Pre Session- Caution to rule D-Street as Brexit vote looms
22/06/2016
Indian equity benchmarks are likely to witness a gap down opening on Wednesday tracking a bearish trend in Asia as traders resort to a cautious approach ahead of the EU referendum tomorrow in which Britain decides whether to remain or opt out of the trade block, curbing risk taking appetite. Investors are on the edge, fearing that a vote to leave could instill global instability that could reverse emerging markets capital flows. As campaigning enters the final day, the odds of Brexit have fallen in recent days with Oddchecker, a popular odds comparison site, putting the probability of leave at about 26 per cent, down from 43 per cent a week ago. Still, Britain’s vote on its EU membership is too close to call, making investors jittery. Losses in the CNX Nifty Index Futures for June delivery which fell by 0.16 per cent or 13.5 points to 8,207 at 10:42 AM Singapore time also signal that Dalal Street may open lower today. However, domestic bourses will be supported by reports of robust progress of the southwesterly monsoon with the IMD saying that the monsoon advanced into parts of Maharashtra, Madhya Pradesh, Bihar and Uttar Pradesh. On Tuesday, the 30-share Sensex slipped by 54.14 points or by 0.20 per cent to end at 26,812.78 led by foreign fund outflows, profit booking in recent gainers ahead of the Brexit vote, and a decline in banking and power stocks.
Asian stocks were trading lower as the campaigning for the UK referendum for remaining or leaving the European Union entered the last day with opinion polls split on the outcome. Meanwhile, Fed Chair Janet Allen struck a cautious tune at a testimony before lawmakers on Tuesday, stressing that she wants the world’s biggest economy on a favourable path before undertaking a decision to hike interest rates further. China’s Shanghai Composite was tad lower, Hang Seng fell and Japan’s Nikkei 225 tumbled by over 1 per cent. Wall Street edged higher on Monday amid expectation that Britain may chose to remain in the EU while energy producers and technology companies provided support.
22/06/2016
Indian equity benchmarks are likely to witness a gap down opening on Wednesday tracking a bearish trend in Asia as traders resort to a cautious approach ahead of the EU referendum tomorrow in which Britain decides whether to remain or opt out of the trade block, curbing risk taking appetite. Investors are on the edge, fearing that a vote to leave could instill global instability that could reverse emerging markets capital flows. As campaigning enters the final day, the odds of Brexit have fallen in recent days with Oddchecker, a popular odds comparison site, putting the probability of leave at about 26 per cent, down from 43 per cent a week ago. Still, Britain’s vote on its EU membership is too close to call, making investors jittery. Losses in the CNX Nifty Index Futures for June delivery which fell by 0.16 per cent or 13.5 points to 8,207 at 10:42 AM Singapore time also signal that Dalal Street may open lower today. However, domestic bourses will be supported by reports of robust progress of the southwesterly monsoon with the IMD saying that the monsoon advanced into parts of Maharashtra, Madhya Pradesh, Bihar and Uttar Pradesh. On Tuesday, the 30-share Sensex slipped by 54.14 points or by 0.20 per cent to end at 26,812.78 led by foreign fund outflows, profit booking in recent gainers ahead of the Brexit vote, and a decline in banking and power stocks.
Asian stocks were trading lower as the campaigning for the UK referendum for remaining or leaving the European Union entered the last day with opinion polls split on the outcome. Meanwhile, Fed Chair Janet Allen struck a cautious tune at a testimony before lawmakers on Tuesday, stressing that she wants the world’s biggest economy on a favourable path before undertaking a decision to hike interest rates further. China’s Shanghai Composite was tad lower, Hang Seng fell and Japan’s Nikkei 225 tumbled by over 1 per cent. Wall Street edged higher on Monday amid expectation that Britain may chose to remain in the EU while energy producers and technology companies provided support.
