Pre Session- Dalal Street may open lower on profit booking
01/07/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday as traders resort to profit taking at existing levels after a handsome four-day rally that has driven the 30-share Sensex on the cusp of the 27K mark. Losses in the CNX Nifty Index Futures for July delivery fell by 0.16 per cent or by 13 points to 8,322.50 at 10:24 AM Singapore time signaling that Dalal Street may open on a negative note today. However, a rally across markets in Asia and a bullish finish at Wall Street overnight as the Brexit shock ebbed may support sentiment at Dalal Street. Further, swift progress of the monsoon which has now covered the entire country, optimism over a recovery in corporate earnings, hopes of a pickup in private consumption after the government’s move to hike salaries and pensions of government employees and the centre’s confidence of getting the GST bill passed in the upcoming monsoon session of Parliament have signaled an improved outlook for Asia’s third biggest economy, buoying sentiment at local bourses. Traders today will keep an eye on the auto sales numbers of companies for June while the focus will also be on June manufacturing PMI to be released today. In May, India’s manufacturing index came in at 50.7, tad above the neutral 50-mark. Marking a fourth straight rally, the Sensex on Thursday jumped by 259.33 points or by 0.97 per cent to end at 26,999.72 on the day of the expiry of the June F&O contracts.
Asian stocks extended gains as worries over the fallout of Brexit on the global economy eased after central banks pledged to support financial markets by signaling looser monetary policy, bolstering risk taking appetite. The Bank of England signaled that it may cut interest rates within months to help the British economy, while the US Fed is unlikely to raise interest rates this year and the European Central Bank is pondering considering easing norms for bond purchases in its stimulus program to ensure availability of enough debt in the aftermath of Brexit. China’s Shanghai Composite advanced even as a factory gauge contracted sharply in June, falling to 48.6 from 49.2 in May. Hang Seng was closed today for a holiday and Japan’s Nikkei 225 rallied. US stocks jumped on Thursday, with each of the Dow, Nasdaq and S&P rising over 1.3 per cent as policymakers signaled measures to counter the fallout from Britain’s vote to leave the EU. Traders shrugged off data showing a 10,000 jump in US jobless claims to 268,000 last week.
01/07/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday as traders resort to profit taking at existing levels after a handsome four-day rally that has driven the 30-share Sensex on the cusp of the 27K mark. Losses in the CNX Nifty Index Futures for July delivery fell by 0.16 per cent or by 13 points to 8,322.50 at 10:24 AM Singapore time signaling that Dalal Street may open on a negative note today. However, a rally across markets in Asia and a bullish finish at Wall Street overnight as the Brexit shock ebbed may support sentiment at Dalal Street. Further, swift progress of the monsoon which has now covered the entire country, optimism over a recovery in corporate earnings, hopes of a pickup in private consumption after the government’s move to hike salaries and pensions of government employees and the centre’s confidence of getting the GST bill passed in the upcoming monsoon session of Parliament have signaled an improved outlook for Asia’s third biggest economy, buoying sentiment at local bourses. Traders today will keep an eye on the auto sales numbers of companies for June while the focus will also be on June manufacturing PMI to be released today. In May, India’s manufacturing index came in at 50.7, tad above the neutral 50-mark. Marking a fourth straight rally, the Sensex on Thursday jumped by 259.33 points or by 0.97 per cent to end at 26,999.72 on the day of the expiry of the June F&O contracts.
Asian stocks extended gains as worries over the fallout of Brexit on the global economy eased after central banks pledged to support financial markets by signaling looser monetary policy, bolstering risk taking appetite. The Bank of England signaled that it may cut interest rates within months to help the British economy, while the US Fed is unlikely to raise interest rates this year and the European Central Bank is pondering considering easing norms for bond purchases in its stimulus program to ensure availability of enough debt in the aftermath of Brexit. China’s Shanghai Composite advanced even as a factory gauge contracted sharply in June, falling to 48.6 from 49.2 in May. Hang Seng was closed today for a holiday and Japan’s Nikkei 225 rallied. US stocks jumped on Thursday, with each of the Dow, Nasdaq and S&P rising over 1.3 per cent as policymakers signaled measures to counter the fallout from Britain’s vote to leave the EU. Traders shrugged off data showing a 10,000 jump in US jobless claims to 268,000 last week.
