Wednesday 30 September 2015

Rajan Rally Set to Continue, Sensex Poised to Open Higher

BSE Sensex and Nifty are likely to open higher, tracking mostly higher Asian markets. The SGX CNX NIFTY was up 0.44 per cent to 7,885.50, indicating a higher start for Indian markets.

Here Are Top 10 Developments:

1) Analysts say that the bigger-than-expected rate cut from Reserve Bank of India chief Raghuram Rajan has turned the sentiment in domestic markets positive in the short term.

2) However, Indian markets are likely to see selling pressure at higher levels, say analysts. 8050 to 8100 levels are likely to be the resistance level for Nifty, they say.

3) Bihar (state) elections and upcoming results season will make investors cautious in the near term, analysts say.

4) Selling pressure from foreign investors is also likely to keep a cap on gains. Foreign investors have so far this month have sold (net) nearly Rs 6,000 crore worth of Indian equities.

5) Rate sensitive banking, auto and realty stocks are likely to be in also in focus today after the RBI's rate cut. These stocks had outperformed the markets yesterday, buoyed by the rate cut.

6) Metal and oil & gas stocks are also likely to see some value-buying today after their recent selloff. Prices of copper, which is seen as a benchmark for commodity demand, ticked higher in domestic markets yesterday.

7) The value of the rupee would also closely watched. The rupee ended at 65.96/dollar on Tuesday against its previous close of 66.04.

8) Most Asian stock markets were steady on Wednesday after sliding to 3-year lows but a weak outlook for commodities and persistent concerns about China's economy discouraged most buyers.

9) Japan's Nikkei was up 1.8 per cent while China's Shanghai Composite rose 0.40 per cent.

10) US stocks ended higher after a volatile session on Tuesday as concerns about the health of the global economy kept investors cautious after more than a month of turbulence. The Dow Jones industrial average rose 0.3 per cent to end with 16,049.13 points and the S&P 500 gained 0.12 per cent to 1,884.09. The Nasdaq Composite dropped 0.59 percent to 4,517.32.

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