INDIAN EQUITY MARKET OUTLOOK - 09 SEP 2016

Markets may witness subdued start as ECB disappoints

Indian Indices:

Indian markets are likely to witness a gap down opening on Friday tracking a mostly bearish trend across markets in Asia and a negative finish at Wall Street overnight as the European Central Bank (ECB) played down the need for further monetary stimulus despite clear signs that the recovery in the 19-member Euro area economy may be faltering, curbing risk taking appetite.

The Frankfurt-based central bank on Thursday refrained from expanding its QE program while leaving key interest rates unchanged.

Shares of Coal India maybe in focus today as it reveals its earnings for the April-June 2016 quarter. SAIL may come under selling pressure today as the company in after-market hours on Thursday reported a net loss of Rs 534.92 crore in the first quarter ended June 30, 2016, from Rs 248.24 crore in the year-ago perio

The 30-share Sensex on Thursday closed at 29,045.28, a 17-month high, up by 118.92 points or by 0.41 per cent driven by buying in auto and realty sectors.

Global Market:

Most Asian shares retreated as the ECB downplayed the prospect of a boost in asset purchases even in the wake of heightened uncertainty surrounding the Euro area economy which could be severely hit by Britain’s exit from the EU.

Shanghai Composite was tad lower as China’s factory-gate prices fell 0.8 per cent in August 2016, year-on-year while consumer inflation at 1.3 per cent was subdued.

Hang Seng rose and Japan’s Nikkei 225 fell as ECB refrained from committing to further stimulus and amid speculation that North Korea conducted a nuclear test.

US stocks fell on Thursday as a surge in oil prices was overshadowed by ECB disappointment.

Major Headlines of the day:

• ·  Maruti Suzuki board will consider stock split proposal.
• · Pfizer appeals in Delhi high court against Sun Pharma and Cadila.
• ·  RComm close to sell stake in tower business to Brookfield.

 Trend in FII flows: The FIIs were net buyers of Rs 111.41 Cr in the cash segment on Thursday while the DIIs were net sellers of Rs -587.43 Cr, as per the provisional figures.

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