Pre Market Report - Gap up opening seen for Dalal Street on economic optimism
20/07/2016
Indian equity benchmarks are likely to witness a positive opening on Wednesday as an increasingly optimistic outlook for Asia’s third biggest economy amidst easing concerns over the health of PSU lenders following significant capital infusion by the government bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.13 per cent or by 11 points to 8,566 at 10:32 AM Singapore time, signal that Dalal Street may open higher today. The Modi government has decided to infuse Rs 22,915 crore into 13 PSU banks including Canara Bank, State Bank of India, Punjab National Bank and Indian Overseas Bank for helping them enhance lending operations and enable them to raise more money from the market. The centre’s capital infusion decision comes as huge relief for state-run banks which have been grappling with a massive toxic asset pile and were in dire need of capital. Continued optimism over the passage of the crucial Goods and Services Tax (GST) bill in the ongoing monsoon session of the Parliament and good progress in the south-west monsoon rains may also support sentiment at Dalal Street. Shares of Wipro may witness some selling pressure after the IT major in after-market hours on Tuesday reported a weak Q1 report card with consolidated net profit falling by 8.3 per cent sequentially to Rs 2,051.9 crore while its guidance for revenue growth from IT services in Q2 at 0.01-1 per cent, was also a massive disappointment. The 30-share Sensex on Tuesday advanced by 40.96 points or by 0.15 per cent to end at 27,787.62 led by gains in banks after the government’s decision to infuse capital into PSU lenders.
Asian stocks were trading mixed as a global rally faltered as investors weighed prospects for global economic growth after the IMF cut its forecast for growth in the world economy this year to 3.1 per cent from 3.2 per cent earlier. China’s Shanghai Composite was trading tad lower, Hang Seng rose while Japan’s Nikkei 225 retreated as traders indulged in profit taking after a recent handsome rally. Most US stocks ended in the red on Tuesday with benchmark S&P 500 slipping from a record high as mixed corporate earnings data weighed on sentiment. The losses at Wall Street were curbed by upbeat US housing data with starts rising 4.8 per cent to a 1.19 million annualized rate in June, the most since February
20/07/2016
Indian equity benchmarks are likely to witness a positive opening on Wednesday as an increasingly optimistic outlook for Asia’s third biggest economy amidst easing concerns over the health of PSU lenders following significant capital infusion by the government bolsters risk taking appetite. Gains in the CNX Nifty Index Futures for July delivery, which climbed by 0.13 per cent or by 11 points to 8,566 at 10:32 AM Singapore time, signal that Dalal Street may open higher today. The Modi government has decided to infuse Rs 22,915 crore into 13 PSU banks including Canara Bank, State Bank of India, Punjab National Bank and Indian Overseas Bank for helping them enhance lending operations and enable them to raise more money from the market. The centre’s capital infusion decision comes as huge relief for state-run banks which have been grappling with a massive toxic asset pile and were in dire need of capital. Continued optimism over the passage of the crucial Goods and Services Tax (GST) bill in the ongoing monsoon session of the Parliament and good progress in the south-west monsoon rains may also support sentiment at Dalal Street. Shares of Wipro may witness some selling pressure after the IT major in after-market hours on Tuesday reported a weak Q1 report card with consolidated net profit falling by 8.3 per cent sequentially to Rs 2,051.9 crore while its guidance for revenue growth from IT services in Q2 at 0.01-1 per cent, was also a massive disappointment. The 30-share Sensex on Tuesday advanced by 40.96 points or by 0.15 per cent to end at 27,787.62 led by gains in banks after the government’s decision to infuse capital into PSU lenders.
Asian stocks were trading mixed as a global rally faltered as investors weighed prospects for global economic growth after the IMF cut its forecast for growth in the world economy this year to 3.1 per cent from 3.2 per cent earlier. China’s Shanghai Composite was trading tad lower, Hang Seng rose while Japan’s Nikkei 225 retreated as traders indulged in profit taking after a recent handsome rally. Most US stocks ended in the red on Tuesday with benchmark S&P 500 slipping from a record high as mixed corporate earnings data weighed on sentiment. The losses at Wall Street were curbed by upbeat US housing data with starts rising 4.8 per cent to a 1.19 million annualized rate in June, the most since February
