Indian Indices:
Indian equity benchmarks are likely to witness a bearish opening on Thursday tracking weakness across many markets in Asia and a soft finish at Wall Street overnight as traders worldwide stick to a cautious approach ahead of key central bank meetings in Japan and the US next week while a slide in oil prices raised worries over the health of the world economy.
The CNX Nifty Index Futures for September delivery which were trading at 8,750, down by 0.22 per cent or 19.5 points at 10:38 AM Singapore time, signal that the Sensex may open lower today.
Reduced prospects of central bank monetary stimulus from key developed economies coupled with uncertainty surrounding the exact timing of a US interest rate hike may continue to keep sentiment choppy at Dalal Street and may lead to some volatility in capital flows to Asia’s third biggest economy.
Meanwhile, rising expectations of an interest rate cut by the RBI in October after consumer inflation dipped to a five-month low to below the upper tolerance level of the government’s official annual inflation target, in August, may continue to offer support to domestic bourses.
At the same time, wholesale inflation jumped to a two-year high of 3.74 per cent in August 2016 from 3.55 per cent in July 2016.Shares of Reliance Communication maybe in focus as the company said that it will merge its wireless business with Aircel, creating India’s third largest telecom operator by users.
In the wake of continued uncertainty over global monetary outlook, the 30-share Sensex closed flat, with a positive bias on Wednesday, up 18.69 points or by 0.07 per cent at 28,372.23.
Global Market:
Asian stocks retreated for a sixth day as cautioned ruled sentiment ahead of upcoming central bank meetings next week.
Shanghai Composite was closed today, Hang Seng logged modest gains while Japan’s Nikkei 225 sank over 1 per cent as a stronger yen curbed the lure for exporter stocks.
Wall Street ended on a lackluster note on Wednesday with the Dow and S&P 500 witnessing slim to modest losses as traders stayed on the sidelines on monetary policy uncertainty.
Major Headlines of the day:
Ashok Leyland to merge loss making Hinduja Foundries with itself
Bayer AG buys out Monsanto Co (US Parent) for USD 66 bn in an all cash deal
Shriram Transport Finance board Approved and allotted NCDs worth Rs70 cr
Trend in FII flows:The FIIs were net sellers of Rs -477.33 Cr in the cash segment on Wednesday while the DIIs were net sellers of Rs -8.53 Cr, as per the provisional figures.
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