Tag: FOMC

Markets trade lower; ICICI Bank, HDFC shares dip

13/10/2016 10:18

The key domestic benchmark indices were trading in a negative terrain in the morning trading session as negative signs from most markets in Asia amidst speculation of a near-term US Federal Reserve interest rate hike restricted risk taking appetite.

FOMC minutes released on Wednesday exhibited that numerous policymakers called for rate tightening comparatively soon with enhanced economic data and fears over an quickening in inflation also boosting the case to raise borrowing costs.

The focus today will be on the September consumer inflation data to be released in after-market hours, and which may offer further cues over policy easing by the RBI in the coming months. Also, all eyes will also be fixated on TCS as the country’s biggest software exporter reports its September quarter earnings.

At 10:15 AM, the Bombay Stock Exchange bellwether Sensex was at 27821.5 down by 260.84 points or by 0.93 per cent, while the NSE Nifty was at 8639.05 points, trading lower by 69.75 points or by 0.8 per cent.

The BSE Sensex touched an intraday high of 28042.62 and an intraday low of 27808.61 while the NSE Nifty touched an intraday high of 8681.55 and an intraday low of 8626.6

The top gainers of the BSE Sensex pack were Infosys Ltd. (Rs. 1057.45,+2.71 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 272.90,+2.02 per cent), Cipla Ltd. (Rs. 587.95,+1.27 per cent), GAIL (India) Ltd. (Rs. 420.35,+0.42 per cent), Asian Paints Ltd. (Rs. 1212.75,+0.07 per cent), among others.

Meanwhile, ICICI Bank Ltd. (Rs. 244.30,-2.32 per cent), Housing Development Finance Corporation Ltd. (Rs. 1361.10,-2.21 per cent), Adani Ports & Special Economic Zone Ltd. (Rs. 258.55,-2.06 per cent), Tata Motors Ltd. (Rs. 551.05,-1.97 per cent), Sun Pharmaceutical Industries Ltd. (Rs. 741.55,-1.70 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 2243 shares traded, 770 shares advanced, 1387 shares declined while 86 were unchanged.

On the global front, Asian stocks were trading lower today as a stronger greenback hit commodity producers while the Fed indicated that a rate hike was probably imminent. US stocks closed higher in the previous trading session as the Fed indicated that it may undertake interest rate tightening soon but maintain a gradual approach to further rate hikes.

13/10/2016 10:18

The key domestic benchmark indices were trading in a negative terrain in the morning trading session as negative signs from most markets in Asia amidst speculation of a near-term US Federal Reserve interest rate hike restricted risk taking appetite.

FOMC minutes released on Wednesday exhibited that numerous policymakers called for rate tightening comparatively soon with enhanced economic data and fears over an quickening in inflation also boosting the case to raise borrowing costs.

The focus today will be on the September consumer inflation data to be released in after-market hours, and which may offer further cues over policy easing by the RBI in the coming months. Also, all eyes will also be fixated on TCS as the country’s biggest software exporter reports its September quarter earnings.

At 10:15 AM, the Bombay Stock Exchange bellwether Sensex was at 27821.5 down by 260.84 points or by 0.93 per cent, while the NSE Nifty was at 8639.05 points, trading lower by 69.75 points or by 0.8 per cent.

The BSE Sensex touched an intraday high of 28042.62 and an intraday low of 27808.61 while the NSE Nifty touched an intraday high of 8681.55 and an intraday low of 8626.6

The top gainers of the BSE Sensex pack were Infosys Ltd. (Rs. 1057.45,+2.71 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 272.90,+2.02 per cent), Cipla Ltd. (Rs. 587.95,+1.27 per cent), GAIL (India) Ltd. (Rs. 420.35,+0.42 per cent), Asian Paints Ltd. (Rs. 1212.75,+0.07 per cent), among others.

Meanwhile, ICICI Bank Ltd. (Rs. 244.30,-2.32 per cent), Housing Development Finance Corporation Ltd. (Rs. 1361.10,-2.21 per cent), Adani Ports & Special Economic Zone Ltd. (Rs. 258.55,-2.06 per cent), Tata Motors Ltd. (Rs. 551.05,-1.97 per cent), Sun Pharmaceutical Industries Ltd. (Rs. 741.55,-1.70 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 2243 shares traded, 770 shares advanced, 1387 shares declined while 86 were unchanged.

On the global front, Asian stocks were trading lower today as a stronger greenback hit commodity producers while the Fed indicated that a rate hike was probably imminent. US stocks closed higher in the previous trading session as the Fed indicated that it may undertake interest rate tightening soon but maintain a gradual approach to further rate hikes.

6 Risk Events investors need to watch out for this month (July 2015)

6 Risk Events investors need to watch out for this month (July 2015)

Investors, beware of these six events.

The Greek Economy is coming down crashing like nine pins and a recent report by BoFA-ML suggests there are at least 6 event risks investors need to be aware of and prepare in case need be.

India economists, Indranil Sen Gupta and Abhishek Gupta at Bank of America suggests that there would be no immediate resolution of the Greek Crisis with rising Grexit risks.

Here are the six events that BofA-ML lists:

May IIP: BofA-ML estimates that May industrial growth will slow to 2.8 per cent on July 10 from 4.1 per cent in April. The report also suggests that the recovery shoud be back-ended as lending rates take about six months to support growth. They also comprehend GDP (gross domestic product) growth slowly bottoming out to 6 per cent (in the old series) in FY16 from 5.5 per cent in FY15.

June Inflation: BofA-ML pegs consumer price inflation (CPI) at 5.4 per cent, higher than May’s 5 per cent, which will be driven by higher prices of pulses; increase in service tax could raise CPI inflation by around 20 bps (basis points); and fall in petrol deflation to -2.6 per cent in June from -8.9 per cent in May that could impact CPI inflation by 10-15 bps. In this backdrop, they expect the Reserve Bank of India (RBI) cut rates by 50 bps by early 2016 with inflation well on track to its ‘under’-6 per cent January 2016 target.

Monsoons: Let’s face it, monsoons are unpredictable. So even if June runs smoothly, the standard monsoon accounts for only 15.2 % of the seasonal rainfall. So be on your toes, as a clearer picture can only be expected by mid-July according to the report.

Parliament Session: According to BofA, the recent controversies in the political scenario do not send positive signs for a seamless passage of GST or amendments to Land Acquisition Act during the upcoming monsoon session of Parliament beginning 26 July. Currently, the market is over rating the contribution of either legislation to grow.

BofA comments, “We believe that lending rate cuts, rather than reforms, hold the key to an immediate cyclical recovery by say, end-2015. Reforms will support growth only over, say, 5 years and so, it does not really matter where they are legislated in this parliamentary session or next,” in the report.

Corporate results: Though overall turnaround is expected around September onwards, analysts at BofA-ML expect Sensex profit growth to recover to about 4 per cent in the June quarter from -0.1 per cent in March on standalone basis.

FOMC meet: “Despite improving data, the bond market is pricing in only about a one-in-five chance of a rate hike in September,” BofA-ML says. The reports also suggests, the US Federal Reserve (US Fed) could give clues to the possibility of a hike in interest rates in the upcoming policy meet on 28/29 July.