Pre Session- Sensex to open tad higher amid subdued Asia trend
15/03/2016
Indian equity benchmarks may witness a flattish opening, with a positive bias on Tuesday tracking weakness in fellow Asian markets as traders stay on the sidelines ahead of the Bank of Japan (BOJ) policy decision and the start of the two-day meet of the US Federal Reserve as debate heats up whether monetary policy has lost its mojo and may be unable to revive a flagging economic recovery. The CNX Nifty Index futures for March delivery climbed 0.03 per cent or 2 points at 7,548.5 at 10:24 am Singapore time, a sign that Dalal Street may open little changed today. Hopes that the Reserve Bank of India (RBI) may cut interest rates on or before its upcoming policy meet on April 5 may offer support to local bourses, amidst a bigger than expected retreat in consumer inflation, the central bank’s benchmark price gauge, and negative wholesale inflation, in February, coupled with the government’s vow to stick to fiscal prudence. India’s consumer inflation cooled to 5.18 per cent in February 2016 from 5.69 per cent in January 2016 while wholesale inflation stayed in the negative terrain for a sixteenth straight month, as wholesale prices fell 0.91 per cent, year on year in February 2016, compared to an annual drop of 0.90 per cent in January 2016, giving the RBI leeway to press on with further policy easing to help buoy demand and revive investments in Asia’s third biggest economy. Marking a second straight rally, the 30-share Sensex on Monday advanced by 86.29 points or by 0.35 per cent to end at 24,804.28 driven by gains in blue chips and a strong trend in Asian markets.
Asian stocks declined today led by weakness in material and energy shares as traders awaited a BOJ policy decision. The BOJ is likely to keep policy unchanged after surprising markets in January by adopting negative interest rates. China’s Shanghai Composite fell after the People’s Bank of China weakened the Yuan’s reference rate by the most since January, raising fears over the health of the world’s second biggest economy. China’s central bank on Tuesday lowered the currency’s fixing, which restricts onshore moves to 2 per cent on either side, by 0.26 per cent to 6.5079 a dollar, a move which may spur capital outflows. Hang Seng fell and Japan’s Nikkei 225 was trading lower ahead of the BOJ verdict. Wall Street ended little changed on Monday as investors awaited key central bank meetings for measures to boost growth in the world economy and stabilize markets. The Fed kicks of a two-day meet on Tuesday, in which the world’s top central bank could offer cues over the trajectory of further interest rate hikes. The Dow Jones Industrial Average climbed 0.09 per cent; the Nasdaq Composite rose 0.04 per cent while S&P 500 fell 0.13 per cent.
15/03/2016
Indian equity benchmarks may witness a flattish opening, with a positive bias on Tuesday tracking weakness in fellow Asian markets as traders stay on the sidelines ahead of the Bank of Japan (BOJ) policy decision and the start of the two-day meet of the US Federal Reserve as debate heats up whether monetary policy has lost its mojo and may be unable to revive a flagging economic recovery. The CNX Nifty Index futures for March delivery climbed 0.03 per cent or 2 points at 7,548.5 at 10:24 am Singapore time, a sign that Dalal Street may open little changed today. Hopes that the Reserve Bank of India (RBI) may cut interest rates on or before its upcoming policy meet on April 5 may offer support to local bourses, amidst a bigger than expected retreat in consumer inflation, the central bank’s benchmark price gauge, and negative wholesale inflation, in February, coupled with the government’s vow to stick to fiscal prudence. India’s consumer inflation cooled to 5.18 per cent in February 2016 from 5.69 per cent in January 2016 while wholesale inflation stayed in the negative terrain for a sixteenth straight month, as wholesale prices fell 0.91 per cent, year on year in February 2016, compared to an annual drop of 0.90 per cent in January 2016, giving the RBI leeway to press on with further policy easing to help buoy demand and revive investments in Asia’s third biggest economy. Marking a second straight rally, the 30-share Sensex on Monday advanced by 86.29 points or by 0.35 per cent to end at 24,804.28 driven by gains in blue chips and a strong trend in Asian markets.
Asian stocks declined today led by weakness in material and energy shares as traders awaited a BOJ policy decision. The BOJ is likely to keep policy unchanged after surprising markets in January by adopting negative interest rates. China’s Shanghai Composite fell after the People’s Bank of China weakened the Yuan’s reference rate by the most since January, raising fears over the health of the world’s second biggest economy. China’s central bank on Tuesday lowered the currency’s fixing, which restricts onshore moves to 2 per cent on either side, by 0.26 per cent to 6.5079 a dollar, a move which may spur capital outflows. Hang Seng fell and Japan’s Nikkei 225 was trading lower ahead of the BOJ verdict. Wall Street ended little changed on Monday as investors awaited key central bank meetings for measures to boost growth in the world economy and stabilize markets. The Fed kicks of a two-day meet on Tuesday, in which the world’s top central bank could offer cues over the trajectory of further interest rate hikes. The Dow Jones Industrial Average climbed 0.09 per cent; the Nasdaq Composite rose 0.04 per cent while S&P 500 fell 0.13 per cent.
