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.

3:45 PM

Nifty IT Index ended 1.49% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
MINDTREE	994.05	1028.75	-34.70	-3.37
INFOSYS	1240.00	1274.80	-34.80	-2.73
TECH MAHINDRA	698.40	713.80	-15.40	-2.16
TCS	1785.00	1824.10	-39.10	-2.14
INFIBEAM INCORP.	151.90	153.90	-2.00	-1.30

3:43 PM

Nifty sectoral losers of the day

3:41 PM

BSE Sensex: TCS, ICICI Bank, SBI among top losers of the day, Sun Pharma top gainer

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 35,600, down 139 points while the broader Nifty50 index settled at 10,808, down 49 points.

3:15 PM

Future Supply Chain, Hindustan Aeronautics hit lowest level since listing

Shares of Future Supply Chain Solutions (FSC) and Hindustan Aeronautics (HAL) have hit their respective lowest values since their listing on the bourses. FSC, a Future Group Company, has dipped 7% to Rs 620 on the BSE. The stock made its debut on December 18, 2017, trading 7% lower against its initial public offer price of Rs 664 per share. READ MORE

 

2:59 PM

Euro zone bond markets brace for ECB shift, stimulus scheme nears end

 

European government bond yields in the euro area edged up on Thursday as the European Central Bank prepared to debate whether to end its unprecedented stimulus scheme this year.

 

On Wednesday the US Federal Reserve raised interest rates as expected, and signalled two more hikes this year, citing higher inflation. READ MORE

2:50 PM

Gold futures up by 0.31% to Rs 31,239 on global cues

Gold prices went up by 0.31 per cent to Rs 31,239 per 10 grams in futures trade today as speculators built up fresh positions, taking positive cues from overseas markets.

At the Multi Commodity Exchange, gold for delivery in August month rose by Rs 96, or 0.31 per cent to Rs 31,239 per 10 grams in business turnover of 511 lots. READ MORE

2:40 PM

Reliance Industries hits new high, gains 10% in 3 weeks

 

Reliance Industries (RIL) hit a new high of Rs 1,011.70 up 1% on the BSE in noon deal, surpassing its previous high of Rs 1010.70 recorded on April 27, 2018 in intra-day trade.

 

In past three weeks, RIL has outperformed the market by surging 10% as compared to 4% rise in the S&P BSE Sensex. READ MORE

Reliance Industries

2:29 PM

After 2 yrs of muted sales, United Spirits eyes double-digit growth in FY19

 

The United Spirits stock has shed 15 per cent from its highs earlier this year, mainly owing to regulatory uncertainty weighing on the sentiment of the liquor sector. Demonetisation, and the ban on sale of liquor near state and national highways, besides issues related to the implementation of the goods and services tax, were among the headwinds.

 

The company reported a sales growth of just 3.8 per cent in FY17 and a fall of 4.5 per cent in FY18. READ MORE

2:13 PM

Alembic Pharma up 8% as USFDA approves Doxycycline Hyclate capsules

 

Alembic Pharmaceuticals has moved higher by 8% to Rs 530, bouncing back 11% from early morning low on the BSE after the company announced that it has received US drug regulator’s approval Doxycycline Hyclate capsules USP, 50 mg and 100 mg. The stock hit an intra-day low of Rs 478 in early morning trade.

 

“The company has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxycycline Hyclate Capsules USP, 50 mg and 100 mg,” Alembic Pharma said in a press release. READ MORE

2:00 PM

Market Check

S&P BSE Sensex	35,615.40		-0.35%
Nifty 50	10,801.35		-0.51%
S&P BSE 200	4,684.64		-0.33%
Nifty 500	9,346.90		-0.42%
S&P BSE Mid-Cap	16,027.31		-0.31%
S&P BSE Small-Cap	17,026.08		-0.02%

1:47 PM

COMMENT Aditi Nayar, Principal Economist at ICRA on WPI

The sharp jump in the WPI inflation to 4.4% in May 2018 surpassed our expectation (4.0%), on account of a spike in inflation for non food manufactured products (core-WPI inflation), reflecting the pass through of higher input costs to wholesale prices in several sectors. Additionally, an expected uptick in the inflation for crude oil and various mineral oils contributed to the hardening of wholesale inflation.

The WPI inflation is expected to harden by up to 80 bps in the ongoing month before easing somewhat in Q2 FY2019. Key factors that would influence the inflation trajectory include the level at which global crude oil prices stabilise and the extent to which they are transmitted to domestic fuel prices, the trend in the monsoon dispersion and the extent of change in MSPs

1:46 PM

Top losers in BSE500:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
JAGRAN PRAKASHAN	150.00	159.35	-9.35	-5.87
EROS INTL.MEDIA	128.35	133.60	-5.25	-3.93
MINDTREE	994.15	1030.00	-35.85	-3.48
CORPORATION BANK	30.75	31.85	-1.10	-3.45
OBEROI REALTY	509.90	527.85	-17.95	-3.40

1:30 PM

From Amazon to Westbridge, PE firms bet on insurance due to stable rules

The last few months have seen a spurt in private equity deals in the insurance space, with investors like Westbridge Capital and Warburg Pincus buying stakes in Star Health & Allied Insurance and India First Life, respectively (see box). There have been other deals too.

 

Investors, however, latched on to a change in Fed policymakers’ rates projections, which pointed to two additional hikes by the end of this year compared to one previously, based on board members’ median forecast. READ MORE

 

1:14 PM

May WPI Inflation spikes to 4.43% vs 3.18% in April: Govt data

WPI inflation rises to 14-month high of 4.43 pc in May on costlier fuel, veggies. Inflation based on wholesale prices shot up to a 14-month high of 4.43 per cent in May on increasing prices of petrol and diesel as well as vegetables. READ MORE

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%