 "Sensex slumps over 300 points tracking global cues; bluechip shares fall")
Markets have extended losses with Sensex and Nifty dropping by 1% each weighed down by banks, auto and IT shares.
By 11:15 am, the S&P BSE Sensex slumped nearly 350 points at 26,378 and the Nifty50 dropped 112 points to trade at 8,094 levels. Among broader markets, BSE Midcap and Smallcap indices are down 0.2%-0.3%.
Top losers from the Sensex pack are ICICI Bank, Maruti Suzuki, ITC, NTPC and Bharti Airtel, all falling between 2%-3%.
Shares of all three listed associate banks of State Bank India (SBI) have moved higher by up to 20% for the second straight trading session, after the Union Cabinet on Wednesday gave a go-ahead to the merger of five associate lenders and Bharatiya Mahila Bank with the SBI.
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Updated at 9:35 am
Markets have erased yesterday’s gain and have commenced lower as the US Federal Reserve kept interest rates unchanged.
However, the central bank signaled that there may be two rate increases this year, saying it expects the US job market to strengthen after a recent slowdown.
By 9:35 am, the S&P BSE Sensex slumped 229 points at 26,497 and the Nifty50 dropped 74 points to trade at 8,174. Among broader markets, BSE Midcap and Smallcap indices are down 0.2% each.
"Yesterday’s upswing towards 8,232 (projected target being 8,244) was not surprising, but for today, it would be more challenging to play the drop that is anticipated from this region. The downside objective is estimated as 8,065/43, but such move is likely to be more volatile that directional. However, a direct fall below 8,000 could significantly dilute the prospects of near term upsides. Meanwhile, such an outcome would still not signal the end of broad uptrend prospects, with 7,700 region seen as a floor, for the medium term," adds Geojit BNP Paribas in its technical report.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 108.23 crore yesterday, 15 June 2016, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks dropped with Japanese stocks falling behind their peers after the Bank of Japan (BoJ) kept monetary policy steady as was widely expected. US stocks ended lower yesterday marking a fifth session of losses, after the US Federal Reserve left interest rates unchanged and backed off an aggressive stance on future rate hikes.
The US Federal Reserve after a conclusion of two-day meeting yesterday, 15 June 2016, left interest rates unchanged and signaled it's likely to take an even slower approach on raising the cost of borrowing against a backdrop of slower US job creation and fresh worries about economic events abroad. The Fed trimmed its estimate of US growth in 2016 to 2% from 2.2%, but left its long-run forecast intact. The Fed also tempered its future expectations for the economy.
The central bank indicated it will raise rates three times apiece in 2017 and 2018 instead of four. And in the long run, the FOMC predicts the Fed-funds rate would rise to 3% instead of 3.3%. Fed officials also expect the labor market to show more improvement, with the unemployment rate remaining below 5% for the next three years.
Yellen also expressed concern in a press conference after the Fed meeting about the low level of US business investment and said that vulnerabilities in the global economy remain. She acknowledged the pending UK vote on 23 June 2016, known as Brexit, on whether to leave the European Union was a factor in the Fed's decision to stay its hand.
Back home, ICICI Bank, Maruti Suzuki, Adani Ports, Bajaj Auto and Wipro are down 1%-3%.
Wipro announced the launch of its analytics solution, Data Discovery Platform. The solution provides pertinent business insights across the value chain of an industry through the predefined “apps”. Shares of Wipro are down by 1%.
Mahindra and Mahindra’s truck and buses division aims to double its market share in the heavy commercial vehicles (HCVs) space in the coming two years, besides strengthening its buses business. Stock of M&M is trading marginally positive.
Coal India and NTPC have slipped between 0.4%-1%. NTPC said that pursuant to joint venture agreement dated 16 May 2016 signed with Coal India, a Joint Venture Company in the name of "Hindustan Urvarak & Rasayn Limited", with 50:50 shareholding by NTPC and Coal India has been incorporated on 15 June 2016.
Ujjivan Financial Services has dipped 5% to Rs 372 on the BSE after the Reserve Bank of India (RBI) notified that the aggregate foreign shareholdings in the company has crossed the permissible limit, which means overseas investors will not be able to buy further equity in the company.
