MARKET WRAP: Sensex zooms 489 pts, Nifty over 11,800; Jet Airways soars 90%

All that happened in the markets today

8:38 AM

Explainer: How trade tensions changed the Fed's outlook in seven weeks

On May 1, the Federal Reserve viewed the American economy as having a solid footing and risks to the outlook were muted.

 

That assessment has weakened demonstrably since, and Fed Chair Jerome Powell and many of his colleagues inside the US central bank on Wednesday signalled readiness to cut interest rates as required to shore up a US economic expansion that appears to be losing steam. READ MORE

8:37 AM

HDFC to acquire Apollo Munich Health Insurance for Rs 1,347 crore

Mortgage lender Housing Development Finance Corporation (HDFC) will acquire controlling stake of 51.2 per cent in Apollo Munich Health Insurance for about Rs 1,347 crore from Apollo Hospitals group and few employees who hold stake in the standalone health insurer. After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of mortgage lender HDFC Ergo. The deal is subject to regulatory approvals and the entire process is expected to be completed in nine months. READ MORE

After the acquisition, Apollo Munich Health Insurance will be merged with the non-life insurance arm of HDFC Ergo

8:29 AM

Sebi's separate FPI registration plan draws flak from investors

The Securities and Exchange Board of India’s (Sebi’s) recommendations to make it mandatory for sub-funds with segregated portfolios to take separate FPI registrations have invited strong opposition from foreign portfolio investors (FPIs). They fear such a move could compel them to liquidate their holdings, incur huge costs, and potentially disrupt the Indian stock market. READ MORE

8:27 AM

NEWS ALERT | Bank of Japan keeps deposit rate at -0.1 per cent, 10-yr yield target at around 0%

8:25 AM

Mauritius to green light offshore funds, advisory services in 60 days

Mauritius has given indicative timelines for clearing applications of offshore funds and advisory services, providing relief to Indian offshore funds that had come under the country’s regulatory glare and were waiting longer to get approvals for new funds. Mauritius has stepped up scrutiny of offshore fund structures, as the country tries to shed its image as a quasi-tax haven and showcase its compliance with all major international tax norms. READ MORE

Illustration by Ajay Mohanty

8:20 AM

With new RBI norms, investors need to be cautious about small finance arms

With the Reserve Bank of India set to open up the small finance banking space for more players soon, investors will be flooded with more options, thanks to the mandatory listing norms for SFBs. Among the current entities, Equitas and Ujjivan are required to list their SFBs by September 2019 and February 2020, respectively. READ MORE

8:15 AM

India bond yields to decline further over global tensions, say dealers

With the bond yields in Europe in a negative territory, and the market expecting more than one rate cut by the Reserve Bank of India (RBI), the Indian bond market is at the midst of a great rally, with some more legroom to go. The 10-year government bond yield fell to 6.84 per cent, recovering a little from Tuesday’s 6.81 per cent. On Monday, the yields had closed at 6.93 per cent. READ MORE

8:11 AM

Near-term gains unlikely for cement stocks due to high valuations

A recovery in prices in the past couple of months has provided strong support to cement stocks. The share prices of select cement companies have gained 12-34 per cent in 2019 so far, outpacing an 8 per cent rise in the Sensex. However, concerns over realisations and high valuations could limit gains in the near term. READ MORE

8:08 AM

US Fed hints at rate cuts later this year: Top takeaways from June meeting

The US Federal Reserve kept the policy rate unchanged in the range of 2.25 - 2.50 per cent in its June monetary policy meet that concluded on Wednesday but hinted at possible rate cuts later this year for the first time in more than a decade if the economic outlook weakens.

Following the policy announcement, the US stocks ended in the green with the S&P 500 approaching a record high. The Dow Jones Industrial Average rose 0.15 per cent to end at 26,504.27 points, while the S&P 500 gained 0.30 per cent to 2,926.44. The Nasdaq Composite added 0.42 per cent to 7,987.32. READ HERE

8:04 AM

Trump admin mulling caps on H-1B visas to deter data rules: Report

The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade.

 

The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the United States each year, comes days ahead of US Secretary of State Mike Pompeo's visit to New Delhi. READ MORE

8:02 AM

From telecom to oil sector, economists flag 'business uncertainties'

Economists and financial sector experts expressed their concerns on uncertainty in the business environment and allegedly arbitrary decisions taken by tax, regulatory and other authorities that hamper businesses in India, in a meeting with NITI Aayog on Tuesday.

According to sources, the participants were of the view that particularly in case of telecom and oil, policy changes have not been synchronised well and often the projects are stuck because of issues raised by anybody in the chain of authority. READ MORE

7:58 AM

Corporate Affairs Min may amend LLP Act to tighten noose on shell firms

Conversion of companies into LLPs picked up pace in the past three years because of easy rules, giving rise to an apprehension that these may be shell companies. The number of firms that got converted to LLPs has doubled to 6,000 since demonetisation.

 

A senior ministry official said: “The rate at which companies are converting into LLPs is unusual. After the crackdown on shell companies, the number of converts to LLPs has doubled. They might be trying to beat the law.” CLICK HERE TO READ MORE

7:57 AM

Today's picks: From Adani Ports to Titan, hot stocks to watch on Thursday

Nifty
 

Current: 11,691 (fut: 11,720),
 

Target: NA

 

Stop-long positions at 11,645. Stop-short positions at 11,800. Big moves could go till 11,850, 11,600. News flow from the Fed Policy meet could be the big swing factor. A long June 27, 11,900c (24), long 11,500p (25) offset by short 11400p (15), short 12,000 (11) could cover any possible trend. READ MORE

7:54 AM

Stock calls by Tradebulls Securities: Buy Motherson Sumi, sell Tata Chem

50- Double Exponential Moving Average (DEMA; 11,658) acted as support for the third consecutive session on the downside with occurrence of another “Doji” at lower end of consolidation support. Occurrence of “Bearish Belt Hold” candle along with a negative crossover in the previous trading session warrants a cautious approach in the forthcoming sessions. READ MORE

7:51 AM

Market outlook and top two trading ideas by Prabhudas Lilladher

BUY VOLTAS 

 

CMP : Rs 609.60 

 

TARGET : Rs 646 

 

STOP LOSS : Rs 590

 

The stock has been in an upward trend forming series of higher bottom formation pattern in the daily chart to signify strength and currently has taken support at 592 levels and bouncing back for further upside movement. The RSI also has indicated a reversal to improve the bias and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 646 keeping a stop loss of Rs 590. READ MORE