Bulls eye wide open on Dalal Street
Indian equity benchmarks are set to witness a gap up opening on Thursday tracking a firm trend across markets in Asia and a bullish finish at Wall Street overnight as jitters over the economic fallout from Britain’s vote to exit from the EU calmed amid optimism that global central banks may step up support to financial markets, bolstering risk taking appetite.
Gains in the CNX Nifty Index Futures for June delivery climbed by 0.61 per cent or by 50 points to 8,258 at 10:35 AM Singapore time signaling that Dalal Street may open higher today. However, volatility may remain high at the local bourses as traders roll over their positions ahead of the expiry of the June Futures & Options (F&O) contracts today.
Marking a third straight rally, the 30-share Sensex surged by a whopping 215.84 points or by 0.81 per cent on Wednesday to end at 26,740.39, the biggest single day percentage gain in two weeks after the Cabinet gave nod to a pay hike for government employees
Global stocks rebounded after Brexit concerns softened. Speculation that central banks worldwide may act if required in the aftermath of Brexit boosted Asian equities today. While the Federal Reserve is unlikely to raise interest rates in the coming months, other central banks have pledged to boost stimulus to restore confidence in financial markets and support economic recovery.
China’s Shanghai Composite logged modest gains, Hang Seng jumped nearly 2 per cent and Japan’s Nikkei 225 advanced as Brexit concerns receded and Bank of Japan Chief Haruhiko Kuroda asserted that more funds can be injected into the market if needed.
Wall Street marked its biggest two-day jump in four months on Wednesday as worries over the fallout of Brexit on the global economy eased.
Major Headlines of the day:
• Natural rubber climbs 12-15% in June 2016 to a 2-month high
• Axis Bank may tie up with Wells Fargo and/or others in Fintech
• Bharti Airtel’s promoter suggests high possibility of pressure on tariff
Trend in FII flows: The FIIs were net buyers of Rs 102.91 Cr in the cash segment on WEDNESDAY while the DIIs were net sellers of Rs -20.19 Cr, as per the provisional figures.