With Capital Market input
By 11:15 am, the S&P BSE Sensex slumped nearly 350 points at 26,378 and the Nifty50 dropped 112 points to trade at 8,094 levels. Among broader markets, BSE Midcap and Smallcap indices are down 0.2%-0.3%.
Top losers from the Sensex pack are ICICI Bank, Maruti Suzuki, ITC, NTPC and Bharti Airtel, all falling between 2%-3%.
Shares of all three listed associate banks of State Bank India (SBI) have moved higher by up to 20% for the second straight trading session, after the Union Cabinet on Wednesday gave a go-ahead to the merger of five associate lenders and Bharatiya Mahila Bank with the SBI.
**************************
Updated at 9:35 am
Markets have erased yesterday’s gain and have commenced lower as the US Federal Reserve kept interest rates unchanged.
However, the central bank signaled that there may be two rate increases this year, saying it expects the US job market to strengthen after a recent slowdown.
By 9:35 am, the S&P BSE Sensex slumped 229 points at 26,497 and the Nifty50 dropped 74 points to trade at 8,174. Among broader markets, BSE Midcap and Smallcap indices are down 0.2% each.
"Yesterday’s upswing towards 8,232 (projected target being 8,244) was not surprising, but for today, it would be more challenging to play the drop that is anticipated from this region. The downside objective is estimated as 8,065/43, but such move is likely to be more volatile that directional. However, a direct fall below 8,000 could significantly dilute the prospects of near term upsides. Meanwhile, such an outcome would still not signal the end of broad uptrend prospects, with 7,700 region seen as a floor, for the medium term," adds Geojit BNP Paribas in its technical report.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 108.23 crore yesterday, 15 June 2016, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks dropped with Japanese stocks falling behind their peers after the Bank of Japan (BoJ) kept monetary policy steady as was widely expected. US stocks ended lower yesterday marking a fifth session of losses, after the US Federal Reserve left interest rates unchanged and backed off an aggressive stance on future rate hikes.
The US Federal Reserve after a conclusion of two-day meeting yesterday, 15 June 2016, left interest rates unchanged and signaled it's likely to take an even slower approach on raising the cost of borrowing against a backdrop of slower US job creation and fresh worries about economic events abroad. The Fed trimmed its estimate of US growth in 2016 to 2% from 2.2%, but left its long-run forecast intact. The Fed also tempered its future expectations for the economy.
The central bank indicated it will raise rates three times apiece in 2017 and 2018 instead of four. And in the long run, the FOMC predicts the Fed-funds rate would rise to 3% instead of 3.3%. Fed officials also expect the labor market to show more improvement, with the unemployment rate remaining below 5% for the next three years.
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Yellen also expressed concern in a press conference after the Fed meeting about the low level of US business investment and said that vulnerabilities in the global economy remain. She acknowledged the pending UK vote on 23 June 2016, known as Brexit, on whether to leave the European Union was a factor in the Fed's decision to stay its hand.
Back home, ICICI Bank, Maruti Suzuki, Adani Ports, Bajaj Auto and Wipro are down 1%-3%.
Wipro announced the launch of its analytics solution, Data Discovery Platform. The solution provides pertinent business insights across the value chain of an industry through the predefined “apps”. Shares of Wipro are down by 1%.
Mahindra and Mahindra’s truck and buses division aims to double its market share in the heavy commercial vehicles (HCVs) space in the coming two years, besides strengthening its buses business. Stock of M&M is trading marginally positive.
Coal India and NTPC have slipped between 0.4%-1%. NTPC said that pursuant to joint venture agreement dated 16 May 2016 signed with Coal India, a Joint Venture Company in the name of "Hindustan Urvarak & Rasayn Limited", with 50:50 shareholding by NTPC and Coal India has been incorporated on 15 June 2016.
Ujjivan Financial Services has dipped 5% to Rs 372 on the BSE after the Reserve Bank of India (RBI) notified that the aggregate foreign shareholdings in the company has crossed the permissible limit, which means overseas investors will not be able to buy further equity in the company.
With Capital Market input