Pre Session- Sensex may open tad higher amid mixed Asian cues ahead of US jobs data
05/02/2016
Indian equity benchmarks may open flat, with a positive bias on Friday tracking a mixed trend in stock markets across Asia as traders awaited the crucial US January jobs data set for release today which may offer further cues over the health of the labour market in the world’s biggest economy, and probably dictate the timing of further interest rate tightening by the Federal Reserve that had raised borrowing costs for the first time in almost a decade, in December 2015. The CNX Nifty Index futures for February delivery were up by 0.03 per cent or by 2.5 points at 7,447.5 at 10:24 am Singapore time, signaling that Dalal Street may open tad higher today. Shares of Tata Steel may witness some selling pressure today after the company in after-market hours on Thursday reported a Q3 consolidated net loss of Rs 2,127.23 crore amid subdued domestic demand, higher regulatory costs and a strong British pound. Shares of Lupin and Tata Power will be in focus today as the companies unveil their December quarter earnings. The focus of domestic investors is slowly starting to shift to the Union Budget scheduled for February 29 with the RBI Governor Raghuram Rajan this week calling for more policies aimed at eliminating supply bottlenecks and fiscal consolidation. Snapping a three-day losing streak, the 30-share Sensex on Thursday rallied by 115.11 points or by 0.48 per cent to end at 24,338.43 as the sharp losses in recent sessions paved way for bargain buying in beaten down blue chips, while a rebound in global stocks as oil prices staged a recovery buoyed sentiment whilst traders bet on further central bank support from Asia to Europe to help spur global economic growth.
Asian stocks were trading mixed as traders were cautious ahead of US non-farm payrolls numbers to be released today which may have a bearing on the timing of the next Fed rate hike. Analysts expect the world’s biggest economy to have added 190,000 jobs in January, down from December’s 292,000 addition. China’s Shanghai Composite was trading higher but gains were limited ahead of next week’s Lunar New Year holidays. Hang Seng advanced but Japan’s Nikkei 225 tumbled more than 1 per cent as a stronger yen eroded the appeal of exporter stocks. Marking a second day of gains, Wall Street closed higher on Thursday as dollar weakness boosted commodity and industrial companies, overshadowing tepid factory and labour market data which signaled further fears over a slowdown in the US economy. US jobless claims climbed by 8,000 to 285,000 last week while factory orders fell the most in a year, plunging by 2.9 per cent in December. The Dow Jones Industrial Average advanced 0.49 per cent; the Nasdaq Composite climbed 0.12 per cent while S&P 500 rose 0.15 per cent.
05/02/2016
Indian equity benchmarks may open flat, with a positive bias on Friday tracking a mixed trend in stock markets across Asia as traders awaited the crucial US January jobs data set for release today which may offer further cues over the health of the labour market in the world’s biggest economy, and probably dictate the timing of further interest rate tightening by the Federal Reserve that had raised borrowing costs for the first time in almost a decade, in December 2015. The CNX Nifty Index futures for February delivery were up by 0.03 per cent or by 2.5 points at 7,447.5 at 10:24 am Singapore time, signaling that Dalal Street may open tad higher today. Shares of Tata Steel may witness some selling pressure today after the company in after-market hours on Thursday reported a Q3 consolidated net loss of Rs 2,127.23 crore amid subdued domestic demand, higher regulatory costs and a strong British pound. Shares of Lupin and Tata Power will be in focus today as the companies unveil their December quarter earnings. The focus of domestic investors is slowly starting to shift to the Union Budget scheduled for February 29 with the RBI Governor Raghuram Rajan this week calling for more policies aimed at eliminating supply bottlenecks and fiscal consolidation. Snapping a three-day losing streak, the 30-share Sensex on Thursday rallied by 115.11 points or by 0.48 per cent to end at 24,338.43 as the sharp losses in recent sessions paved way for bargain buying in beaten down blue chips, while a rebound in global stocks as oil prices staged a recovery buoyed sentiment whilst traders bet on further central bank support from Asia to Europe to help spur global economic growth.
Asian stocks were trading mixed as traders were cautious ahead of US non-farm payrolls numbers to be released today which may have a bearing on the timing of the next Fed rate hike. Analysts expect the world’s biggest economy to have added 190,000 jobs in January, down from December’s 292,000 addition. China’s Shanghai Composite was trading higher but gains were limited ahead of next week’s Lunar New Year holidays. Hang Seng advanced but Japan’s Nikkei 225 tumbled more than 1 per cent as a stronger yen eroded the appeal of exporter stocks. Marking a second day of gains, Wall Street closed higher on Thursday as dollar weakness boosted commodity and industrial companies, overshadowing tepid factory and labour market data which signaled further fears over a slowdown in the US economy. US jobless claims climbed by 8,000 to 285,000 last week while factory orders fell the most in a year, plunging by 2.9 per cent in December. The Dow Jones Industrial Average advanced 0.49 per cent; the Nasdaq Composite climbed 0.12 per cent while S&P 500 rose 0.15 per cent.
