Pre Session- Gap up opening on the cards at Dalal Street on global rally; CPI data eyed
14/03/2016
Indian equity benchmarks are set to witness a bullish opening on Monday tracking a strong rally across markets in Asia ahead of key policy meetings of Bank of Japan and US Federal Reserve this week as traders bet on major central banks to help support a flagging global economic recovery, bolstering the appetite for risky assets. Gains in the CNX Nifty Index futures for March delivery which advanced by 0.67 per cent or 50.5 points at 7,564.5 at 10:36 am Singapore time, signal a positive opening at Dalal Street today. The focus today will be on the CPI and WPI data which, coupled with Friday’s industrial output numbers may further press the case for the RBI to cut interest rates at its April meet. Consumer prices probably rose by 5.6 per cent in February 2016 from the same month a year ago, compared to an annual jump of 5.69 per cent in January 2016, led by slower gains in food prices, while wholesale inflation may have continued to remain in negative territory, analysts estimated. Marking a third straight month of contraction, India’s industrial output shrank by 1.5 per cent in January 2016 from the same month a year ago, following an annual 1.3 per cent contraction in December 2015, signaling underlying weakness in manufacturing in Asia’s third biggest economy. Aside from macroeconomic data, market sentiment at local bourses this week will be driven by foreign investment trend, global cues, and movement of the rupee against the dollar and the direction of oil prices. Notching up a second straight weekly gain, the 30-share Sensex advanced by 72 points last week to end at 24,717.99 driven by robust foreign fund flows and strong global cues. On Friday, the Sensex rallied by 94.65 points or by 0.38 per cent.
Asian stocks jumped as investors awaited key central bank meetings in Japan and the US this week while reacting to a handsome rally at Wall Street on Friday. China’s Shanghai Composite jumped over 1.5 per cent as the head of the country’s new securities regulator vowed to undertake measures to help support equities and go easy on reforms that might have flooded exchanges with new shares. The weakest gain in China’s industrial output since the 2009 global recession raised bets of further stimulus to help revive the world’s second biggest economy. China’s industrial output advanced 5.4 per cent, year on year in January-February 2016, data over the weekend showed. Hang Seng rose over 1 per cent and Japan’s Nikkei 225 jumped close to 2 per cent after core machinery orders surged 15 per cent in January on the month, signaling robust capital spending in the world’s third biggest economy, and a weaker yen bolstered the appeal of exporter stocks. US stocks soared on Friday as traders speculated that unprecedented easing measures from the ECB may help boost growth, easing jitters over the health of the global economy. The Dow Jones Industrial Average rallied 1.28 per cent; the Nasdaq Composite surged 1.85 per cent while S&P 500 rose 1.64 per cent.
14/03/2016
Indian equity benchmarks are set to witness a bullish opening on Monday tracking a strong rally across markets in Asia ahead of key policy meetings of Bank of Japan and US Federal Reserve this week as traders bet on major central banks to help support a flagging global economic recovery, bolstering the appetite for risky assets. Gains in the CNX Nifty Index futures for March delivery which advanced by 0.67 per cent or 50.5 points at 7,564.5 at 10:36 am Singapore time, signal a positive opening at Dalal Street today. The focus today will be on the CPI and WPI data which, coupled with Friday’s industrial output numbers may further press the case for the RBI to cut interest rates at its April meet. Consumer prices probably rose by 5.6 per cent in February 2016 from the same month a year ago, compared to an annual jump of 5.69 per cent in January 2016, led by slower gains in food prices, while wholesale inflation may have continued to remain in negative territory, analysts estimated. Marking a third straight month of contraction, India’s industrial output shrank by 1.5 per cent in January 2016 from the same month a year ago, following an annual 1.3 per cent contraction in December 2015, signaling underlying weakness in manufacturing in Asia’s third biggest economy. Aside from macroeconomic data, market sentiment at local bourses this week will be driven by foreign investment trend, global cues, and movement of the rupee against the dollar and the direction of oil prices. Notching up a second straight weekly gain, the 30-share Sensex advanced by 72 points last week to end at 24,717.99 driven by robust foreign fund flows and strong global cues. On Friday, the Sensex rallied by 94.65 points or by 0.38 per cent.
Asian stocks jumped as investors awaited key central bank meetings in Japan and the US this week while reacting to a handsome rally at Wall Street on Friday. China’s Shanghai Composite jumped over 1.5 per cent as the head of the country’s new securities regulator vowed to undertake measures to help support equities and go easy on reforms that might have flooded exchanges with new shares. The weakest gain in China’s industrial output since the 2009 global recession raised bets of further stimulus to help revive the world’s second biggest economy. China’s industrial output advanced 5.4 per cent, year on year in January-February 2016, data over the weekend showed. Hang Seng rose over 1 per cent and Japan’s Nikkei 225 jumped close to 2 per cent after core machinery orders surged 15 per cent in January on the month, signaling robust capital spending in the world’s third biggest economy, and a weaker yen bolstered the appeal of exporter stocks. US stocks soared on Friday as traders speculated that unprecedented easing measures from the ECB may help boost growth, easing jitters over the health of the global economy. The Dow Jones Industrial Average rallied 1.28 per cent; the Nasdaq Composite surged 1.85 per cent while S&P 500 rose 1.64 per cent.
