MARKET WRAP: Indices end flat, Nifty at 10,857 ahead of US Fed outcome

Among sectoral indices, the Nifty IT index ended over 1% higher on Wednesday led by a rise in the shares of TCS and Infosys.

3:41 PM

Nifty IT index ends 1.26% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
TCS	1824.10	1781.00	43.10	2.42
INFOSYS	1274.80	1258.50	16.30	1.30
INFIBEAM INCORP.	153.90	152.00	1.90	1.25
HCL TECHNOLOGIES	923.70	914.80	8.90	0.97
WIPRO	268.80	266.45	2.35	0.88

3:39 PM

Nifty sectoral gainers and losers of the day

3:37 PM

BSE Sensex: Dr. Reddy's, TCS among top gainers of the day, Tata Steel top loser

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,739, up 47 points while the broader Nifty50 index settled at 10,857, up 14 points.

3:14 PM

Gold steady as markets cautious ahead of US Fed statement

Gold prices held steady on Wednesday after falling to a one-week low in the previous session, as investors waited for clues on the pace of future interest rate hikes by the US Federal Reserve when its policy meeting concludes later in the day.

 

Spot gold was little changed at $1,295.02 per ounce at 0634 GMT after it touched a one-week low of $1,292.60 in the previous session. US gold futures for August delivery were 0.1 percent lower at $1,298.50 per ounce. READ MORE

2:59 PM

Pharma stocks on a booster dose

 

Shares of pharmaceutical companies gained ground for the sixth consecutive day with the Nifty Pharma index gaining 12 per cent during this period, as compared to a 2.6 per cent jump in the Nifty 50 index.

 

Analysts attribute the run-up in pharma stocks to positive corporate announcements on the US drug regulatory front, especially Sun Pharma, which infused a fresh life into these classic defensive plays. READ MORE

2:45 PM

Ruchi Soya locked at 5% upper circuit

Shares of Ruchi Soya Industries locked at 5% upper circuit as Adani group emerged as highest bidder for the company. Adani's group company offered about Rs 6,000 crore to emerge as the highest bidder for acquisition of bankruptcy-hit edible oil firm Ruchi Soya, sources with direct knowledge of the matter said.

 

Baba Ramdev-promoted Patanjali Ayurved, the only other qualified player in the race, has bid for around Rs 5,700 crore, they added.

2:31 PM

Top gainers from the Nifty50 index

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
DR REDDY'S LABS	2265.00	2190.65	74.35	3.39	2117052
CIPLA	582.65	567.10	15.55	2.74	4055906
TCS	1826.80	1781.00	45.80	2.57	4295569
HINDALCO INDS.	246.35	240.65	5.70	2.37	4361193
LUPIN	873.95	855.00	18.95	2.22	5572465

2:15 PM

Global oil demand to grow steadily in 2019 but trade risks loom: IEA

Oil demand will grow steadily in 2019 thanks to a solid global economy and stable prices, although trade tensions remain the largest risk, the International Energy Agency said on Wednesday. READ MORE
 

2:00 PM

Market Check

 

S&P BSE Sensex	35,825.09		0.37%
Nifty 50	10,877.40		0.32%
S&P BSE 200	4,714.00		0.34%
Nifty 500	9,412.55		0.28%
S&P BSE Mid-Cap	16,163.30		0.08%
S&P BSE Small-Cap	17,102.90		0.22%

1:45 PM

Infosys hits record high on the BSE

Shares of Infosys hit a record high of Rs 1,278.55 per share, up 1.6% on the BSE in intra-day trade on Wednesday, surpassing their previous high of Rs 1,278 per share recorded on June 3, 2016.
 

On the National Stock Exchange (NSE), the stock hit a high of Rs 1,278.85, up 1.6%, and is slightly away from its all-time high of Rs 1,279.30 touched on June 3, 2016. READ MORE

1:30 PM

Dr Reddy's stock: Product pipeline should boost revenue growth in FY19

 

The Dr Reddy’s stock gained on Tuesday over 5 per cent in trade, on expectation that the company would be soon launching a generic version of opioid treatment drug Suboxone. Coupled with its other launches in FY19 in the US, this should boost its profit.

 

Analysts at Nomura believe there is a strong probability that the company will get approval in the near term for Suboxone, and expect initially lower competitive intensity. They estimate an annualised earnings per share impact of Rs 62.5 without additional generic competition. READ MORE

1:15 PM

Page Industries extends license agreement with Jockey; stock surges 6%

 

Shares of Page Industries hit a record high of Rs 26,180 per share, rising 6% on the BSE in intra-day trade after the company announced extension of license agreement with Jockey International till December 31, 2040.

 

“Our license agreement with Jockey International Inc has been extended till December 31, 2040,” Page Industries said in a regulatory filing. READ MORE

1:00 PM

Top BSE500 gainers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
REDINGTON INDIA	127.60	9.90	8.41	130981
H U D C O	63.00	4.00	6.78	1000200
DELTA CORP	242.55	15.20	6.69	618986
KESORAM INDS.	94.50	5.05	5.65	63114
SITI NETWORKS	14.69	0.75	5.38	1741287

12:45 PM

Government bond yields poised to rise as market reacts to RBI's rule change

The Reserve Bank of India (RBI) announced an important regulatory change in Wednesday’s monetary policy review, which reduces banks’ demand for government bonds by around 2% of aggregate deposits. We estimate that is equal to roughly Rs 2.3 trillion. While the market was expecting a move along these lines, government bond yields are likely to rise as the market reacts to the change over time, in our view. READ MORE
 

12:31 PM

Why Urjit Patel could go for another repo rate hike in August review

Inflation picked up in India for a second straight month, giving ammunition to the central bank to further tighten monetary policy and squeezing returns for bond investors. READ MORE

