“Indian markets have sharply reacted to major decisions by U.S. Fed and slide in the Wall Street, in the short term, but there is no cause for concern as the dichotomy between Indian and U.S. markets is rising”, said G Chokkalingam, founder, Equinomics Research & Advisory.
Fed Chair Jerome Powell said that the U.S. central bank will maintain a “restrictive enough” policy stance to control inflation.
U.S. central bankers see the policy rate, now in the 4.25%-4.5% range after Wednesday’s 50-basis-point increase, rising to 5.1% by the end of next year, according to the median estimate in the Fed’s quarterly summary of economic projections published at the end of its two-day meeting.
That is a half percentage point higher than they forecast in September.
Wall Street equities slid overnight after the statement, with all the key indexes logging losses.
Asian markets declined, with the MSCI Asia ex Japan sliding 0.99%.
Among the major sectoral indexes, Nifty IT fell the most, shedding over 1%. All ten constituents of the IT index declined.
Equinomics’ Chokkalingam said that it was time to buy select IT firms as the correction would “lead to a substantial contraction in valuations”, making the stocks attractive.
Among individual stocks, Indian Railway Catering and Tourism Corp shed 5% after the government said it will sell an up to 5% stake in the company.
!1 New UpdateClick here for latest updates
IDFC FIRST BANK: 12.7 lakh shares change hands via block deal
Price as on 15 Dec, 2022 02:00 PM, Click on company names for their live prices.
Piramal Capital & Housing Finance on Thursday announced the opening of its ‘Innovation Lab’ at Bengaluru, where it aims to have a team of over 300 professionals for various tech and business intelligence positions by the end of financial year 2022-23.
Price as on 15 Dec, 2022 01:59 PM, Click on company names for their live prices.
IRCTC OFS UPDATE: Non-retail portion subscribed 0.32x
Price as on 15 Dec, 2022 01:36 PM, Click on company names for their live prices.
eClerx approves final buyback price of Rs 1,750 per share (From Agencies)
Price as on 15 Dec, 2022 01:34 PM, Click on company names for their live prices.
These stocks bucked the market trend, rose up to 9%
Price as on 15 Dec, 2022 01:28 PM, Click on company names for their live prices.
STOCK IN FOCUS: TATA ELXSI
#StocksInNews | @tataelxsi opens digital engineering center at Frankfurt (From Agencies) #Tata #StocksToWatch… https://t.co/4E3DlSKbtg
— ET NOW (@ETNOWlive) 1671088566000
Global Market Check
- Futures on the S&P 500 were little changed
- Nasdaq 100 futures fell 0.2%
- Japan’s Topix Index fell 0.2%
- The Hang Seng Index fell 1.5%
- The Shanghai Composite Index fell 0.3%
- Euro Stoxx 50 futures fell 0.5%
In the red! Nifty nears 18,500
MARKET LIVE UPDATES: SENSEX FALLS OVER 450 POINTS
Sensex at day’s low, check out the top gainers & losers
PSU banks continue to shine; check out the top gainers
Price as on 15 Dec, 2022 12:08 PM, Click on company names for their live prices.
What are UBS and Nomura’s outlook for 2023? Watch this
#MarketsWithETNOW | As we head towards the new year, brokerages share their outlook for 2023 Pankaj Poddar joins… https://t.co/RgmpIx6uz8
— ET NOW (@ETNOWlive) 1671079347000
Biotechnology major Biocon on Wednesday said it has initiated a clinical study in collaboration with Equillium Inc to evaluate efficacy of Itolizumab in patients with Ulcerative Colitis. This is a phase two randomised, double-blind, parallel-group, placebo and active-controlled (adalimumab), two treatment period study to evaluate the safety and efficacy of Itolizumab for the induction of remission in biologics naive patients with moderate to severely active Ulcerative Colitis (UC), Biocon said in a statement.
Price as on 15 Dec, 2022 11:37 AM, Click on company names for their live prices.
