Pre Session-Positive opening likely for Sensex ahead of F&O expiry
30/06/2016
Indian equity benchmarks are set to witness a gap up opening on Thursday tracking a firm trend across markets in Asia and a bullish finish at Wall Street overnight as jitters over the economic fallout from Britain’s vote to exit from the EU calmed amid optimism that global central banks may step up support to financial markets, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery climbed by 0.61 per cent or by 50 points to 8,258 at 10:35 AM Singapore time signaling that Dalal Street may open higher today. However, volatility may remain high at the local bourses as traders roll over their positions ahead of the expiry of the June Futures & Options (F&O) contracts today. With the government expressing confidence of getting the crucial Goods and Services Tax (GST) passed in the upcoming Monsoon Session of the Parliament and the monsoon rains gathering pace, the outlook for Asia’s third biggest economy has improved, supporting sentiment at Dalal Street. Marking a third straight rally, the 30-share Sensex surged by a whopping 215.84 points or by 0.81 per cent on Wednesday to end at 26,740.39, the biggest single day percentage gain in two weeks after the Cabinet gave nod to a pay hike for government employees while global stocks rebounded after Brexit concerns softened.
Speculation that central banks worldwide may act if required in the aftermath of Brexit boosted Asian equities today. While the Federal Reserve is unlikely to raise interest rates in the coming months, other central banks have pledged to boost stimulus to restore confidence in financial markets and support economic recovery. China’s Shanghai Composite logged modest gains, Hang Seng jumped nearly 2 per cent and Japan’s Nikkei 225 advanced as Brexit concerns receded and Bank of Japan Chief Haruhiko Kuroda asserted that more funds can be injected into the market if needed. Wall Street marked its biggest two-day jump in four months on Wednesday as worries over the fallout of Brexit on the global economy eased. Meanwhile, US consumer purchases rose 0.4 per cent in May 2016, cooling from their biggest advance since August 2009 in April, while a gauge measuring pending home sales fell 3.7 per cent last month, signaling concerns over a slowdown in the world’s biggest economy.
30/06/2016
Indian equity benchmarks are set to witness a gap up opening on Thursday tracking a firm trend across markets in Asia and a bullish finish at Wall Street overnight as jitters over the economic fallout from Britain’s vote to exit from the EU calmed amid optimism that global central banks may step up support to financial markets, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for June delivery climbed by 0.61 per cent or by 50 points to 8,258 at 10:35 AM Singapore time signaling that Dalal Street may open higher today. However, volatility may remain high at the local bourses as traders roll over their positions ahead of the expiry of the June Futures & Options (F&O) contracts today. With the government expressing confidence of getting the crucial Goods and Services Tax (GST) passed in the upcoming Monsoon Session of the Parliament and the monsoon rains gathering pace, the outlook for Asia’s third biggest economy has improved, supporting sentiment at Dalal Street. Marking a third straight rally, the 30-share Sensex surged by a whopping 215.84 points or by 0.81 per cent on Wednesday to end at 26,740.39, the biggest single day percentage gain in two weeks after the Cabinet gave nod to a pay hike for government employees while global stocks rebounded after Brexit concerns softened.
Speculation that central banks worldwide may act if required in the aftermath of Brexit boosted Asian equities today. While the Federal Reserve is unlikely to raise interest rates in the coming months, other central banks have pledged to boost stimulus to restore confidence in financial markets and support economic recovery. China’s Shanghai Composite logged modest gains, Hang Seng jumped nearly 2 per cent and Japan’s Nikkei 225 advanced as Brexit concerns receded and Bank of Japan Chief Haruhiko Kuroda asserted that more funds can be injected into the market if needed. Wall Street marked its biggest two-day jump in four months on Wednesday as worries over the fallout of Brexit on the global economy eased. Meanwhile, US consumer purchases rose 0.4 per cent in May 2016, cooling from their biggest advance since August 2009 in April, while a gauge measuring pending home sales fell 3.7 per cent last month, signaling concerns over a slowdown in the world’s biggest economy.
