Pre Session- Bears may continue to grip Dalal Street on global rout
09/02/2016
Indian equity benchmarks are poised to extend a slide on Tuesday as a worsening global sell-off amidst heightened worries over the health of the world economy sours the appetite for risky assets. Global equities are lurching on the brink of a bear market as China fails to stave off a deepening economic slowdown while the rout in oil prices continues. Japan’s recent decision to introduce negative interest rates has also exacerbated jitters over global growth. Weakness in the CNX Nifty Index futures for February delivery which plunged 0.76 per cent or by 55.5 points at 7,318.5 at 10:33 am Singapore time, signals a gap down opening for Dalal Street today. Meanwhile, traders will react to India’s Q3 GDP data released after-market hours on Monday which showed that Asia’s third biggest economy expanded by 7.3 per cent in the October-December 2015 quarter from the same period a year ago, compared to a revised 7.7 per cent growth in Q2 FY 2015-16. The government has pegged full-year FY 2015-16 economic growth at 7.6 per cent, an acceleration from the 7.2 per cent expansion witnessed in FY 2014-15. The focus today will be on the Q3 earnings of Dr Reddy's Laboratories, Hindalco Industries, Punjab National Bank, Bharat Forge, Central Bank of India, Dena Bank, GAIL, Aurobindo Pharma and SAIL. Snapping a two-day winning streak, the 30-share Sensex on Monday tumbled by 329.55 points or by 1.34 per cent to end at 24,287.42 as weakness in European equities amidst worries over global growth hit sentiment.
While many Asian markets including those in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 plummeted by over 4.5 per cent as a stronger yen took toll on exporter stocks. The yen rose as investors shunned risky assets and sought shelter in safe havens amidst fears over the fast faltering global economic recovery. Wall Street sank on Monday with benchmark S&P 500 hitting a 22-month low and Nasdaq Composite approaching a bear market led by a sell-off in banking and technology shares. The Dow Jones Industrial Average fell 1.10 per cent; the Nasdaq Composite tumbled 1.82 per cent while S&P 500 sank 1.42 per cent.
09/02/2016
Indian equity benchmarks are poised to extend a slide on Tuesday as a worsening global sell-off amidst heightened worries over the health of the world economy sours the appetite for risky assets. Global equities are lurching on the brink of a bear market as China fails to stave off a deepening economic slowdown while the rout in oil prices continues. Japan’s recent decision to introduce negative interest rates has also exacerbated jitters over global growth. Weakness in the CNX Nifty Index futures for February delivery which plunged 0.76 per cent or by 55.5 points at 7,318.5 at 10:33 am Singapore time, signals a gap down opening for Dalal Street today. Meanwhile, traders will react to India’s Q3 GDP data released after-market hours on Monday which showed that Asia’s third biggest economy expanded by 7.3 per cent in the October-December 2015 quarter from the same period a year ago, compared to a revised 7.7 per cent growth in Q2 FY 2015-16. The government has pegged full-year FY 2015-16 economic growth at 7.6 per cent, an acceleration from the 7.2 per cent expansion witnessed in FY 2014-15. The focus today will be on the Q3 earnings of Dr Reddy's Laboratories, Hindalco Industries, Punjab National Bank, Bharat Forge, Central Bank of India, Dena Bank, GAIL, Aurobindo Pharma and SAIL. Snapping a two-day winning streak, the 30-share Sensex on Monday tumbled by 329.55 points or by 1.34 per cent to end at 24,287.42 as weakness in European equities amidst worries over global growth hit sentiment.
While many Asian markets including those in China and Hong Kong remained closed for Lunar New Year holidays, Japan’s Nikkei 225 plummeted by over 4.5 per cent as a stronger yen took toll on exporter stocks. The yen rose as investors shunned risky assets and sought shelter in safe havens amidst fears over the fast faltering global economic recovery. Wall Street sank on Monday with benchmark S&P 500 hitting a 22-month low and Nasdaq Composite approaching a bear market led by a sell-off in banking and technology shares. The Dow Jones Industrial Average fell 1.10 per cent; the Nasdaq Composite tumbled 1.82 per cent while S&P 500 sank 1.42 per cent.
