Pre Session- Sensex may snap four-day winning streak on weak Asia trend
08/03/2016
Indian equity benchmarks are poised to witness a gap down opening on Tuesday tracking a bearish trend across stock markets in Asia as investors were jittery ahead of China’s February trade numbers which were set to show a decline in exports, raising fears of a hard landing in the world’s second biggest economy, souring risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery which fell by 0.21 per cent or by 16 points at 7,494.5 at 10:30 am Singapore time, signals that Dalal Street may open lower today after Monday’s holiday on account for Mahashivratri. Meanwhile, traders may resort to profit booking at existing levels after the stellar four-day rally which has seen the Sensex advance by a whopping 1,644 points as the government’s commitment to maintain fiscal prudence opened the door for further interest rate cuts by the RBI. Looking ahead to the week, the focus will be on January’s industrial output numbers on Friday set to offer fresh cues over the health of Asia’s third biggest economy. Marking a second straight drop, India’s industrial output fell by 1.3 per cent in December 2015 from the same month a year ago, signaling underlying weakness in the manufacturing sector. Traders will also eye the proceedings in the ongoing Budget Session of the Parliament to monitor the progress on key reform bills. Further, trend of foreign investment, movement of rupee vs. greenback, oil price movements and global cues will also dictate the trend of the country’s stock markets this week. Driven by fresh buying interest from FPIs, the 30-share Sensex marked its biggest weekly gain in four years, up by 1,492.18 points to end at 24,646.48 last week.
Asian stocks retreated sharply ahead of China trade data which was set to signal further underlying weakness in Asia’s biggest economy. China’s Shanghai Composite tanked over 2.8 per cent, Hang Seng lost over 1 per cent as economists predicted a 14.5 per cent, year on year dip in China’s overseas shipments in February 2016. Japan’s Nikkei 225 lost almost 2 per cent as a stronger yen curbed the lure for exporter stocks while data showed that Japan’s economy shrank an annualized 1.1 per cent in the fourth quarter of 2015. Marking a fifth straight gain, most stocks at Wall Street ended up on Monday as oil rallied while hopes that China’s stimulus may boost demand for natural resources also bolstered sentiment. China’s policymakers set an economic growth target of 6.5 to 7 per cent for 2016, stressing that they are aiming a record high budget deficit to help shore up growth. The Dow Jones Industrial Average rallied 0.40 per cent; the Nasdaq Composite fell 0.19 per cent while S&P 500 climbed 0.09 per cent.
08/03/2016
Indian equity benchmarks are poised to witness a gap down opening on Tuesday tracking a bearish trend across stock markets in Asia as investors were jittery ahead of China’s February trade numbers which were set to show a decline in exports, raising fears of a hard landing in the world’s second biggest economy, souring risk taking appetite. Weakness in the CNX Nifty Index futures for March delivery which fell by 0.21 per cent or by 16 points at 7,494.5 at 10:30 am Singapore time, signals that Dalal Street may open lower today after Monday’s holiday on account for Mahashivratri. Meanwhile, traders may resort to profit booking at existing levels after the stellar four-day rally which has seen the Sensex advance by a whopping 1,644 points as the government’s commitment to maintain fiscal prudence opened the door for further interest rate cuts by the RBI. Looking ahead to the week, the focus will be on January’s industrial output numbers on Friday set to offer fresh cues over the health of Asia’s third biggest economy. Marking a second straight drop, India’s industrial output fell by 1.3 per cent in December 2015 from the same month a year ago, signaling underlying weakness in the manufacturing sector. Traders will also eye the proceedings in the ongoing Budget Session of the Parliament to monitor the progress on key reform bills. Further, trend of foreign investment, movement of rupee vs. greenback, oil price movements and global cues will also dictate the trend of the country’s stock markets this week. Driven by fresh buying interest from FPIs, the 30-share Sensex marked its biggest weekly gain in four years, up by 1,492.18 points to end at 24,646.48 last week.
Asian stocks retreated sharply ahead of China trade data which was set to signal further underlying weakness in Asia’s biggest economy. China’s Shanghai Composite tanked over 2.8 per cent, Hang Seng lost over 1 per cent as economists predicted a 14.5 per cent, year on year dip in China’s overseas shipments in February 2016. Japan’s Nikkei 225 lost almost 2 per cent as a stronger yen curbed the lure for exporter stocks while data showed that Japan’s economy shrank an annualized 1.1 per cent in the fourth quarter of 2015. Marking a fifth straight gain, most stocks at Wall Street ended up on Monday as oil rallied while hopes that China’s stimulus may boost demand for natural resources also bolstered sentiment. China’s policymakers set an economic growth target of 6.5 to 7 per cent for 2016, stressing that they are aiming a record high budget deficit to help shore up growth. The Dow Jones Industrial Average rallied 0.40 per cent; the Nasdaq Composite fell 0.19 per cent while S&P 500 climbed 0.09 per cent.
