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.

9:50 AM

Govt's move to push FDI via stock exchanges fails to yield results

The central government’s move to allow higher foreign direct investment (FDI) in Indian stock exchanges has failed to take off. In 2016, it notified rules allowing a foreign entity to hold up to 15 per cent in an exchange. Earlier, this was capped at 10 per cent.

 

However, none has come to avail the extra legroom. Industry players say this is because it still allows only portfolio investment and does not provide any extra privilege such as control. READ MORE

9:40 AM

Balanced funds shrink by 72% in five months to Rs 27 bn from Rs 100 bn

 

Balanced schemes which dabble both in stocks and debentures are losing favour with investors. Inflows into these hybrid schemes stood at Rs 27 billion in May, down 72 per cent from the peak of Rs 100 billion seen in December 2017. The May inflow tally isn’t one off. READ MORE

 

9:30 AM

Stocks in news

Cabinet approves raising of additional share capital of HDFC Bank up to a maximum of Rs 24,000 crore.

ICICI Bank to sell up to 2.87 crore shares or 2% equity in ICICI Prudential Life Insurance through stock exchange mechanism.

Lupin launches generic Tobramycin Inhalation Solution USP in the U.S.

Cipla received final U.S. FDA approval for generic Isuprel injection.

The Board of Directors of Oberoi Realty has approved an issue of shares under QIP programme. The issue was opened on 13.06.2018 and the floor price for the same has been Rs. 509.29 per share. The board will meet on 19.06.2018 for finalizing the issue price.

Kansai Nerolac starts commercial production at Gujarat unit.

Hindustan National Glass to sell 11.23% stake in HNG Float Glass joint venture for $19.3 million.

Infosys partners Rhode Island School to train 1,000 designers in 2 yrs.

HCL seeks govt approval for IT SEZ in Andhra Pradesh; to invest over $4 bn.

Tata Power: It has signed a power purchase agreement with GE for 5 MW solar projects.

Adani Transmission: The firm has received a letter of intent of one Intra State Transmission Project in Uttar Pradesh.

Container Corp and Bangalore Airport Terminal Services signed MOU to work together for providing Ground Handling and various other airport related services on PAN India basis.

(Source: Nirmal Bang report)

9:29 AM

Motilal Oswal on TCS

With multiple mega deals in the bag, TCS is set to continue on its path of gradual acceleration in growth witnessed over the past two quarters, and potential hitting double-digits in constant currency toward the latter half of the year. Currency movements will also play a key role in helping pull margins back to the aspired range of 26-28%. At 22.3x FY19E and 21.1x FY20E earnings, we remain Neutral on valuations

9:27 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

The Fed has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year. The Fed committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee's symmetric 2 percent objective over the medium term.

US indices closed lower and sentiment in most markets remain subdued. A quiet start is in store after the Indian indices closed flat following a swinging day. Stocks like TCS will be in focus ahead of the buyback announcement on Friday. HDFC Bank got a nod to raise additional capital of Rs 24,000 crore by selling stake to foreign investors

9:23 AM

MARKET COMMENT Rabobank International on fed rate hike

At closer inspection the shift in the dot plot does not seem significant, and the fourth hike for 2018 is still hanging in the balance. While the change in the forward guidance of the FOMC statement is significant it reflects the fact that we have moved closer to neutral. Meanwhile, we have our doubts about the Fed’s optimism on inflation as long as the Phillips curve refuses to materialize. Therefore, for now, we stick to our call for three hikes this year (March, June, September)

9:22 AM

Sectoral Trend

9:19 AM

BSE Sensex heatmap

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 35,644, down 95 points while the broader Nifty50 was ruling at 10,821, down 36 points.

9:04 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,774.28	+35.12	+0.10
S&P BSE SENSEX 50	11,374.51	+9.20	+0.08
S&P BSE SENSEX Next 50	33,213.85	+92.06	+0.28
S&P BSE 100	11,177.89	+12.32	+0.11
S&P BSE Bharat 22 Index	3,553.73	+11.21	+0.32

(Source: BSE)

9:00 AM

Trading ideas by Prabhudas Lilladher:

 

BUY BHARAT FORGE

CMP: Rs 656.55

TARGET: Rs 700

STOP LOSS: Rs 640

 

The stock has witnessed a decent erosion from the peak of 777 and has formed a bottom formation at around 628 levels and has currently indicated a bounce to signify strength and with the RSI on the rise and also the MACD has shown a trend reversal to maintain a positive bias and we anticipate it has got the potential to rise further in the coming days. With the volume participation increasing in the recent times, we recommend a buy in this stock for an upside target of 700 keeping a stop loss of 640. Click here for more

8:55 AM

Nifty outlook by Prabhudas Lilladher:

 

Nifty has surged for the past 5 days, now nearing our target of 10,900-10,920 where we would witness profit booking, also volatility index was on rise as we are nearing the Fed outcome. The support for the day is seen at 10790 while resistance is seen at 10,900. FMCG sector seems to be getting ready for yet a new high, we have a bullish view for the same & so also is the case with IT Index.

8:50 AM

Top trading ideas for today by Tradebulls Securities

 

Stock: INDIGO

Reco: Buy

CMP: Rs 1,219

 

Double bottom formation on the daily scale followed by an impulse. The Occurrence of multiple dojis near the 61.8% retracement support of its prior Impulse (1,085-1,235) augurs well for a higher established base for the next impending upmove to be witnessed soon. Trading longs could be considered with a stop below 1,196 & an initial target upto 1,315. Click here for more technical calls

8:45 AM

Nifty Outlook by Tradebulls Securties:

 

Post breaking out from the oscillating range Nifty has been gradually crawling higher maintains its lower shadows above its previous days low. As the index lacks the desired momentum which should have been witnessed post the breakout so far the only sigh of relief is the rising sequence of higher bottoms along with the rising RSI which is still away from its overbought state. It is likely that a sustained close above 10,855 could regenerate the bullish momentum & push the index towards 10,930 /11,060 zone.

On the flipside a breach below 10,770 could push it back into the mean reverting range of 10,770-10,630 & hence serves a trail stop for any longs so far. Traders are advised to remain cautious & aggressive positions would be warranted once a firm close is established above 10,930 or below 10,770 from here on.

8:41 AM

Today's picks

 

Bharti Airtel

Current price: Rs 376

Target price: Rs 370

 

Keep a stop at 379 and go short. Add to the position between 371-372. Book profits at 370.

 

Bajaj Finance

Current price: Rs 2,231

Target price: Rs 2,195

 

Keep a stop at Rs 2,250 and go short. Add to the position between 2,200-2,210. Book profits at 2,195. Click here for more