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What changed for the market while you were sleeping? 12 things you should know

Sandip Das
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Market Update: Nifty midcap underperforms dragged by CG Power; SBI falls 2%, Hindalco top loser

85 stocks hit a new 52-week low. These include Can Fin Homes, CG Power, HCC, Bharti Infratel, INOX Wind, MRPL, NHPC, Tata Power and Vedanta among others.

Moneycontrol News

The Nifty which started on a positive note failed to hold on to momentum and witnessed profit booking near 10,900 levels and made a bearish candle on an intraday basis.

Traders preferred to book profits ahead of the crucial US Fed outcome but the positive takeaway is that the index managed to close above 10,850 levels which was the intraday high recorded earlier this week on Monday.

The Nifty index opened gap-up but failed to hold above 10,888 and consolidated in a narrow range with a support placed at 10,850-10,800 levels. On the higher side, resistance is placed at 10,930 levels.

Bank Nifty remained range bound for the most part of the trading session but trading range is slightly shifting higher towards immediate hurdle of 26,750 zones.

The Nifty which opened at 10,887 rose to an intraday high of 10,893 but failed to hold on to morning gains and slipped towards 10,850. The index closed 13.85 points higher at 10,856.70.

India VIX fell down by 1.65 percent at 12.52 levels. On the options front, maximum Put OI is placed at 10,700 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,900 strikes.

According to Pivot charts, its key support is placed at 10,835.2, followed by 10,813.7. If the index starts moving upward, key resistance levels to watch out are 10,885.7 and 10,914.7.

The Nifty Bank index closed at 26,642.8. The important Pivot level, which will act as a crucial support for the index, is placed at 26,572.21, followed by 26,501.6. Key resistance levels are placed at 26,739.41, followed by 26,836.0.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

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.

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 percent, to 25,201.2, the S&P 500 lost 11.22 points, or 0.40 percent, to 2,775.63 and the Nasdaq Composite dropped 8.10 points, or 0.11 percent, to 7,695.70.

Asian shares trade lower

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 percent in early trade. South Korea's KOSPI was off 0.9 percent, while Australia's market slipped 0.2 percent. Japan's Nikkei shed 0.7 percent.

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 percent. Nifty futures were trading around 10,810-level on the Singaporean Exchange.

Fitch ups India growth forecast to 7.4% for FY'19

Fitch Ratings yesterday raised India growth forecast for 2018-19 to 7.4 percent from 7.3 percent, but cited higher financing costs and rising oil prices as risks to growth. For 2019-20, it estimated the country to grow at 7.5 percent.

“We have revised up our forecast for 2018-19 growth to 7.4 percent from 7.3 percent in March. However, higher financing costs (stemming from monetary tightening and higher market premiums) and rising oil prices should limit the upside to growth,” Fitch said in its Global Economic Outlook.

US treasury yields jump after Fed decision

US Treasury yields jumped and Wall Street reversed earlier gains to close lower on Wednesday, after the Federal Reserve raised interest rates and signaled that two more hikes could be coming this year.

Benchmark 10-year US. Treasury notes last fell 6/32 in price to yield 2.9774 percent, from 2.957 percent late on Tuesday. The 30-year bond last fell 3/32 in price to yield 3.0967 percent, from 3.092 percent Tuesday.

Oil prices fall as US crude production hits another record

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 were at USD 76.46 per barrel down 28 cents, or 0.4 percent, from their last close. US West Texas Intermediate crude futures were at USD 66.58 a barrel, down 6 cents from their last settlement.

Rupee drops 16 paisa to near 1-week low

The rupee yesterday slid further by 16 paise to close at near one-week low of 67.65 against the US currency on sustained dollar demand. The domestic currency opened weak at 67.62 per dollar and oscillated between 67.55 and 67.71 during the day amid suspected dollar selling by the central bank.

Higher trade gap pushes FY18 CAD over three times to $48.7 bn

Current account deficit (CAD) jumped over three times to USD 48.7 billion, or 1.9 percent of the country's GDP, in FY18 from USD 14.4 billion or 0.6 percent in the previous year, driven by higher trade deficit, Reserve Bank said.

For the March quarter, CAD, which is the difference between forex receipts and payments, rose manifold to over USD 13 billion, or 1.9 percent of GDP, from a low USD 2.6 billion, or 0.9 percent, in the year-ago period, the RBI said.

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 percent in May.

Sebi cancels registration of JP Morgan Mutual Fund

Securities and Exchange Board of India (Sebi) on Wednesday cancelled the registration certificate of JP Morgan Mutual Fund following the transfer of its schemes to Edelweiss Mutual Fund.

Besides, Sebi has withdrawn the approval given to JP Morgan Asset Management India to act as an asset management company (AMC) to JP Morgan Mutual Fund.

Fine Organic IPO to open on June 20, aims to raise Rs 600 cr

Indian additives maker Fine Organic Industries Ltd has set a price range of Rs 780-783 a share for an initial public offering (IPO) that will open on June 20, according to a public notice on Wednesday.

Fine Organic’s founders will sell up to 7.7 million shares through the IPO, comprising a quarter of the post-offer share capital of the company. Edelweiss and JM Financial are the bookrunners for the sale.

4 stocks under ban period on the NSE

Securities in ban period for the next day's trade under the futures and options segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

For June 14, Balrampur Chini, DHFL, Jet Airways and Just Dial are present in the F&O ban list.

With inputs from Reuters & other agencies