Market LIVE Updates: Jai Balaji Industries approves issue and allotment of up to 22 million warrants worth up to Rs 99 crore
Price as on 15 Dec, 2022 11:29 AM, Click on company names for their live prices.
Adani Power among world’s best performing stocks of 2022
IRCTC, IRCON among worst performing stocks on NSE
Price as on 15 Dec, 2022 11:21 AM, Click on company names for their live prices.
Indian markets have also opened negative following US markets, following the expectations of recession / slowdown and more hawkish comments from Fed. However, this is after a reasonable rally post US and India inflation data. Markets have not completely given up the gains. While there is hope of softer Fed action, the risk is now shifting to “hard landing”. For India and the RBI, there is the cushion of domestic economy holding with the external headwinds. RBI policy raised 35 bp this time, but if inflation comes below 6% for another time, there is a larger scope for pause
– Anitha Rangan, Economist, Equirus
Overnight interbank call money rate at 44-month high
Source: Reuters
The US Fed hikes the policy rate by 50bps to 4.25-4.5%, as expected. However, the FOMC members’ projections revise the peak rate higher to 5-5.25% (up 50bp from Sep projections). Notwithstanding some initial signs of weakening economy, the FED (rightly) continued to worry about strong labour market. Interestingly, although growth projection was revised down (to 0.5% from 1.2%) for CY23, the unemployment rate revisions were only marginal (4.6% to 4.4%). Overall, we are more convinced that while a FED pause could come by mid-CY23, a cut is unlikely before CY24 now. This move and stance by Fed could trigger small correction in Indian market which has been outperforming YTD. We dont see a case for deep correction in our markets given the drop in crude and commodity prices and likely margin expansion for many sectors like cement, consumer, auto and speciality chemicals. Nifty should cross, 20,000 mark some around Budget i.e. Feb 2023.
– Hemang Jani, Head of Equity Strategy, Motilal Oswal Financial Services
IT stocks fall the most in today’s trade. Check out the top losers
Price as on 15 Dec, 2022 10:31 AM, Click on company names for their live prices.
KPI Green Energy receives order of 33 MWe Solar Power Plant under Captive Power Producer Segment.
Price as on 15 Dec, 2022 10:26 AM, Click on company names for their live prices.
Sensex tumbles 300 pts
Market View: Apurva Sheth, Head of Market Perspectives & Research, Samco Securities
Back home, how this will impact domestic interest rate regime is going to be interesting.
RBI has dodged the being in a box and kept a free hand in deciding policy rates depending on the inflation and growth numbers at home and the US Fed’s interest rates. With US interest near its peak, RBI will also keep a close eye and could probably be the first central bank to stop hiking rates since it was amongst the first one to hike.
BLOCK DEAL IN NYKAA
#MarketAlert | @MyNykaa has 1.3% of equity change hands in a bunched trade #StockMarket #StocksToWatch https://t.co/mkaDI6IRUm
— ET NOW (@ETNOWlive) 1671075991000
NTPC commercialised and began operations of the second part capacity of 67.73 Megawatt out of 230 Megawatt Ettayapuram solar PV project.
Price as on 15 Dec, 2022 09:56 AM, Click on company names for their live prices.
Street View | Rajeev Thakkar of PPFAS on US tech stocks
#BeatTheStreet | @RajeevThakkar of @PPFAS says -US tech cos underlying growth is intact -Underlying trends for… https://t.co/wcAeoNZ2HS
— ET NOW (@ETNOWlive) 1671077528000
Dilip Buildcon executed a contract agreement worth Rs 1061 crore with the Gujarat Metro Rail Corporation.
Price as on 15 Dec, 2022 09:52 AM, Click on company names for their live prices.
Poonawalla Fincorp said on Wednesday it would sell its housing finance unit to an affiliate of U.S. private equity firm TPG Global for 39 billion rupees ($473 million), as the Indian non-bank lender switches focus to technology-led growth.
Price as on 15 Dec, 2022 09:47 AM, Click on company names for their live prices.
