Pre Market Report- Dalal Street may open with mild gains amid Asia rally 27/07/2016
Indian equity benchmarks are likely to open on a positive note on Wednesday tracking solid gains across markets in Asia as traders worldwide await the outcome of the US Federal Reserve’s two-day policy meet concluding today and bet on increased stimulus in Japan bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery which advanced by 0.12 per cent or 10.5 points at 8,601.5 at 10:29 AM Singapore time, signal that Dalal Street may open higher today. However, the gains at local bourses may be curbed by fresh uncertainty surrounding the fate of the crucial GST bill as state finance ministers were unable to reach a consensus on the rate of taxation, weighing on the outlook for Asia’s third biggest economy. Volatility may remain high at domestic indices as traders roll over their positions ahead of the July futures & options (F&O) contracts’ expiry on Thursday. Shares of Bajaj Auto, Dabur India, HDFC, JSW Steel and Yes Bank will be in focus amid the announcement of their April-June quarter earnings today. The 30-share Sensex on Tuesday fell by 118.82 points or by 0.42 per cent at 27,976.52 as investors resorted to profit booking on GST caution and a mixed bag of corporate earnings.
Asian stocks advanced ahead of the Fed interest rate decision with the world’s top central bank unlikely to raise borrowing costs. China’s Shanghai Composite and Hang Seng rose while Japan’s Nikkei 225 surged by over 1 per cent as a weaker yen bolstered the appeal of exporter stocks, as speculation that the Bank of Japan will ease policy this week rose. Wall Street ended little changed on Tuesday as traders weighed earnings numbers from the likes of McDonald’s and Caterpillar while awaiting the Fed policy verdict. US new home sales rose to the highest level since February 2008, up 3.5 per cent in June, a sign that the country’s housing market is in good shape.
Indian equity benchmarks are likely to open on a positive note on Wednesday tracking solid gains across markets in Asia as traders worldwide await the outcome of the US Federal Reserve’s two-day policy meet concluding today and bet on increased stimulus in Japan bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery which advanced by 0.12 per cent or 10.5 points at 8,601.5 at 10:29 AM Singapore time, signal that Dalal Street may open higher today. However, the gains at local bourses may be curbed by fresh uncertainty surrounding the fate of the crucial GST bill as state finance ministers were unable to reach a consensus on the rate of taxation, weighing on the outlook for Asia’s third biggest economy. Volatility may remain high at domestic indices as traders roll over their positions ahead of the July futures & options (F&O) contracts’ expiry on Thursday. Shares of Bajaj Auto, Dabur India, HDFC, JSW Steel and Yes Bank will be in focus amid the announcement of their April-June quarter earnings today. The 30-share Sensex on Tuesday fell by 118.82 points or by 0.42 per cent at 27,976.52 as investors resorted to profit booking on GST caution and a mixed bag of corporate earnings.
Asian stocks advanced ahead of the Fed interest rate decision with the world’s top central bank unlikely to raise borrowing costs. China’s Shanghai Composite and Hang Seng rose while Japan’s Nikkei 225 surged by over 1 per cent as a weaker yen bolstered the appeal of exporter stocks, as speculation that the Bank of Japan will ease policy this week rose. Wall Street ended little changed on Tuesday as traders weighed earnings numbers from the likes of McDonald’s and Caterpillar while awaiting the Fed policy verdict. US new home sales rose to the highest level since February 2008, up 3.5 per cent in June, a sign that the country’s housing market is in good shape.
