Sensex Poised for Weak Opening Amid Lower Asian Markets
Indian markets are poised to open sharply lower amid weak Asian stocks. The Nifty futures on the Singapore index were trading 1 per cent lower at 7,521, indicating a weak opening for Sensex and Nifty.
Indian markets are poised to open sharply lower amid weak Asian stocks. The Nifty futures on the Singapore index were trading 1 per cent lower at 7,521, indicating a weak opening for Sensex and Nifty.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
Here is a 10-point cheat-sheet
1) Asian markets were mostly lower today with China's Shanghai Composite falling 1.4 per cent.
2) The rupee would be closely watched today. The Indian currency fell to 66.92/dollar against Friday's close of 66.63. The US reported strong job numbers for December, a development that could lead to a broad rise in dollar amid expectations of a Fed rate hike in March.
3) A tumble in Chinese markets had led to a global selloff last week with Nifty slumping 4.5 per cent during the week.
4) Foreign investors sold Indian stocks worth nearly Rs 3,000 crore last week on a net basis, weighing on Indian markets.
5) Domestic institutional investors bought Indian equities worth nearly Rs 1,350 crore providing some support.
6) Market analysts don't rule out the possibility of Nifty slumping to 7,300 levels, driven primarily by global concerns, particularly depreciation of Chinese currency yuan and worries about China's economy.
7) However, Indian markets could rebound sharply, they say, if third-quarter earnings of Indian corporates surprise on the upside and there are positive developments on the GST front.
8) TCS reports its Q3 earnings tomorrow, kicking off the results season.
9) However, some analysts suggest Indian investors accumulate stocks from a long-term perspective taking advantage of the current market volatility. The turmoil in Chinese markets could drive inflows into India, which remains a positive story among emerging markets, they say.
10) "It is the perfect time for buying India (Indian equities). Because if ever there has been a case for India outperforming China, it is now," said Sanjiv Bhasin, executive vice president for markets & corporate affairs at India Infoline. (Read here)
Story first published on: January 11, 2016 08:30 (IST)