INDIAN BENCHMARKS are likely to witness negative opening as the global cues look unsupportive with SGX Nifty trading 81.50 points lower. Indian equity benchmarks are likely to witness a gap down opening on Wednesday tracking a bearish trend across Asia as traders weigh a cutback of global economic growth forecasts by the International Monetary Fund (IMF) amidst an ongoing China slowdown, and a continued oil price collapse, souring the appetite for riskier assets. Indian shares rose on Tuesday, snapping a three-session losing streak as beaten-down banking and financial stocks and Reliance Industries recovered, while sentiment was also supported by hopes for stimulus measures in China. The S&P BSE Sensex and CNX Nifty ended 1.21%-1.14% higher each.
Headlines for the day:
IDFC keen to purchase RBS' corporate banking portfolio
ITC's Sunfeast Yippee nears Rs1,000-crore mark
Ashok Leyland arm Optare targets to double e-bus range
Global Indices:
Asian shares plunged on Wednesday as oil fell below the USD 28 per barrel and the IMF lowered its global economic outlook, fueling a flight to safe haven assets and prompting an exit from risky assets.
China’s Shanghai Composite fell for the first time in three days led by a drop in shares of commodity producers amid worries that a slowing economy may erode profits.
Hang Seng plunged over 3 per cent and Japan’s Nikkei 225 tanked over 2 per cent to almost a one-year low as a stronger yen curbed the lure for exporter stocks.
Wall Street posted a mixed finish on Tuesday amidst optimism that China may do more to stem a slowdown after the economy grew at 6.9 per cent in 2015, the weakest pace since 1990 while Q4 growth slowed to 6.8 per cent.
Oil’s slide to a fresh 12-year low weighed on sentiment as the IEA cut the outlook for global crude demand in 2016, fueling concerns over a supply glut.
US stocks closed mixed Tuesday, stabilizing after a sharply lower start to the year despite pressure from a fresh decline in oil prices.
The S&P 500 held above key technical level, its August low of 1,867. The Dow Jones Industrial Average advanced 0.17 per cent; the Nasdaq Composite fell 0.26 per cent while S&P 500 closed up 0.05 per cent.
RESULT’S ON 20TH JAN 2016 : AXISBANK, DHFL, GATI, ULTRATECHMO, RELINFRA, IBULHSGFIN, JSWENERGY, TATATAELXSI
Trend in FII flows:
The FIIs were net sellers of Rs -857.70 Cr in the cash segment on Tuesday while the DIIs were net buyers of Rs 1386.83 Cr, as per the provisional figures released by the NSE.
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