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Monday, 9 May 2016

INDIAN EQUITY MARKET OUTLOOK - 10 MAY 2016

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INDIAN BENCHMARKS Markets may open lower amid mixed Asia trend
The key domestic benchmarks are likely to witness a gap down opening on Tuesday as investors resort to profit booking after a stellar rally in the previous session while a mixed trend in stock markets across Asia amid weakness in commodity prices may also sour the appetite for risky assets. SGX Nifty is trading 33.50 points lower.

The focus today will be on the stock of Punjab & Sind Bank as the public sector lender unveils its March quarter earnings numbers, with investors keenly eying the Gross and Net NPA levels.

Caution ahead of key macro data to be released on Thursday including March industrial output and April consumer inflation may also weigh on sentiment.

Indian shares rose by 2%, posting their biggest single-day percentage gain in nearly four weeks, as a recent string of positive corporate results raised tentative hopes about an improving domestic economy. The S&P BSE Sensex and CNX Nifty ended 1.82%-1.71% higher each.

Global Markets:
Asian shares got off to a weak start on Tuesday, pressured by weaker crude oil prices, though Japanese shares got a tailwind as the dollar stood tall against the yen.

US stocks ended mixed on Monday as traders weighed dismal China trade data, tumbling oil prices and prospects for increases in US interest rates but sentiment was supported by a rally in health care and consumer stocks

European stock markets gained on Monday, but closed off their best levels after oil prices turned negative.

Major Headlines of the day:
Tata Steel takes seven potential bids for UK assets to next stage of sale process.
Sun Pharma launches app for asthma patients.
ONGC crude oil output up in FY16.

Trend in FII flows:   The FIIs were net  sellers of  Rs -224.40 Cr in the cash segment on Monday while the DIIs were net buyers of  Rs 350.60 Cr, as per the provisional figures.



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