Five things that are shaping Wednesday's trade on Dalal Street
As countdown to Fed Chair Janet Yellen's Jackson Hole speech nears, investors scrutinise the key economic data to gauge Fed's next policy stance.
- Aug 24, 2016,
- Updated Aug 24, 2016 10:40 AM IST
Good Morning Business Today readers!
This day marks the anniversary of historic global marketcrash of 2015. Thankfully, the Sensex has recovered over 8 per cent since thenand all sectors barring three have bounced back up to 50 per cent. On Tuesday,mixed data in US called into question the recent hawkish comments by some USFederal Reserve officials. As countdown to Fed Chair Janet Yellen's JacksonHole speech nears, investors scrutinise the key economic data to gauge Fed's nextpolicy stance.
Here is a wrap-up of all this and more updates that you mustknow to start your trading day on Dalal Street:
- A year after Black Monday 2015: August 24, 2015: the daywhen Sensex crashed 1100 points, in the vein of global markets from China,Japan, and Russia to United States. Many predicted it to be a start of a2008-style market carnage, but, one year on, Sensex has jumped over 8 per cent.Capital goods sector and exports-driven IT and pharma sectors have yet to stepback into green terrain, but sectors like metals, oil & gas and realty havebounced back up to 50 per cent since the calamitous fall they witnessed a yearago.
- Mixed data from United States: New home sales in US unexpectedly surged over12 per cent in July, reaching their highest level in nearly nine years amidrobust demand, brightening the housing market outlook. Separately, data firmIHS Markit said its flash US manufacturing purchasing managers' index slippedto a reading of 52.1 in August from July's nine-month high of 52.9. A readingabove 50 indicates expansion in the factory sector.
- Oil prices decline: Oil prices fell on Wednesday as an unexpectedbuild in US crude stocks weighed on markets, along with concerns that Chinesecrude demand could falter as Beijing clamps down on alleged tax evasion in theoil industry. Brent crude oil futures were trading at $49.57 a barrel, down 39cents, or 0.8 per cent, from their last close.
- Gold sits tight: Gold was mostly unchanged on Wednesday asinvestors remained on the sidelines waiting for clues from the Fed later thisweek on whether it will raise rates this year.
- Idea Cellular denies report on merger talks: Shares of Ideagained 7 per cent on Tuesday after a news channel reported that it was inexploratory talks about a merger with larger rival Vodafone India. However, aspokeswoman for Idea's parent, conglomerate Aditya Birla, called the report oftalks between Idea and Vodafone "baseless and absolutely false".
(With inputs from Reuters)
Good Morning Business Today readers!
This day marks the anniversary of historic global marketcrash of 2015. Thankfully, the Sensex has recovered over 8 per cent since thenand all sectors barring three have bounced back up to 50 per cent. On Tuesday,mixed data in US called into question the recent hawkish comments by some USFederal Reserve officials. As countdown to Fed Chair Janet Yellen's JacksonHole speech nears, investors scrutinise the key economic data to gauge Fed's nextpolicy stance.
Here is a wrap-up of all this and more updates that you mustknow to start your trading day on Dalal Street:
- A year after Black Monday 2015: August 24, 2015: the daywhen Sensex crashed 1100 points, in the vein of global markets from China,Japan, and Russia to United States. Many predicted it to be a start of a2008-style market carnage, but, one year on, Sensex has jumped over 8 per cent.Capital goods sector and exports-driven IT and pharma sectors have yet to stepback into green terrain, but sectors like metals, oil & gas and realty havebounced back up to 50 per cent since the calamitous fall they witnessed a yearago.
- Mixed data from United States: New home sales in US unexpectedly surged over12 per cent in July, reaching their highest level in nearly nine years amidrobust demand, brightening the housing market outlook. Separately, data firmIHS Markit said its flash US manufacturing purchasing managers' index slippedto a reading of 52.1 in August from July's nine-month high of 52.9. A readingabove 50 indicates expansion in the factory sector.
- Oil prices decline: Oil prices fell on Wednesday as an unexpectedbuild in US crude stocks weighed on markets, along with concerns that Chinesecrude demand could falter as Beijing clamps down on alleged tax evasion in theoil industry. Brent crude oil futures were trading at $49.57 a barrel, down 39cents, or 0.8 per cent, from their last close.
- Gold sits tight: Gold was mostly unchanged on Wednesday asinvestors remained on the sidelines waiting for clues from the Fed later thisweek on whether it will raise rates this year.
- Idea Cellular denies report on merger talks: Shares of Ideagained 7 per cent on Tuesday after a news channel reported that it was inexploratory talks about a merger with larger rival Vodafone India. However, aspokeswoman for Idea's parent, conglomerate Aditya Birla, called the report oftalks between Idea and Vodafone "baseless and absolutely false".
(With inputs from Reuters)