MARKET WRAP: Sensex ends 139 pts lower, Nifty at 10,808 as Fed hikes rates

Among sectoral indices, the Nifty IT index ended 1.5% lower led by a fall in shares of MindTree, Tech Mahindra and Tata Consultancy Services.

1:00 PM

BS SPECIAL Fed hike is good for the US markets; FII outflow from India can accelerate

On the positive side, the Federal Reserve seems to think that the US economy is headed for better times. It feels that the growth is very robust and expects unemployment to fall even further. At the same time, inflation is also on the upward trajectory. Therefore, Fed believes it is important to increase interest rates, which it has done. And, it is now talking about two more interest rate hikes, which is probably a bit more than what the market expected. READ MORE

 

12:45 PM

Multinational drug makers shine as domestic pharma market grows 10%

The growth of over 10 per cent in the domestic pharma market for May, according to data from AIOCD (pharma market research company), has brought cheer to all drug producers. Most of the large-cap Indian pharma companies, which are facing heat in the US market due to pricing pressures, are likely to get some respite. READ MORE

 

12:33 PM

BS SPECIAL Here are the clues that RBI, others can draw from the US Fed action

The important message to be taken from the statement was the forward-looking one on future rate cuts. With the indication now of four rate hikes for the year, and with two having been announced so far, we expect the rate to now end at 2.25-2.5 per cent by the year-end READ MORE

12:17 PM

Jagran Prakashan hits 52-week low as stock turns ex-date for buyback today

 

Shares of Jagran Prakashan (JPL) hit a 52-week low of Rs 145 per share, down 9% on the BSE in intra-day trade, after the stock of publishing company turned ex-date for buyback of equity shares of the company.

 

The board of directors of the company at its meeting held on April 27, 2018, had approved the buyback of up to 15 million equity shares representing 4.82% of the total equity capital of the Company, at a price of Rs 195 per share, for an aggregate amount of Rs 2,925 million. READ MORE

12:03 PM

WPI data

India May WPI inflation 4.43% vs 3.18% in April

12:00 PM

Market at Noon

S&P BSE Sensex	35,527.25		-0.59%
Nifty 50	10,789.15		-0.62%
S&P BSE 200	4,675.82		-0.52%
Nifty 500	9,338.00		-0.52%
S&P BSE Mid-Cap	16,005.52		-0.45%
S&P BSE Small-Cap	17,003.42		-0.15%

11:45 AM

ICICI Prudential Life extends fall on promoter stake sale plan

 

ICICI Prudential Life Insurance Company dipped 3% to Rs 397 in early morning trade, extending its previous day’s 3% fall on the BSE after the promoter ICICI Bank proposed to sale up to 2% stake of the company through offer for sale (OFS) route, which begins today.

 

ICICI Prudential Life, which was trading at its lowest level since April 24, 2018, has fallen 13% from its recent high of Rs 455 on May 11, 2018. READ MORE

11:31 AM

Legal, regulatory changes needed for foreign listing of Indian firm

 

The Securities and Exchange Board of India’s (Sebi) willingness to consider direct listing of Indian companies abroad will require several regulatory changes. On the tax front, the Income Tax Act and all Double Tax Avoidance Agreements would need amending.

 

Non-tax laws such as the Sebi Act, Reserve Bank of India Act, and the Foreign Exchange Management Act (Fema) will also need changes. Experts say tax laws would be the most sensitive matter in this context, to avoid double taxation. READ MORE

11:15 AM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
INFOSYS	1244.95	1274.80	-29.85	-2.34	1243777
TECH MAHINDRA	698.85	713.80	-14.95	-2.09	1835329
ST BK OF INDIA	282.20	287.70	-5.50	-1.91	7780090
TCS	1795.25	1824.10	-28.85	-1.58	1205676
GAIL (INDIA)	339.70	344.85	-5.15	-1.49	548904

11:00 AM

Carlsberg plans IPO for Indian operations to tap growing beer market

Carlsberg A/S is planning a local initial public offering of its Indian business, people with knowledge of the matter said, as it seeks to tap the growing middle class’s increasing thirst for foreign beer.

 

The Danish brewer is interviewing potential arrangers for the share sale over the next few weeks, according to the people, who asked not to be identified because the information is private. READ MORE

10:45 AM

MARKET COMMENT Morgan Stanley on US Fed rate hike

As expected, the FOMC voted to raise its target range for the federal funds rate by 25bp, to 1.75%–2.00%. The statement and projections skewed a bit hawkish. Chair Powell and the FOMC are pleased with the robust labor market and inflation at target. For the time being, they believe continuing down a path of gradual rate hikes will be the best way to maintain these favorable conditions.

 

The FOMC remains roughly split on whether to hike rates 3 or 4 times this year. Only one participant revised their projection, shifting the median from 3 to 4. We continue to expect only one additional hike this year before the Fed pauses at its December meeting, as the target range aligns with our estimate of current financial conditions are tighter, and policy is no longer that accommodative.

10:45 AM

Rupee, bonds hold steady after US Fed's expected move to hike rate

Bond yields in India have not shown any reaction to the US Federal Reserve’s move to hike the key policy rate by 25 basis points last night, as the hike was already expected and priced in.

 

The US Fed also indicated that there might be two more rate hikes by the end of calendar year, in line with market expectations. READ MORE

10:29 AM

Buyback, deal win to add to TCS' earnings, stock nearing all-time high

Two important announcements after market hours on Tuesday, regarding share buyback and expansion of a mega deal, saw the Tata Consultancy Services (TCS) stock trading near its all-time high, before closing at Rs 1,824 (up 2.4 per cent) on Wednesday. The optimism is not without reason. READ MORE

 

10:15 AM

Infosys trades ex-dividend; stock up 24% in CY18

 

Shares of Infosys opened 1% higher at Rs 1,259 per share on the BSE, also their new high adjusted to dividend, in otherwise subdued market. The stock of information technology (IT) major has turned ex-dividend for Rs 30.50 per share today. READ MORE

 

10:01 AM

Market Check

 

S&P BSE Sensex	35,598.70		-0.39%
Nifty 50	10,815.45		-0.38%
S&P BSE 200	4,685.91		-0.30%
Nifty 500	9,358.85		-0.29%
S&P BSE Mid-Cap	16,057.18		-0.13%
S&P BSE Small-Cap	17,028.75		-0.00%