Pre Market Report- Sensex to open tad higher as RBI policy in focus
09/08/2016
Indian equity benchmarks may post slim gains in opening bell on Tuesday tracking a mixed trend in Asian stocks after China’s factory-gate deflation eased for the seventh month on the trot, while caution ahead of the much anticipated RBI policy meet keeps traders on the sidelines. The CNX Nifty Index Futures for August delivery were trading up by 0.05 per cent or 4 points at 8,735, at 10:27 AM Singapore time, a sign that Dalal Street may witness a slight gap up opening today. All eyes will be on Raghuram Rajan who is expected to signal a continued accommodative monetary policy stance while keeping interest rates unchanged in his swansong today, as quickening of inflation over the past three months offers little space for monetary easing. Retail inflation rose to 5.77 percent in June 2016 from 5.76 per cent in May 2016 driven by a jump in food prices. Moreover, consumer inflation is also hovering pretty close to the government’s newly notified upper tolerance limit. Shares of Adani Ports and Special Economic Zone, Adani Power, Indian Overseas Bank, Lupin, United Bank of India and UCO Bank will be in focus as they reveal their June quarter report cards. Meanwhile, telecom firm Idea Cellular’s shares may witness increased selling pressure as traders react to a 74 per cent plunge in its Q1 net profit at Rs 220 crore. Marking a third straight gain, the 30-share Sensex advanced 104.22 points or by 0.37 per cent to near a one-year high at 28,182.57 as quarterly earnings from consumer firms boosted sentiment while foreign fund inflows remained buoyant in the wake of economic optimism following the GST bill nod.
Asian stocks were trading mixed as investors digested China’s inflation data and cheered a rebound in oil to USD 43 per barrel as OPEC chief saw prices bouncing back from a bear market. China’s producer prices fell 1.7 per cent, year on year, in July 2016, marking the smallest decline in nearly two years, while consumer inflation stood at 2 per cent, matching analysts’ estimates. Shanghai Composite rose modestly, Hang Seng fell and Japan’s Nikkei 225 climbed as a weaker yen bolstered the appeal of exporter stocks. Wall Street edged lower on Monday as investors erred on the side of caution ahead of US retail sales data later this week.
09/08/2016
Indian equity benchmarks may post slim gains in opening bell on Tuesday tracking a mixed trend in Asian stocks after China’s factory-gate deflation eased for the seventh month on the trot, while caution ahead of the much anticipated RBI policy meet keeps traders on the sidelines. The CNX Nifty Index Futures for August delivery were trading up by 0.05 per cent or 4 points at 8,735, at 10:27 AM Singapore time, a sign that Dalal Street may witness a slight gap up opening today. All eyes will be on Raghuram Rajan who is expected to signal a continued accommodative monetary policy stance while keeping interest rates unchanged in his swansong today, as quickening of inflation over the past three months offers little space for monetary easing. Retail inflation rose to 5.77 percent in June 2016 from 5.76 per cent in May 2016 driven by a jump in food prices. Moreover, consumer inflation is also hovering pretty close to the government’s newly notified upper tolerance limit. Shares of Adani Ports and Special Economic Zone, Adani Power, Indian Overseas Bank, Lupin, United Bank of India and UCO Bank will be in focus as they reveal their June quarter report cards. Meanwhile, telecom firm Idea Cellular’s shares may witness increased selling pressure as traders react to a 74 per cent plunge in its Q1 net profit at Rs 220 crore. Marking a third straight gain, the 30-share Sensex advanced 104.22 points or by 0.37 per cent to near a one-year high at 28,182.57 as quarterly earnings from consumer firms boosted sentiment while foreign fund inflows remained buoyant in the wake of economic optimism following the GST bill nod.
Asian stocks were trading mixed as investors digested China’s inflation data and cheered a rebound in oil to USD 43 per barrel as OPEC chief saw prices bouncing back from a bear market. China’s producer prices fell 1.7 per cent, year on year, in July 2016, marking the smallest decline in nearly two years, while consumer inflation stood at 2 per cent, matching analysts’ estimates. Shanghai Composite rose modestly, Hang Seng fell and Japan’s Nikkei 225 climbed as a weaker yen bolstered the appeal of exporter stocks. Wall Street edged lower on Monday as investors erred on the side of caution ahead of US retail sales data later this week.
