INDIAN EQUITY MARKET OUTLOOK-11 JANUARY 2016

Sgx Nifty

INDIAN BENCHMARKS are likely to witness negative opening as the global cues look unsupportive with SGX Nifty trading 44 points lower. Indian equity benchmarks are poised to open lower on Monday as markets in Asia succumbed to a severe sell-off as dismal China inflation data fanned further concerns over the health of the world’s second biggest economy, souring risk taking appetite. The CNX Nifty Index futures for January delivery fell by 0.58 per cent or 44 points at 7,560 at 10:26 am Singapore time, a sign that Dalal Street may witness a bearish opening today.

Headlines for the day:
Zydus Cadila launches copy of Roche’s breast cancer drug Herceptin 
Sun TV: ED charge-sheets Marans in Aircel-Maxis case 
Mphasis: IT rivals, PEs in fray as HP kicks off $1bn exit

Global Indices:
Asian markets slid on Monday after China’s December inflation data disappointed traders, raising fresh fears over Asia’s biggest economy.

Wall Street sank on Friday, marking the worst week since 2011 as China’s continued depreciation of the Yuan threatened to start a global currency war while signaling that the China slowdown was worse than feared.

Traders cast aside a blockbuster December jobs report which showed that employers added nearly 300K jobs while the unemployment rate remained at a seven-year low, lifting the outlook for the world’s biggest economy.

Non-farm payrolls in the US climbed by a whopping 292,000 in December, following an upwardly revised 252,000 gain in November and topping expectations of a 200,000 advance. The Dow Jones Industrial Average plunged 1.02 per cent; the Nasdaq Composite dropped 0.98 per cent while S&P 500 fell 1.08 per cent.

European shares fell on Friday, with lingering worries about China causing a major regional equity index to suffer its worst weekly loss since August 2011.

Trend in FII flows:   The FIIs were net  sellers of  Rs -1236.95 Cr in the cash segment on Friday while the DIIs were net buyers of  Rs 1003.99 Cr, as per the provisional figures released by the NSE.

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