US Treasury yields turned lower on Wednesday after the Federal Reserve held interest rates steady, as expected, but flagged possible rate cuts of as much as half a percentage point later this year.
U.S. yields hit session lows after the Fed decision, with those on two-year notes hitting two-week troughs, after trading higher all day.
The dollar weakened against other major currencies on Wednesday after the Federal Reserve held interest rates steady at its regular meeting, but signaled a possible rate cut of as much as a half a percentage point by the end of the year.
Against the euro, the dollar was down 0.46% to $1.124 , and against the pound it was down 0.8% to $1.267. The dollar index, which measures the currency against a basket of six rivals, was down 0.51% to 97.148. The drop slowed however as the market digested the news and some initial losses were retraced.
The Federal Reserve indicated a readiness to cut interest rates for the first time in more than a decade to sustain a near-record U.S. economic expansion, citing “uncertainties” in their outlook.
While Chairman Jerome Powell and fellow policy makers left their key rate in a range of 2.25% to 2.5% on Wednesday, they dropped a reference in their statement to being “patient” on borrowing costs and forecast a larger miss of their 2% inflation target this year.
Wall Street rose on Wednesday after the Federal Reserve held interest rates steady, as expected, and signaled potential cuts later this year. Saying it "will act as appropriate to sustain" economic expansion, the central bank signaled rate cuts of as much as half a percentage point over the remainder of 2019. All three major indexes rose following the announcement.
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Nifty continues to consolidate in a broad range between 11,650 and 12,000 levels with buying support at the lower end of the range. We expect a bounceback towards the 11,850-11,900 range from current levels. The health of the broader market continues to be weak and, hence, the pace of recovery is expected to remain slow. Private banking and cement stocks are expected to lead while metals and auto stocks are likely to see weakness
- Sahaj Agrawal, Head of Derivatives, Kotak Securities
Sustaining above the 50-DMA on closing basis indicates that there can be a decent pullback attempts going forward, which will be confirmed on a close above 11,800 level. In that scenario, initially, a modest target of 11,920 can be expected. Traders are advised to avoid shorting the index whereas those with high-risk appetite can create a positional bet on the long side with a stop loss below 50 DMA on closing basis
Apart from a black body that occurred on the candles, no important formations were seen. We continue to expect the market to attempt more pullbacks
- Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory
Nifty broke previous day’s low and surpassed the previous day’s high, but finally closed on a flat note. However, every bounce is getting sold into while every minor dips are getting bought into. The index is trying to respect its 50-day EMA for last three sessions on a closing basis. As long as it holds below 11,761 level, the upside will remain restricted. But a hold below 11,666 level could open Nifty to declines towards 11,600 and then 11,550 levels
Signs of capitulation in the Indian market are visible with across the board selling in high debt balance sheets. Today’s case is similar to traders in derivative segments wherein huge leverage hampers trading profits. Similarly, leveraged corporates are facing the same reality. No one makes money under a mountain of debt. Historically, such capitulation has signaled the end of bearish tendencies in the market. Nifty although may not reflect such a cycle, but small and mid-cap indices are revealing a clearer picture. Infact the small cap index has broken the Modi 2.0 gap area which is an ominous signal for the market
- Umesh Mehta, Head of Research, Samco Securitiesa
Despite global trade optimism, domestic market failed to hold the opening gains due to concern over weakening economic data, lack of liquidity and deficit in monsoon. The earnings growth is likely to be downgraded further given the deteriorating situation. Seems that market will have to wait till the final budget which could be the testimony of the new plan.
- Vinod Nair, Head of Research, Geojit Financial Services
Sensex gives up most gains, ends 66 points higher; Nifty below 11,700; Jain Irrigation tanks 31%, Jet Airways 18%
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OPEC, non-OPEC to meet next on July 1-2: OPEC website
Apple mulls shifting 15-30% output from China: Agencies
Blue Star wins order worth Rs 253 crore from Mumbai Metro Rail Corporation
Price as on 19 Jun, 2019 01:58 PM, Click on company names for their live prices.
Jain Irrigation, Jet Airways and Arvind among top 10 losers in afternoon session
Price as on 19 Jun, 2019 01:50 PM, Click on company names for their live prices.
Australian shares end at best in over 11 years
Australian shares ended at their best since the global financial crisis on Wednesday, as investors took heart from the United States and China rekindling trade talks, expectations for lower US interest rates, and the European Central Bank's surprise dovish tilt.
The S&P/ASX 200 index climbed 1.2 per cent to 6,648.1, its highest since December 2007. It had risen 0.6 per cent on Tuesday when Australia's central bank had pointed to further policy easing in the future.
China is the biggest buyer of Australia's resource exports, so metals and mining stocks were the biggest gainers on the day, having added 1.6 per cent to a near 8-year best.
M&M to hike price of its range of personal vehicles by up to Rs 36,000 from July 1
Price as on 19 Jun, 2019 12:55 PM, Click on company names for their live prices.
Airtel Africa files application to list on Nigeria stock exchange: Agencies
Arun Thukral makes a case for investing in SIPs
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Federal Bank to raise up to Rs 500 cr through Basel III-compliant bonds
Private sector lender Federal Bank Wednesday announced plans to raise up to Rs 500 crore by issuing Basel III-compliant bonds on private placement basis.
