Stock Market Today by Shailesh Saraf 25th May 2016
Indian Market Outlook:
US New home sales data which was above its 8 year high displayed the strength in the US economy which increased the likeliness of FED interest rate hike from 25 bps to 50 bps in the scheduled June 15 FED meeting, further confirmation will come if 3 month US treasury yield trades above 36 bps. However, the short term trend would be sell only if Small Cap trades below 5055. Nifty is opening 60 points gap up at 7822 from yesterday's close of 7762 at 8:15 am IST.International Market Outlook
Asian Markets along with European and American peers are trading in green Wednesday morning on the backdrop of an upbeat US home sales data yesterday which displayed inherent strength in the US economy coming back above the pre 2008 levels. The chances of June rate hike are increased further. Markets would eye Fed Chair Janet Yellen's speech, who is also due to speak on Friday, which is also the concluding day for the Ise-Shima G7 Summit being held in Japan. Once the G7 summit is out of the way, markets will be focusing whether Tokyo may look to postpone a sales tax hike and implement fiscal stimulus steps. Elsewhere, "Brexit" themes continued to sway the pound, which soared overnight when the latest poll showed strong support for Britain to remain in the European Union.