January from December’s 17-month low of 50.2. Hang Seng slid over 3 per cent and so did Nikkei 225 as oil’s biggest two-day drop in nearly seven years soured risk taking appetite while tepid corporate earnings weighed. Wall Street plunged on Tuesday as a sell-off in oil and jitters over the world economy weighed heavily. Meanwhile, Federal Reserve Bank of Kansas City President Esther George stressed that the recent financial turmoil was anticipated, meaning that there is no reason why the Fed should delay tightening interest rates further. The Dow Jones Industrial Average slipped 1.8 per cent, the Nasdaq Composite sank 2.24 per cent while S&P 500 fell 1.87 per cent.