Thursday, September 29, 2016

Bearish start on global mayhem

Stock Tips

Indian Indices:

Indian equity benchmarks are likely to witness a negative opening on Friday tracking a bearish trend across markets in Asia and a negative finish at Wall Street overnight as mounting worries that German lender Deutsche Bank’s woes may spread into the global financial sector curbed risk taking appetite.

Losses in the SGX Nifty Index Futures for October delivery which were trading at 8,592.5, down by 0.60 per cent or 51.5 points at 10:40 AM Singapore time, signal that the Sensex may open lower today.

Meanwhile, worries over the escalation of tensions between India and Pakistan after Wednesday night’s surgical strikes by the Indian Army in Pakistan Occupied Kashmir may also keep trading sentiment jittery at Dalal Street.

Caution may also prevail ahead of the RBI’s monetary policy review on Tuesday, which will be the first meeting to be chaired by new governor Urjit Patel with investors hoping for a 25 bps interest rate cut amid the recent drop in inflation.

Marking the biggest single-day fall in three months, the 30-share Sensex plummeted by 465.28 points or by 1.64 per cent to 27,827.53 amid the September derivative expiry and as news of the Indian Army conducting surgical strikes across the Line of Control in Pakistani territory led investors to shun risky assets as tension between the two neighbouring countries mounted.

Global Market:

Asian stocks plunged today as concerns over Deutsche Bank’s finances led to a sell-off in financial shares worldwide as investors braced for a hit to the global financial system.

While Shanghai Composite was trading with modest gains, Hang Seng plunged over 1.4 per cent and Nikkei 225 tumbled over 1.5 per cent as Japanese consumer prices declined for a sixth straight month in August and as a stronger yen curbed the lure for exporter stocks.

Fears of a fresh contagion in the global banking sector weighed heavily on Wall Street on Thursday as US stocks took quite a beating. Shares of Deutsche Bank hit a record low in the US as reports surfaced that some hedge funds were moving to reduce their financial exposure to the bank.

Major Headlines of the day:
Alkem Laboratories gets US FDA observations on Daman plant
Accenture Q4FY16: Strong results, sentimentally positive for Indian IT incumbents
Sintex approves demerger of custom moulding, prefab biz

Trend in FII flows: The FIIs were net buyers of Rs 3413.37 Cr in the cash segment on Thursday while the DIIs were net buyers of Rs 1630.88 Cr, as per the provisional figures.

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