Pre Session- Sensex set to extend rally on bullish global trend
02/03/2016
Indian equity benchmarks are tipped to witness a gap up opening on Wednesday tracking strong gains from markets across Asia and a bullish finish at Wall Street overnight on signs of steadying US economic growth and on optimism that central banks from Asia to Europe will step up monetary stimulus to help prop up a recovery, bolstering risk taking appetite. Strength in the CNX Nifty Index futures for March delivery which climbed by 1.46 per cent or by 107 points at 7,343 at 10:24 am Singapore time, signals that the Sensex may open higher today following the biggest advance in more than two years on Tuesday when hopes that the government’s decision to stick with its budget deficit target may lead to a further reduction in interest rates by the RBI, buoyed sentiment. The centre maintained its fiscal deficit target at 3.5 per cent of the country’s GDP in FY 2016-17, the least since 2008, while that for the ongoing fiscal was retained at 3.9 per cent. Increased speculation of a near-term interest rate cut may continue to fuel a rally at Dalal Street. Meanwhile, a second straight expansion in India’s manufacturing has eased concerns over a slowdown in Asia’s third biggest economy as the PMI stood at 51.1 in February, unchanged from the level in January, but above the 50-mark that separates expansion from contraction. The 30-share Sensex on Tuesday jumped by 777.35 points or by 3.38 per cent to end at 23,779.35.
Asian stocks advanced tracking a resurgence at Wall Street overnight, whilst a weaker yen buoyed Japanese equities and energy companies rallied. China’s Shanghai Composite climbed driven by a rally in property developers, overshadowing Moody’s decision to cut China’s credit rating outlook to negative from stable amidst concerns over rising government debt, falling currency reserves and doubts over policymakers’ ability to undertake structural reforms. Hang Seng soared over 2.5 per cent and Japan’s Nikkei 225 advanced close to 4 per cent as a weaker yen bolstered the lure for exporter stocks. Wall Street rallied to the highest level in seven weeks on Tuesday as signs of stabilization in US manufacturing activity quelled fears over a slowdown in the world’s biggest economy. The US ISM Manufacturing PMI came in at 49.5 in February, the highest since September, up from 48.2 in January, above estimates for 48.5 but remaining shy of the 50 mark. The Dow Jones Industrial Average rallied 2.11 per cent; the Nasdaq Composite advanced 2.89 per cent while S&P 500 climbed 2.39 per cent.
02/03/2016
Indian equity benchmarks are tipped to witness a gap up opening on Wednesday tracking strong gains from markets across Asia and a bullish finish at Wall Street overnight on signs of steadying US economic growth and on optimism that central banks from Asia to Europe will step up monetary stimulus to help prop up a recovery, bolstering risk taking appetite. Strength in the CNX Nifty Index futures for March delivery which climbed by 1.46 per cent or by 107 points at 7,343 at 10:24 am Singapore time, signals that the Sensex may open higher today following the biggest advance in more than two years on Tuesday when hopes that the government’s decision to stick with its budget deficit target may lead to a further reduction in interest rates by the RBI, buoyed sentiment. The centre maintained its fiscal deficit target at 3.5 per cent of the country’s GDP in FY 2016-17, the least since 2008, while that for the ongoing fiscal was retained at 3.9 per cent. Increased speculation of a near-term interest rate cut may continue to fuel a rally at Dalal Street. Meanwhile, a second straight expansion in India’s manufacturing has eased concerns over a slowdown in Asia’s third biggest economy as the PMI stood at 51.1 in February, unchanged from the level in January, but above the 50-mark that separates expansion from contraction. The 30-share Sensex on Tuesday jumped by 777.35 points or by 3.38 per cent to end at 23,779.35.
Asian stocks advanced tracking a resurgence at Wall Street overnight, whilst a weaker yen buoyed Japanese equities and energy companies rallied. China’s Shanghai Composite climbed driven by a rally in property developers, overshadowing Moody’s decision to cut China’s credit rating outlook to negative from stable amidst concerns over rising government debt, falling currency reserves and doubts over policymakers’ ability to undertake structural reforms. Hang Seng soared over 2.5 per cent and Japan’s Nikkei 225 advanced close to 4 per cent as a weaker yen bolstered the lure for exporter stocks. Wall Street rallied to the highest level in seven weeks on Tuesday as signs of stabilization in US manufacturing activity quelled fears over a slowdown in the world’s biggest economy. The US ISM Manufacturing PMI came in at 49.5 in February, the highest since September, up from 48.2 in January, above estimates for 48.5 but remaining shy of the 50 mark. The Dow Jones Industrial Average rallied 2.11 per cent; the Nasdaq Composite advanced 2.89 per cent while S&P 500 climbed 2.39 per cent.
