Pre Session-Gap up opening seen for Sensex amidst delayed US rate hike bets
09/05/2016
Indian equity benchmarks are likely to witness a positive opening on Monday as the slowest US jobs growth in seven months in April 2016 raised speculation that the US Federal Reserve may refrain from raising interest rates further in the next few months and stick to its gradual pace of tightening approach, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for May delivery which rose by 0.42 per cent or 32.5 points at 7,781 at 10:14 AM Singapore time also signal that Dalal Street may open higher today. The focus this week will be on key macroeconomic data including industrial output and consumer inflation, and the next batch of quarterly earnings, which may offer fresh cues over the health of Asia’s third biggest economy. Companies such as Nestle, Dr Reddy’s, HUL, Kotak Mahindra Bank, Asian Paints, and PSU banks like Indian Bank, Allahabad Bank will unveil their March quarterly earnings numbers this week while March industrial output data and April consumer inflation are due this Thursday. India’s retail inflation hit a six-month low of 4.8 per cent in March 2016. A good monsoon could boost agricultural output and ease consumer inflation in the coming months, paving the way for a rate cut from the RBI. Further announcements related to the monsoon rains and global trend may also influence the domestic stock markets this week. Marking a second straight week in the red, the 30-share Sensex fell 1.48 per cent last week to end at 25,228.5 while on Friday it closed down by 33.71 points or by 0.13 per cent.
Asian markets were trading mixed even as disappointing US April jobs data raised speculation that the Fed may gradually hike borrowing costs. The world’s biggest economy added 160,000 jobs in April, compared to a revised 208,000 gain in March, and missing estimates for a 200,000 gain. While Hang Seng rose and Japan’s Nikkei 225 advanced as a weaker yen bolstered the lure for exporter stocks, Shanghai Composite plunged as dismal trade data underlined concerns over the health of the world’s second biggest economy with Chinese exports falling 1.8 per cent in dollar terms in April and imports suffering an 18th straight month of decline. Wall Street rallied on Friday as April jobs data put a June rate hike off the table
09/05/2016
Indian equity benchmarks are likely to witness a positive opening on Monday as the slowest US jobs growth in seven months in April 2016 raised speculation that the US Federal Reserve may refrain from raising interest rates further in the next few months and stick to its gradual pace of tightening approach, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for May delivery which rose by 0.42 per cent or 32.5 points at 7,781 at 10:14 AM Singapore time also signal that Dalal Street may open higher today. The focus this week will be on key macroeconomic data including industrial output and consumer inflation, and the next batch of quarterly earnings, which may offer fresh cues over the health of Asia’s third biggest economy. Companies such as Nestle, Dr Reddy’s, HUL, Kotak Mahindra Bank, Asian Paints, and PSU banks like Indian Bank, Allahabad Bank will unveil their March quarterly earnings numbers this week while March industrial output data and April consumer inflation are due this Thursday. India’s retail inflation hit a six-month low of 4.8 per cent in March 2016. A good monsoon could boost agricultural output and ease consumer inflation in the coming months, paving the way for a rate cut from the RBI. Further announcements related to the monsoon rains and global trend may also influence the domestic stock markets this week. Marking a second straight week in the red, the 30-share Sensex fell 1.48 per cent last week to end at 25,228.5 while on Friday it closed down by 33.71 points or by 0.13 per cent.
Asian markets were trading mixed even as disappointing US April jobs data raised speculation that the Fed may gradually hike borrowing costs. The world’s biggest economy added 160,000 jobs in April, compared to a revised 208,000 gain in March, and missing estimates for a 200,000 gain. While Hang Seng rose and Japan’s Nikkei 225 advanced as a weaker yen bolstered the lure for exporter stocks, Shanghai Composite plunged as dismal trade data underlined concerns over the health of the world’s second biggest economy with Chinese exports falling 1.8 per cent in dollar terms in April and imports suffering an 18th straight month of decline. Wall Street rallied on Friday as April jobs data put a June rate hike off the table
