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.

8:33 AM

WPI data to be released today

 

Traders and investors are closely awaiting a series of domestic and global events this week. The wholesale price index (WPI) inflation data will be announced on June 14, 2018. According to a Reuters Poll, the wholesale prices index is likely to hit a six-month high of 3.82 per cent in May.

8:25 AM

India's CAD triples to 1.9% in Q4 year-on-year, pegged at 1.6% in FY18

 

The country’s current account deficit (CAD) rose to $13 billion (Rs 878 billion and 1.9 per cent of gross domestic product, or GDP) in the fourth and final quarter (Q4 of 2017-18), compared to $2.6 billion (Rs 176 billion and 0.4 per cent of GDP) in the same period of 2016 -17.

 

It, however, moderated marginally from $13.7 billion (2.1 per cent of GDP) in the third quarter (October to December 2017), stated the Reserve Bank of India. READ MORE

8:20 AM

Fitch ups India's growth forecast to 7.4% for FY19

 

Fitch Ratings on Wednesday raised India's economic growth forecast to 7.4 per cent for 2018-19 but cited higher finance costs and rising oil prices as risks.

 

It also said that the rupee has been among the worst performers vis-a-vis Asian currencies this year. The global credit rating agency had earlier estimated the GDP growth at 7.3 per cent for the current financial year. For 2019-20, it projected the growth at 7.5 per cent. READ MORE

8:15 AM

Markets on Wednesday

S&P BSE Sensex	35,739.16		0.13%
Nifty 50	10,856.70		0.13%
S&P BSE 200	4,700.23		0.05%
Nifty 500	9,386.40		-0.00%
S&P BSE Mid-Cap	16,077.51		-0.46%
S&P BSE Small-Cap	17,028.87		-0.21%

8:10 AM

Global Market Check

INDEX	DATE	LATEST	PREV CLOSE	CHG(PTS)	CHG(%)
PSE COMPOSITE	13-06-2018	7602.98	7771.30	-168.32	-2.17
JAKARTA COMPOSITE	08-06-2018	5993.63	6106.70	-113.07	-1.85
MERVAL	14-06-2018	30228.42	30749.09	-520.67	-1.69
HANG SENG	13-06-2018	30725.15	31103.06	-377.91	-1.22
STRAITS TIMES	13-06-2018	3392.51	3430.69	-38.18	-1.11

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8:05 AM

SGX Nifty

 

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 34.5 points or 0.32 per cent. Nifty futures were trading around 10,810-level on the Singaporean Exchange.

8:00 AM

Understanding Fed policy: Some mysteries cleared, plot thickens on others

 

Jerome Powell gave Federal Reserve-watchers some meaningful answers on Wednesday. He also left them scratching their heads over ever-bigger questions.

 

The Fed lowered its outlook for unemployment this year to 3.6 per cent -- down from 3.8 per cent in the March Summary of Economic Projections -- and the median estimate now sees 3.5 per cent joblessness prevailing in 2019 and 2020. That would take the U.S. to levels last seen in the late 1960’s. Despite those near-term projections, policy makers still see 4.5 per cent unemployment as the long-run sustainable level. READ MORE

7:55 AM

Fed-driven dollar rally fades, focus shifts to ECB meeting

 

The dollar slipped back from three-week highs against the yen on Thursday, quickly erasing gains made after the Federal Reserve took a slightly more hawkish policy tone in signalling two more rate hikes by year-end thanks to a solid outlook for the world’s biggest economy.

 

The greenback’s bounce faded as traders booked profits before the European Central Bank’s meeting later Thursday, where policy makers are seen discussing the timing of winding down the ECB’s 2.55-trillion-euro (£2.24 trillion) bond-purchase programme.

7:50 AM

Oil prices fall

 

Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in US fuel inventories provided the market with some support.

 

Brent crude futures, the international benchmark for oil prices, were at $76.46 per barrel, down 28 cents, or 0.4 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.58 a barrel, down 6 cents from their last settlement.

7:45 AM

Fed lifts rates amid stronger inflation

 

The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the US central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession.

 

In raising its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy “for some time” and signaled it would tolerate inflation above its 2 percent target at least through 2020. READ MORE

7:40 AM

Asian shares down on Fed hike

 

Asian shares edged down on Thursday after the Federal Reserve raised interest rates and took a more hawkish tone in forecasting a slightly faster pace of tightening for the rest of the year, while concerns about US-China trade frictions kept investors on edge.

 

MSCI's broadest index of Asia-Pacific shares outside Japan  lost 0.25 per cent in early trade. South Korea's KOSPI was off 0.9 per cent, while Australia's market slipped 0.2 per cent.

 

Japan's Nikkei shed 0.7 per cent.

7:33 AM

Wall Street falls as Fed signals two more hikes this year

 

US stocks ended a choppy session lower on Wednesday after the US Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes this year.

 

The Dow Jones Industrial Average fell 119.53 points, or 0.47 per cent, to 25,201.2, the S&P 500 lost 11.22 points, or 0.40 per cent, to 2,775.63 and the Nasdaq Composite dropped 8.10 points, or 0.11 per cent, to 7,695.70.

7:30 AM

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