"The board of the bank has approved the issuance of 1,000 unsecured, listed, redeemable Basel III compliant tier II bonds having a face value of Rs 10 lakh each, with an option to retain oversubscription up to Rs 400 crore aggregating to Rs 500 crore (debentures), on a private placement basis," Federal Bank said in a BSE filing.
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Shares of Jain Irrigation Systems cracked almost 19 per cent to hit their 52-week low at Rs 22.30 in Wednesday's session and looked on course to extend their losing streak into the fourth successive day.
The stock has been reeling under pressure on reports of defaults followed by rating downgrades.
India Ratings and Research downgraded the Jalgaon-based company’s long-term issuer rating to ‘IND BBB’ from ‘IND A-’ while placing it on ‘Rating Watch Negative’ (RWN).
Jain Irrigation shares fell 73 per cent in the last one year and ended at Rs 27.40 on Tuesday, down 21.15 per cent over the previous day.
Tata Steel jumps 4%, on course to break 4-day losing streak
Shares of Tata Steel jumped 4 per cent in the morning session on Wednesday and looked on course to break their losing streak of the last four consecutive sessions.
The stock opened at Rs 480.20 on BSE and touched intraday high and low at Rs 492 and Rs 480.20 in Wednesday's trade so far.
Global financial firm Goldman Sachs has maintained a buy recommendation on the stock with a target price of Rs 570 per share even as steel spreads are weakening on global growth concerns.
Goldman highlighted that the domestic demand for steel is resilient but spreads are unlikely to bounce back.
Shares of Can Fin Homes jumped over 5 per cent while those of Canara Bank climbed almost 2 per cent in morning trade on Wednesday after Canara Bank's board approved plan to sell part or full stake in housing finance subsidiary Can Fin Homes. Last year, Canara Bank had called off the move to divest its entire shareholding in housing finance subsidiary Canfin Homes after receiving lower than expected price quotation.
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Maharashtra Scooters climbs 2% as Bajaj Holdings buys stake
Shares of Maharashtra Scooters climbed 2 per cent in early trade on Wednesday after Bajaj Holdings and Investment acquired 27 per cent stake in the company.
Maharashtra Scooters (MSL) the maker of the once popular Priya brand of scooters, has become a subsidiary of Bajaj Holdings and Investment (BHIL) following the Western Maharashtra Development Corporations (WMDC) transferring its 27 per cent stake in MSL to the company after a protracted legal battle.
"WMDC has transferred its 27 per cent stake in MSL to the Bajaj Holdings and Investment Ltd (BHIL) on June 17. With this, the company now holds 51 per cent shares in MSL, thereby making it a subsidiary of Bajaj Holdings," MSL said in a BSE filing.
HCL Tech signs multi-year deal with Cricket Australia
Price as on 19 Jun, 2019 10:01 AM, Click on company names for their live prices.
Fed governor commentary is expected to remain dovish and that could keep the greenback under pressure. Today, USDINR pair is expected quote in the range of 69.40 and 70.05-70.20
- Motilal Oswal Financial Services
Jain Irrigation, RPower, YES Bank among most active stocks in early trade
Price as on 19 Jun, 2019 09:41 AM, Click on company names for their live prices.
Sensex jumps 100 points, Nifty nears 11,750; rupee opens at 69.56 against US dollar
Singapore trading hints at a positive start
Around 6:50 am (IST), Nifty futures on the Singapore Exchange traded 62 points, or 0.53 per cent, higher at 11,774, indicating a positive start for Dalal Street.
Tech view: Nifty forms a small bullish candle
Nifty50 ended a volatile session in the green on Tuesday and formed a small bullish candle on the daily chart. The session was technically important as the index managed to defend its 50-day moving average, which currently stands at 11,680, on a closing basis. Technical analysts expect Nifty to make some attempts to gain stability which may result into mild technical pullbacks. However, pullbacks are expected to remain limited.
Asia stocks jump
Asia stocks jumped on hopes that Fed will at least open the door to future rate cuts if it does not do so today. The reports of US-China talks next week also gave a shot in the arms of the markets. Japan’s Nikkei rose 1.5 per cent and South Korea's Kospi 1.1 per cent.
US stocks close higher
The Dow ended Tuesday's session with gains of 1.35 per cent, while the S&P 500 rose 0.97 per cent and the Nasdaq 1.39 per cent. The S&P 500 has gained 6 per cent so far this month to be 1 per cent from the all-time high hit in early May. All eyes are now upon the Fed which is scheduled to release a statement later today.
Dollar near two-week high
The US dolalr hovered near a two-week high level ahead of Fed's monetary policy decision. The dollar index versus a basket of six major currencies was steady at 97.615 after climbing to 97.766 on Tuesday, its highest level since June 3, Reuters reported.
Crude oil rises
Oil prices rose, extending gains from the previous session on rekindled hopes over a US-China trade deal and on continued tensions in the Middle East after tanker attacks there last week.
FPIs buy Rs 32 crore worth equities
Foreign portfolio investors (FPIs) bought Rs 31.73 crore worth of domestic stocks on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 181.03 crore.
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