12:15 PM

Sebi constitutes a committee to review institutional trading platform

The Sebi has constituted a committee to review the institutional trading platform (ITP) offered by stock exchanges. Introduced in 2015, the ITP allows start-ups to list without having to raise capital. The platform is essentially aimed at facilitating new-age companies operating in sectors like e-commerce and data analytics. READ MORE

 

12:01 PM

Market Check

 

S&P BSE Sensex	35,815.78		0.35%
Nifty 50	10,875.75		0.30%
S&P BSE 200	4,713.94		0.34%
Nifty 500	9,415.30		0.31%
S&P BSE Mid-Cap	16,198.26		0.29%
S&P BSE Small-Cap	17,135.73		0.41%

11:45 AM

Page Industries extends license agreement with Jockey; stock surges 6%

Shares of Page Industries hit a record high of Rs 26,180 per share, rising 6% on the BSE in intra-day trade after the company announced extension of license agreement with Jockey International till December 31, 2040. READ MORE

 

11:30 AM

RBI's tighter norms for working capital would increase NPAs: India Inc

 

The finance heads of Indian companies said the Reserve Bank India’s (RBI’s) proposal to limit the working capital facilities is “micro-management” and impacts their businesses negatively, with many companies even defaulting on loans.

 

On Monday, the RBI proposed that at least 40 per cent of the sanctioned working capital limit of a company should have a term loan component. READ MORE

11:15 AM

Axis Bank: Sub-investment grade assets may keep bad loans elevated

 

Even after higher recognition of non-performing assets (NPAs or bad loans) in the March 2018 quarter, it may be early to say that the asset quality pain for Axis Bank is over. The stock is down 4.8 per cent in 2018, when Nifty Bank and Sensex are up 4-5 per cent.

 

Analysts say, the bank’s exposure to sub-investment grade assets is still high and could be a source of bad loans in the near-term. READ MORE

10:59 AM

India Inc independent directors feel the heat as frauds take centre stage

Auditors are not the only ones calling it quits. With increasing instances of high-profile corporate frauds, accounting discrepancies and application of global anti-corruption laws, independent directors are finding the going tough.

 

More than 1,000 independent directors (IDs) have quit since January last year, data from Prime Database show. That number is likely to go up substantially in 2019 when a number of IDs’ terms are reviewed for renewal. READ MORE

10:45 AM

Sun Pharma extends rally on EIR from USFDA for Halol facility

Sun Pharmaceutical Industries was up 4% to Rs 561 on BSE in early morning trade, extending its past five days 14% rally, after the company announced the resolution of regulatory compliance issues at Halol plant. READ MORE

 

10:30 AM

Emerging markets can't blame Fed for their problems. Here's why

Emerging markets have taken a hit from the prospect of even higher US interest rates and a stronger dollar, which increase the cost of servicing external debt. The pressure can be seen in the depreciation of their currencies, with the MSCI Emerging Markets Currency Index dropping 3.54 per cent from its high this year in early April. READ MORE

10:13 AM

TCS gains 3% as board mulls share buyback proposal

Shares of Tata Consultancy Services (TCS) were up 3% at Rs 1,830 per share on the BSE in early morning trade after the information technology (IT) major said that its Board will consider a proposal for buyback of equity shares of the company, at its meeting on June 15, 2018. READ MORE

9:59 AM

Market Check

S&P BSE Sensex	35,767.58		0.21%
Nifty 50	10,853.55		0.10%
S&P BSE 200	4,708.32		0.22%
Nifty 500	9,403.40		0.18%
S&P BSE Mid-Cap	16,215.76		0.40%
S&P BSE Small-Cap	17,146.02		0.47%

9:53 AM

Jefferies on Telecom sector

Indian telecom revenues fell 7% QoQ in 4Q18 led by an 11% drop in ARPU. With the exit of RCOM and Aircel most large operators gained market share. Idea was the only large operator to lose market share (down 30bps QoQ), losing market share in 14 of the 22 circles. Jio's market share has increased 400bps to 19%, though remains below its target of 50%. With Jio targeting Postpaid subscribers, we expect revenues to fall another c10% in the next 12 months.

9:46 AM

Brokerages ask Sebi for relaxing rules on basket investment plans

Brokerages have asked the Securities and Exchange Board of India (Sebi) for relaxing the rules on the so-called basket investment plans they offer. These products currently do not have a regulatory framework and brokerages market these to customers as long-term investment products, on the lines of the systematic investment plans (SIPs) offered by mutual funds (MFs). READ MORE

 

9:28 AM

US FED POLICY PREVIEW US Fed likely to hike rates by 25 bps this week, say analysts

US Federal Reserve (US Fed) is likely to stay on course and hike interest rates by 25 basis points (bps) in its upcoming meeting on June 12 & 13. The possible hike in interest rates comes in the backdrop of elevated crude oil prices, global trade war fears and a firm dollar.

 

Most analysts expect the US central bank to hike rates at least twice this year – in June and in September, and follow it up with a couple of more hikes in calendar year 2019 (CY19). The Federal Reserve raised its policy interest rate last in march 2018, and noted economic growth was strengthening READ MORE

File photo of US Federal Reserve. Photo: Shutterstock

9:25 AM

COMMENT ON IIP, CPI Aditi Nayar, Principal Economist at ICRA

The uptick in the headline and the core CPI inflation in May 2018 is in line with our forecasts, reflecting an unfavourable base effect for food prices and higher inflation for transport and communication and fuel and light, mirroring the hardening of crude oil prices. With a plethora of data expected prior to the next MPC review, it may be premature to pencil in an immediate rate hike at this stage for the August 2018 policy review. However, a rate hike in Q3 FY2019 can't be ruled out, if the various inflation risks materialise