Market Live Updates: Sensex extends fall, down 250 points
SECTOR WATCH: IT pack falls most; PSU banks continue to shine
India will sell an up to 5% stake in Indian Railway Catering and Tourism Corp (IRCTC) , the company said in a filing on Wednesday, as the government seeks to meet a steep divestment target for the year. The government is looking to sell a 2.5% stake in the state-owned firm at 680 Indian rupees per share, with an option to additionally offload 2.5%. At that price, offloading 5% of IRCTC could fetch around 27.2 billion rupees ($329.90 million), a Reuters estimate showed.
Price as on 15 Dec, 2022 09:24 AM, Click on company names for their live prices.
Even though the Fed downshifted the rate hike to 50 bp as expected, the tone of the commentary was unexpectedly hawkish. The FOMC statement, “the ongoing hikes will be appropriate to reach a sufficiently restrictive stance that returns inflation to 2% over time” is hawkish but the market seems to ignore this expecting inflation to cool down earlier than Fed’s expectations. Globally, equity markets would be watching out for the ECB and BoE decisions today, which are also likely to be 50 bp hikes. The Indian market, though not completely decoupled from the mother market US, has been charting a slightly different path exhibiting surprising resilience even in the face of global weakness. This is due to India’s superior growth and earnings prospects, going forward. However, high valuations and rising interest rates are likely to restrain the ongoing rally. Fixed income assets are becoming attractive.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Active stocks in morning trade
Price as on 15 Dec, 2022 09:20 AM, Click on company names for their live prices.
Opening Bell: Sensex falls 150 pts, Nifty below 18,650; Dish TV gains 5%, IRCTC sheds 5%
Sapphire Foods: 68.2 lakh shares change hands via block deal
Price as on 15 Dec, 2022 09:13 AM, Click on company names for their live prices.
Pre-open session: Sensex slips over 80 points; Nifty below 18,620
Asian stocks sag with dollar as hawkish Fed spurs recession fears
Asian stocks sagged on Thursday, tracking declines on Wall Street, after the U.S. Federal Reserve projected higher interest rates for a longer period.
Oil prices largely unchanged amid demand hopes, interest rate hike
Oil prices were largely unchanged in early Asian trade on Thursday as traders weighed optimism over China’s demand outlook against the possibility of further interest rate hikes from global central banks.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 15.5 points, or 0.08 per cent, lower at 18,734.50, signaling that Dalal Street was headed for a negative start on Thursday.
Tech View: Nifty forms doji candle on daily charts
Headline equity index Nifty today formed a doji pattern on the chart, suggesting indecision ahead of the US Fed meet outcome later in the night. Analysts said normally such candle formations after a reasonable rise signals volatility at the highs and sometimes acts as a reversal pattern post confirmation.
Tokyo open down after Fed hints at more rate hikes
Tokyo stocks opened lower on Thursday after the US Federal Reserve sketched out plans for additional interest rate hikes despite recent data showing an easing in inflation. The benchmark Nikkei 225 index was down 0.55 percent, or 154.39 points, at 28,001.82 in early trade, while the broader Topix index slipped 0.45 percent, or 8.89 points, to 1,968.53.
Wall Street ends lower after latest Fed rate hike
U.S. stocks closed lower in volatile trading on Wednesday following a policy announcement by the Federal Reserve that raised interest rates by an expected 50 basis points, but its economic projections see higher rates for a longer period.
Rupee recovers 11 paise to close at 82.49 against dollar
The rupee gained 11 paise to settle at 82.49 against the US dollar on Wednesday as a positive trend in domestic equities and easing inflationary pressures strengthened investor sentiment.
Sensex, Nifty on Wednesday
The 30-share Sensex ended 145 points higher at 62,678, while its broader peer Nifty 50 ended above 18,650 level.
Good morning, dear reader! Here’s something to kickstart your trading day
Read More: sensex today: Stock Market LIVE Updates: Sensex tanks 500 pts, Nifty below 18,550; all