Pre Session: Indian stocks may extend slide on Fed, Brexit jitters
15/06/2016
Indian benchmark indices are likely to continue their losing spree on Wednesday as traders would remain wary ahead of key central-bank meetings this week and the UK’s upcoming referendum on exiting the EU. The market may witness risk-off trade as investors grappled with mixed signals from falling oil prices to rising inflation due to a lag between good rainfalls. Losses in the CNX Nifty Index Futures for June delivery which declined by 11 points to 8,106.50 at 10:34 AM Singapore time also signal that Dalal Street may open lower today.
On Tuesday, the Indian stocks ended on a flat note in a volatile trade as caution prevailed in market ahead of the US Fed meeting this week and the Brexit referendum next week. However, gains in financial space capped day’s losses after the RBI eased the stressed asset restructuring rules. The BSE SENSEX closed flat at 26395.71, down by 1.06 points, and the NSE Nifty ended at 8108.85, down by 1.75 points, or by 0.02 per cent.
On the global front, most of the Asian markets rebounded on Tuesday, except Hang Seng where stocks edged lower, ahead of the Chinese data on factory output and retail sales followed by US and Japanese central bank meeting lined up this week. China’s Shanghai Composite rose 0.5 per as investors hoped that Morgan Stanley Capital International (MSCI) would include Chinese-listed stocks, or so-called A-shares, in its widely tracked Emerging Markets Index. Japan’s Nikkei 225 was also trading 0.6 per cent higher as the yen weakned slightly versus the US dollar on Tuesday. In the overnight trade, Wall Street ended lower as caution prevailed ahead of the UK’s upcoming referendum on exiting the EU, while beginning of the Federal Reserve’s two-day policy meeting also dragged stocks lower.
15/06/2016
Indian benchmark indices are likely to continue their losing spree on Wednesday as traders would remain wary ahead of key central-bank meetings this week and the UK’s upcoming referendum on exiting the EU. The market may witness risk-off trade as investors grappled with mixed signals from falling oil prices to rising inflation due to a lag between good rainfalls. Losses in the CNX Nifty Index Futures for June delivery which declined by 11 points to 8,106.50 at 10:34 AM Singapore time also signal that Dalal Street may open lower today.
On Tuesday, the Indian stocks ended on a flat note in a volatile trade as caution prevailed in market ahead of the US Fed meeting this week and the Brexit referendum next week. However, gains in financial space capped day’s losses after the RBI eased the stressed asset restructuring rules. The BSE SENSEX closed flat at 26395.71, down by 1.06 points, and the NSE Nifty ended at 8108.85, down by 1.75 points, or by 0.02 per cent.
On the global front, most of the Asian markets rebounded on Tuesday, except Hang Seng where stocks edged lower, ahead of the Chinese data on factory output and retail sales followed by US and Japanese central bank meeting lined up this week. China’s Shanghai Composite rose 0.5 per as investors hoped that Morgan Stanley Capital International (MSCI) would include Chinese-listed stocks, or so-called A-shares, in its widely tracked Emerging Markets Index. Japan’s Nikkei 225 was also trading 0.6 per cent higher as the yen weakned slightly versus the US dollar on Tuesday. In the overnight trade, Wall Street ended lower as caution prevailed ahead of the UK’s upcoming referendum on exiting the EU, while beginning of the Federal Reserve’s two-day policy meeting also dragged stocks lower.
