Bulls come charging as Bears clear the way-16-Sep-2016

Stock Market Update

Indian Indices:

Indian equity benchmarks are likely to witness a bullish opening on Friday tracking positive trade in Asian markets and a rally at Wall Street overnight as disappointing US industrial output and retail sales data pared back expectations of a Fed interest rate hike, bolstering risk taking appetite.

The CNX Nifty Index Futures for September delivery which were trading at 8,817, up by 0.45 per cent or 39.5 points at 10:40 AM Singapore time, signal that the Sensex may open higher today.

Bank of England on Thursday kept policy unchanged but signaled scope of a further rate cut in November, the Fed will meet next week to decide whether to hike interest rates, while the Bank of Japan could bolster monetary stimulus and slash its key rate deeper into the negative terrain.

Traders will weigh data showing a 0.3 per cent, year-on-year drop in India’s exports to USD 21.5 billion in August 2016. Meanwhile, the rupee which tanked to a two-week low against the US dollar on Thursday, on rumours of devaluation of the currency, will also be in focus.

The 30-share Sensex on Thursday advanced 40.66 points or by 0.14 per cent to 28,412.89 amid hopes that the RBI may cut interest rates next month.

Global Market:

Asian stocks bounced back from a six-week low as worries over a September Fed rate hike eased.

While markets in China and Hong Kong were closed for holidays, Japan’s Nikkei 225 climbed on reduced expectations of the US central bank hiking interest rates next week.

US industrial output fell 0.4 per cent in August from July as factory production declined, while retail sales fell 0.3 per cent last month, the first drop in five months.

US stocks advanced on Thursday driven by gains in Apple Inc. while higher crude prices lifted energy stocks.

Major Headlines of the day:

• PVR looking to raise up to Rs250 crore via issue of NCDs
• PNB raises Rs2112 crore by issuing 16.43 crore equity shares
• Suprajit Engineering acquires US based Wescon Controls for $44.4 mn

Trend in FII flows: The FIIs were net buyers of Rs 345.42 Cr in the cash segment on Thursday while the DIIs were net sellers of Rs -456.91 Cr, as per the provisional figures.

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