9:15 am Market Opening:
Equity benchmarks rebounded quite strongly, majorly led by short coverying after previous day’s rout. The Sensex climbed 308.79 points or 1.20 percent to 26050.35 and the Nifty rose 94.30 points or 1.21 percent to 7903.30.
About 488 shares have advanced, 371 shares declined, and 33 shares are unchanged on the BSE.
9:05 am Market in Pre-Opening: The Sensex gained 45 points at 25,787 and the Nifty rose 72 points to 7878 in pre-opening session after yesterday’s rout led by global fall.
The rupee also extended recovery to 66.41 a dollar, up 23 paise over 66.65 a dollar seen in previous session.
9:00 am Rupee recovers: The Indian rupee recouped some yesterday’s losses in early trade Tuesday. The currency has opened at 66.55 a dollar, up 10 paise compared to 66.65 a dollar in previous session.
8:59 am: Market Outlook: Indian markets signals gap up opening on back of moody comments on Indian economy and recover seen in the Asian markets. The positive outlook on the rating reflects Moody’s view that recent and proposed policies will stabilize inflation, improve the regulatory environment, increase infrastructure investment and lower government debt ratios. Tracking the momentum, the index may trade above level of 8000 in trade today, says Mehta Equities.
8.55 am: A lot of analysts are cautioning that if a bounceback comes through today, it may be short-lived and that the short-term trend has broken down. “This remains a sell-on-every-rise markets,” they say.
8.50 am: Here’s some information for traders. “The Nifty has immediate support at 7,752,” says an expert from brokerage firm CLSA. If it breaks, he says the next support lies around 7,350.
8.45 am: With 15 minutes to go for the Indian market’s pre-opening trade to start (and half an hour for actual trading), the Singapore-based SGX Nifty is now up 1.35 percent, or 106 points, to 7,902.
For those who may not know, the SGX Nifty reflects futures traded on the Indian Nifty in the Singapore market.
8.40 am: Glenmark Pharma, United Breweries, SpiceJet, Crompton Greaves and IOC will remain in news today. Here’s why .
8.35 am: A short covering is coming through in the very immediate term, says CNBC-TV18’s Anuj Singhal, “but don’t get trapped”. Watch his take .
8.30 am: Despite the brutal fall in Indian markets, most analysts have been positive on the medium term outlook for local shares, as they expect economy and earnings to gradually pick up.
They do make it clear that in the short run, stocks will not move along with global trends if an equity rout takes place everywhere else.
8.25 am: The recent developments in global financial markets have at least brought along some bit of good news for investors: the US Federal Reserve, which was likely to hike interest rates for the first time in eight years (at its September meeting) is unlikely to do so now, says legendary PE investor Wilbur Ross.
In an interview with CNBC-TV18, Ross said a lot of markets, such as Japan, are now looking cheap and that it was now a good time to add stocks to portfolio.
8.20 am: The Indian rupee closed at 66.65 per US dollar yesterday, bringing back memories of the brutal 2013 ‘taper tantrum’ that sank it beyond 68. (It must be mentioned that on both occasions, the currency performed better than post peers.)
Social media, of course, is abuzz with jokes.
But CNBC-TV18’s Banking Editor Latha Venkatesh says that the rupee fall could worsen if Asia’s selloff continues. Watch video here .
8.15 am: The sell-off in Indian equities has been rather brutal in the past few weeks, with the Nifty retracing from nearly 9,000 to about 7,800.
Here are 12 stocks that have fared the worst in 2015 .
8.10 am: We’ll also tune in to what the big voices have to see about yesterday’s sell-off and what can be expected ahead.
First, Allianz’s chief economic advisor, Mohamed El-Erian, who says the Monday will continue until one of two things happen: emerging markets put in place a policy circuit breaker or prices fall low enough to bring buyers back.
“Low enough means a lot lower than here because they’ve been inflated well beyond fundamentals by central bank policies, so in order to bring people back in you’ve got to overshoot the fundamentals on the down side to induce people back in,” he told CNBC’s Squawk Box.
Read more here .
8.05 am: Some more cues coming in now. Dow futures have now opened up 2 percent, signalling the worst of global equities may be behind for now.
In other asset classes, the US dollar is up 0.4 percent. Gold and crude oil are up marginally. Base metals, too, are seeing some bounceback, according to Kitco.
8.00 am: The recovery seems it may show up in Indian shares as well. Singapore’s SGX Nifty, a widely-tracked bogey for Indian shares, is up 2 percent to 7,948.
However, it remains to be seen if a positive start to Indian equities, if it does take place, will sustain.
7.50 am: Appears to be some respite for the region’s equity investors: A lot of Asian markets are now recovering. China is now down 3.2 percent. Japan’s Nikkei is in the green (up 0.1 percent), South Korea’s KOSPI is up in the green too. Hong Kong’s Hang Seng is now up 2.5 percent.
7.45 am: So what exactly is going wrong in China? The country has been undergoing a major slowdown in the past few years, as exports remain muted in the face of weak global growth.
But to make matters worse, the country witnessed two major bubbles — in real estate followed by the stock market — which appear to be now bursting.
Between mid 2014 and mid 2015, the Chinese stock market had risen 150 percent, and has now given back more than half half of its gains.
7.40 am: Here’s some early bad news: China opened 6.5 percent lower again today but has recouped some losses to now trade 3.9 percent lower. Other Asian markets are, however, trading mixed.
7.30 am: Good morning and welcome to the coverage of latest developments in the global financial markets. After yesterday’s mammoth fall in China (8.5 percent down), all of Asian (India fell 6 percent), European and US markets (Dow Jones sank 3.6 percent) sank. It looks to be another bad day for markets today.