The Federal Reserve left interest rates unchanged and signaled it would keep them on hold through 2020 amid a solid economy, sticking to the sidelines during an election year.
“The committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric 2% objective,’’ the Federal Open Market Committee said in a statement Wednesday following a two-day meeting.
The benchmark S&P 500 stock index slightly extended modest gains on Wednesday after the U.S. Federal Reserve held interest rates steady and signaled that borrowing costs are likely to remain unchanged indefinitely.
The U.S. central bank said moderate economic growth and low unemployment are expected to continue through next year's presidential election.
Nifty reversed from its strong support zone of 11,850-11,800, hinting same levels will act as immediate support in the next session, while resistance is coming near 11,950-12,000 zone
- Rohit Singre, Senior Technical Analyst, LKP Securities
Is it time to add quality stocks on dips?
Selling may halt now, as the index respected its key support area of 11,800 after a decline of 300 points due to profit taking from its lifetime high of 12,158. The index needs to negate formation of lower lows of last four sessions by surpassing 11,923 to witness an upmove towards the 12,000-12,035 zone. On the downside, major support exists at 11,800
Nifty and Sensex managed to close higher on the back of specific measures that the government has taken to improve the health of NBFCs and HFCs. The details might come in the evening or on Thursday, but such type of measures always boost the sentiment
After a subdued trade during most part of the day, market witnessed a sharp turnaround due to short covering in index heavyweights. Upcoming macro indicators such as CPI inflation and IIP data are unlikely to paint a rosy picture, which may reduce upside potential in the near term. On the global front, FOMC meeting, UK election and US tariff deadline remain key events
Vinod Nair, Head of Research at Geojit Financial Services
As bulls remain on the sidelines, moves are choppy and recoveries are not sustaining. We continue with our near term view of consolidation phase in the market. Market breadth yet again remained on the weaker side. Support zone of 11,700 is likely to get tested on the downside, which may be a good time to play contra and go long on the index near key important support zone. Support: 11,800-11,700 & Resistance: 11,950-12,020
- Amit Shah, Technical Research Analyst with Indiabulls Ventures
In the absence of any major local triggers, participants are closely following the global cues and we do not see this changing anytime soon. Markets will react to the US Fed commentary in early trade on Thursday. We expect volatility to remain high thus advise preferring hedged bets instead of naked trades. In case of a further rebound, Nifty would face hurdles around 12,050-12,100 zone.
- Ajit Mishra, VP - Research, Religare Broking
S&P may slash India rating on growth concerns: Reports
Rating agency S&P may lower India’s rating if the growth does not recover, ETNow reported quoting agencies. However, the rating firm added India's long-term economic outperformance remains intact.
"We are forecasting real GDP growth to decelerate to 5.1 per cent in FY20," it said.
Bond yields spiked after S&P flagged risk to sovereign ratings. The 10-year-benchmark bond yield was up 0.70 per cent at 6.76 per cent at around 3.45 pm (IST).
CLOSING BELL: Fag end buying sends Sensex 173 pts higher; Nifty tops 11,900; YES Bank plunges 14%, ZEEL rises 5%
GST rates may go up for various items to meet revenue shortfall
Next set of reforms could be on supply-side: Radhika Rao
Future Supply rises as CCI approves stake acquisition by Nippon Express
Shares of Future Supply Chain Solutions Ltd's shares on Wednesday rose over 6 per cent as Competition Commission approved acquisition of 22 per cent stake in the logistics firm by Nippon Express. On the BSE, the scrip opened on a positive note and further climbed 6.69 per cent to Rs 534.95. The shares appreciated 5.98 per cent to Rs 529 on the NSE.
Moody's says outlook for european banks turns negative as economic growth weakens
Financial planners believe the forthcoming issue of L&T Finance NCD which opens on December 16, could be a good buy for investors especially retirees and those in the low tax bracket. The non-convertible debentures offer interest rates as high as 8.65% to retail investors and come with tenures of 3, 5 and 7 years. As compared to this a fixed deposit from State Bank of India, offers a maximum of 6.25%, thereby giving investors a lucrative spread.
