Pre Market Report- Bearish opening on the cards for D-Street on global sell-off
12/09/2016
Indian equity benchmarks are likely to witness heavy selling pressure when they open on Monday tracking a slump across markets in Asia as central banks in the world’s biggest economies start to question the benefits of loose monetary policies, curbing risk taking appetite. The CNX Nifty Index Futures for September delivery which were trading at 8,768.5, down by 1.59 per cent or 139 points at 10:46 AM Singapore time, signal that the Sensex may open on a bearish note today. Uncertainty over the outlook for global monetary policies may spur volatility in capital flows in emerging market economies. The focus will be on IIP data and retail inflation numbers to be released today which will offer further cues over the health of Asia’s third biggest economy. India’s industrial production expanded 2.1 per cent, year-on-year in June 2016. Analysts expect industrial output to have risen 1.37 per cent in July 2016 from the year ago. Consumer inflation may have eased to 5.5 per cent in August 2016 from 6.07 per cent in July 2016, retreating below the government’s upper limit of its official inflation target of 4 per cent, plus or minus 2 percentage points, opening the door for an interest rate cut by the RBI in the coming months. Investors this week will also eye the last leg of June quarter earnings with shares of Tata Steel, Coal India, Reliance Communications, Reliance Power, IL&FS Transportation, Reliance Infrastructure, Suzlon NBCC, MMTC, and Unitech to be in focus. Marking a second straight weekly gain, the Sensex rose 0.9 per cent to 28,797.25 last week.
Asian stocks sank today amid jitters over the outlook for monetary policies in some of the world’s biggest economies. Boston Federal Reserve Bank of President Eric Rosengren urged policymakers to tighten interest rates as waiting too long may overheat the US economy. Traders are also weighing Mario Draghi’s surprise decision to play down the prospect for further stimulus in the Euro area. Shanghai Composite was down over 1.6 per cent, Hang Seng lost over 2.4 per cent and Japan’s Nikkei 225 shed over 1.5 per cent as a stronger yen hit exporter stocks. Wall Street slid the most since Britain’s decision to leave the EU, on Friday, with benchmarks sinking over 2 per cent, as a Fed official signaled increasing willingness to hike borrowing costs
12/09/2016
Indian equity benchmarks are likely to witness heavy selling pressure when they open on Monday tracking a slump across markets in Asia as central banks in the world’s biggest economies start to question the benefits of loose monetary policies, curbing risk taking appetite. The CNX Nifty Index Futures for September delivery which were trading at 8,768.5, down by 1.59 per cent or 139 points at 10:46 AM Singapore time, signal that the Sensex may open on a bearish note today. Uncertainty over the outlook for global monetary policies may spur volatility in capital flows in emerging market economies. The focus will be on IIP data and retail inflation numbers to be released today which will offer further cues over the health of Asia’s third biggest economy. India’s industrial production expanded 2.1 per cent, year-on-year in June 2016. Analysts expect industrial output to have risen 1.37 per cent in July 2016 from the year ago. Consumer inflation may have eased to 5.5 per cent in August 2016 from 6.07 per cent in July 2016, retreating below the government’s upper limit of its official inflation target of 4 per cent, plus or minus 2 percentage points, opening the door for an interest rate cut by the RBI in the coming months. Investors this week will also eye the last leg of June quarter earnings with shares of Tata Steel, Coal India, Reliance Communications, Reliance Power, IL&FS Transportation, Reliance Infrastructure, Suzlon NBCC, MMTC, and Unitech to be in focus. Marking a second straight weekly gain, the Sensex rose 0.9 per cent to 28,797.25 last week.
Asian stocks sank today amid jitters over the outlook for monetary policies in some of the world’s biggest economies. Boston Federal Reserve Bank of President Eric Rosengren urged policymakers to tighten interest rates as waiting too long may overheat the US economy. Traders are also weighing Mario Draghi’s surprise decision to play down the prospect for further stimulus in the Euro area. Shanghai Composite was down over 1.6 per cent, Hang Seng lost over 2.4 per cent and Japan’s Nikkei 225 shed over 1.5 per cent as a stronger yen hit exporter stocks. Wall Street slid the most since Britain’s decision to leave the EU, on Friday, with benchmarks sinking over 2 per cent, as a Fed official signaled increasing willingness to hike borrowing costs
