Pre Session-Gap down opening likely for D-Street as IIP, CPI data disappoint
13/05/2016
Indian equity benchmarks are poised to open on a bearish note on Friday with traders likely to react negatively to dismal factory data showing a loss of momentum for Asia’s third biggest economy. Industrial output in India fell by 0.1 per cent in March 2016 from the same month a year ago, with manufacturing production shrinking 1.2 per cent. Meanwhile, consumer inflation jumped to 5.4 per cent in April 2016 from 4.83 per cent in March 2016 amidst surging food prices, dimming any hopes of an interest rate cut by the RBI in the near-term. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.55 per cent or 43 points at 7,880 at 10:29 AM Singapore time also signal that Dalal Street may open lower today. Investors will eye the March quarter earnings numbers from Bank of Baroda, Cadilla Healthcare, Central Bank of India, Dena Bank, UCO Bank and Union Bank to be released today. Continued jitters over the impact of the India-Mauritius treaty that imposes a capital gains tax on investments coming from Mauritius may also weigh on sentiment. Snapping a two-day losing streak, the 30-share Sensex on Thursday rallied 193.2 points or by 0.75 per cent to end at 25,790.22 as investors cheered the approval by the Rajya Sabha to the bankruptcy bill.
Asian stocks were trading mostly lower as oil prices fell and technology shares dropped with Apple sinking to the lowest level since June 2014. China’s Shanghai posted modest gains which were trimmed by fears that policymakers may hold off further stimulus. Hang Seng plunged and Japan’s Nikkei 225 lost over 1 per cent on below par earnings numbers. Wall Street treaded water on Thursday amidst a slide in Apple after Nikkei reported that shipments of iPhone chips for the remainder of 2016 will likely shrink versus a year ago. US jobless claims rose 20,000 to 294,000 in the week ended May 7 to a one-year high, signaling a cooling labour market recovery in the world’s biggest economy.
13/05/2016
Indian equity benchmarks are poised to open on a bearish note on Friday with traders likely to react negatively to dismal factory data showing a loss of momentum for Asia’s third biggest economy. Industrial output in India fell by 0.1 per cent in March 2016 from the same month a year ago, with manufacturing production shrinking 1.2 per cent. Meanwhile, consumer inflation jumped to 5.4 per cent in April 2016 from 4.83 per cent in March 2016 amidst surging food prices, dimming any hopes of an interest rate cut by the RBI in the near-term. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.55 per cent or 43 points at 7,880 at 10:29 AM Singapore time also signal that Dalal Street may open lower today. Investors will eye the March quarter earnings numbers from Bank of Baroda, Cadilla Healthcare, Central Bank of India, Dena Bank, UCO Bank and Union Bank to be released today. Continued jitters over the impact of the India-Mauritius treaty that imposes a capital gains tax on investments coming from Mauritius may also weigh on sentiment. Snapping a two-day losing streak, the 30-share Sensex on Thursday rallied 193.2 points or by 0.75 per cent to end at 25,790.22 as investors cheered the approval by the Rajya Sabha to the bankruptcy bill.
Asian stocks were trading mostly lower as oil prices fell and technology shares dropped with Apple sinking to the lowest level since June 2014. China’s Shanghai posted modest gains which were trimmed by fears that policymakers may hold off further stimulus. Hang Seng plunged and Japan’s Nikkei 225 lost over 1 per cent on below par earnings numbers. Wall Street treaded water on Thursday amidst a slide in Apple after Nikkei reported that shipments of iPhone chips for the remainder of 2016 will likely shrink versus a year ago. US jobless claims rose 20,000 to 294,000 in the week ended May 7 to a one-year high, signaling a cooling labour market recovery in the world’s biggest economy.