Qatar Investment Authority is all set to buy a minority stake of around 25% in Adani Electricity Mumbai Limited (AEML) — the flagship power transmission and distribution asset in Gautam Adani’s empire. The 14-year-old sovereign wealth fund of the oil-rich Gulf nation is likely to invest as much as Rs 3,300-3500 crore for a minority, valuing the business at Rs 13,200 crore, said people aware.
BSE announces market holidays for 2020
Just In | Nippon Express recieved nod to acquire 22% stake in Future Supply: Agencies
Vodafone Idea jumps 5% on reports of fundraising plan
Shares of Vodafone Idea surged 8 per cent in Wednesday's session amid reports that the company was planning to raise $2.5 billion by sale of assets.
ET quoting sources reported that the telecom operator was in talks to sell its optic fibre business to Brookfield Asset Management Inc. and its data centre to the Edelweiss Group as the telco seeks to raise over $2.5 billion from asset sales ahead of a January deadline to pay statutory dues.
“The company is in talks with global asset manager Brookfield to sell its 156,000 km of optic fibre assets and Bank of America and Morgan Stanley are the bankers helping Vodafone negotiate with potential buyers,” the report quoted a source.
SFIO begins probe against CG Power and Industrial Solutions, 15 group firms
Price as on 11 Dec, 2019 10:56 AM, Click on company names for their live prices.
Will the bulls make a comeback?
#NIFTY sees Put builds It seems like the lower levels of today will be defended. Put OI additions early in the day… https://t.co/6fIfRJtyOd
Shares of YES Bank cracked nearly 8 per cent in Wednesday's session as doubts still loomed over the lender's fundraising plans.
YES Bank said that $1.2 billion investment by Canadian investor Erwin Singh Braich was still under consideration.
Moreover, the board is also willing to favourably consider a $500 million offer from Citax Holdings and Citax Investment, it said.
Other investors who had shown an interest in YES Bank include Discovery Capital and Aditya Birla Family Office.
YES Bank, Vodafone Idea, Dish TV among most active stocks on NSE
Price as on 11 Dec, 2019 09:48 AM, Click on company names for their live prices.
Intra-day future recommendation
Sell Nifty in the range of 11,915-11,940
Sell Bank Nifty in the range of 31,300-31,350
Buy Divis Laboratories in the range of Rs 1,815-1,817
Sell United Breweries in the range of Rs 1,199-1,200
OPENING BELL: Sensex rises 75 points, Nifty nears 11,900; Vodafone Idea, Dish TV gain up to 7%
Pre-open session: Sensex up 40 pts, Nifty above 11,850; rupee trades at 70.85 against dollar
Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 8.5 points, or 0.07 per cent, up at 11,915.50, indicating a flat start for Dalal Street.
Tech view: Nifty forms bearish candle
The 50-share index ended the day at 11,856, even as the price chart formed a Big Black Body that engulfed the small body of the previous session. “The near-term upward momentum is fading out, and a phase of correction or consolidation is setting in,” said Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures.
Asian shares flat
Asian stocks flatlined on Wednesday as Sino-US trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race knocked the pound. Investors are beginning to suspect that even if US tariffs due to take effect on Sunday are delayed, it may be 2020 before Washington and Beijing can agree a broader rapprochement.
US stocks close lower
Wall Street's main stock indexes ended slightly lower on Tuesday, though not far from record highs. The Dow Jones Industrial Average fell 27.88 points, or 0.1 per cent, to 27,881.72, the S&P 500 lost 3.44 points, or 0.11 per cent, to 3,132.52 and the Nasdaq Composite dropped 5.64 points, or 0.07 per cent, to 8,616.18.
FIIs sell Rs 367 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 366.79 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 338.4 crore, data suggests.
Crude prices slip
Oil prices fell on Wednesday after industry data showed a surprise build in crude oil inventory in the United States. Brent futures fell by 37 cents, or 0.6 per cent, to $63.97 per barrel by 0121 GMT. US West Texas Intermediate crude slipped by 30 cents, or 0.5 per cent, to $58.94 a barrel.