New York: Oil prices jumped Thursday on rising US-Iran tensions, with gains accelerating on a cryptic tweet by US President Donald Trump after Iranian forces shot down a US spy drone.
"Iran made a very big mistake!" Trump tweeted in his first public reaction to the strike.
The S&P 500 index hit a record high on Thursday, after the Federal Reserve indicated that it could cut interest rates as soon as next month to offset growing risks to global and domestic growth.
The U.S. central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to "act as appropriate" to sustain economic health.
Market was concerned that government has not yet provided any hint or relief to the slowing economy. On hearing a series of meetings by PM and FM to draw a road map for 100 days agenda and budget, provided a confidence to the market. Additionally, GST council is likely to meet and review its position. Also a relief rally in the global market given the dovish view by Fed supported the domestic market
- Vinod Nair, Head of Research, Geojit Financial Services
ETMarkets Evening Podcast: Bulls are back, or are they?
The National Company Law Tribunal (NCLT) on Thursday admitted the State Bank of India-led lenders’ insolvency application against grounded Jet Airways.
The tribunal, which will hear the case next on July, declared a moratorium on recovery of dues from Jet Airways.
The resolution profession has been asked to try and close the Jet's IBC (Insolvency and Bankruptcy Code) process within three months.
Gold shines brighter
The yellow metal surged to almost six-year high after Fed hints at rate cut. Metal prices shot up Thursday, lifted by a weaker dollar, after the Federal Reserve suggested it was willing to lower in.
Oil on the boil
Middle East clashes send oil sharply higher. Brent crude rose 2.6% after Iran said it had shot down a US drone.
FIIs net sell Rs 438.41 crore, while DIIs net buy Rs 1,241.23 crore in equities today (provisional).
Post yesterday’s capitulation, the gloominess in the markets took a U-turn and most of the debt-laden companies, which cracked yesterday, showed a sudden upmove today. This is a clear indication of a dead cat bounce where fundamentally weak companies face sudden moves for no sound reason. There is a high probability that the capitulation is done as of now and markets are trying to stabilise. The present scenario is that of chaos with many fragmented pockets, which need to converge for a full throttle rally. Hopefully the Budget in July will bring out some clear trend in the bourses and help to retrieve the lost confidence among the retail investors
- Umesh Mehta, Head of Research, Samco Securities
We may see some consolidation in the following session; however, movement on the stock specific front would keep the traders busy. Nifty should hold above 11,800 for further up move else profit taking may resume. Traders are advised to maintain positive yet cautious approach.
- Jayant Manglik, President - Retail Distribution, Religare Broking
The earnings performance of corporates over the last couple of quarters have been picking up though not in a secular manner. The texture, quality of earnings is improving. Going forward, the growth quantum may fluctuate but the direction is expected to continue northwards. Hence, one should look at any market correction as an opportunity for long-term investment.
Shares of Jet Airways on Thursday vaulted a whopping 122.21 per cent to close at Rs 73.55 on NSE.
"Short covering in series derivatives pushed the stock higher. It might see higher levels from here as well," said Sameer Kalra, Founder, Target Investing.
As per a Bloomberg report, the National Company Law Tribunal will pass an order at 5 pm today on whether the bankruptcy case will be admitted.
The present scenario is that of chaos with many fragmented pockets which need to converge for a full throttle rally. Hopefully the Budget in July will bring out some clear trend in the bourses and help to retrieve the lost confidence among the retail investors.
Iran has shot down a US drone which the elite Revolutionary Guards said on Thursday was flying over southern Iran, raising fears that a major military confrontation could erupt between Tehran and Washington. Guards website Sepah News said the "spy" drone was brought down over the southern Iranian province of Hormozgan, which is on the Gulf.
Sandip Sabharwal on Jet Airways
People wanting to punt in beaten down stocks is understandable But for what reason would someone want to Buy Jet Ai… https://t.co/p6Gxzf4IaS
If you look at the exposure, the problem is quite large because the average NBFC plus HFC exposure of only the mutual funds is close to Rs 3 lakh crore. Now, that is a sizable number viewed in the larger context. It is not that everything is having an issue but we need to get confidence as to how much of it is under the cloud and what can be done in terms of recapitalising or getting it to stabilise. The challenge today is that nobody knows the extent of the issues in these companies and that is what is creating volatility and panic.
- Sameer Narayan
Bombay Dyeing extends loss to 11th day
LTCG: Scrap it or raise it?
The two ways in which the LTCG tax issue can be viewed: 1. There is anyway going to be no Capital gains ( given sta… https://t.co/esvcgXqg4B
Sticking to its guns, the Federal Reserve on Wednesday left interest rates unchanged, but signalled that it would be willing to cut them later this year amid “uncertainties” over the US economic outlook. The benchmark lending rate stayed in a target range of 2.25 per cent to 2.5 per cent.Flagging concerns over poor macro data, policy makers at the US central bank lowered their assessment of economic activity to “moderate” from “solid” in the May policy statement.
DBS revises India GDP forecast for FY20 down to 6.8%
DBS Bank has revised India's GDP growth for fiscal year 2020 downwards to 6.8 per cent year-on-year (YoY) from 7 per cent projected earlier, citing headwinds for exports amidst challenging trade outlook.
“Growth headwinds swiftly turn attention to the likely policy response. We expect monetary policy to do much of the heavy lifting, given limited fiscal leeway,” the bank in its report on the Indian economy on Thursday.
The Reserve Bank of India's policy stance was changed from neutral to accommodative, opening the door to further easing, wrote Radhika Rao, Economist at DBS Group Research, pointing out the 75 bps repo rate cut so far this year “We revise down our real GDP forecast for FY20 to 6.8 per cent YoY versus 7 per cent earlier,” the bank said.
Top 10 NSE losers at 11.30 am
Jet shares lose another 18% to hit fresh all-time low
Falling for the 14 sessions in a row, shares of Jet Airways plunged 18 per cent to hit fresh all-time low at Rs 27 in Thursday's session.
Indian lenders’ efforts to initiate insolvency proceedings against Jet are facing a fresh challenge, with the trustee appointed by a Netherlands court, which had last month declared the grounded airline bankrupt, seeking to intervene.
On Wednesday, they moved an intervention application in the case. The Mumbai bench of the National Company Law Tribunal (NCLT) said it would consider the plea along with a bunch of other applications on Thursday.
Goldman Sachs Group Inc analysts now expect the US Federal Reserve to cut interest rates in July and in September, according to a research note issued after Fed Chairman Jerome Powell on Wednesday signalled a rate cut as early as next month. This marks a reversal for Goldman, whose economists said as recently as June 16 that the hurdle for rate cuts is "higher than widely believed." Goldman is one of the 24 primary dealers that does business directly with the Fed.
Glenmark Pharma gets tentative nod from USFDA for acne treatment drug
Shares of Apollo HospitalsNSE 0.98 % Enterprise jumped nearly 4 per cent after HDFC agreed to acquire its entire 50.8 per cent stake in Apollo Munich Health Insurance.
Mortgage major HDFC Wednesday agreed to acquire Apollo Hospitals Group's entire 50.8 per cent stake in Apollo Munich Health Insurance for Rs 1,336 crore and also the 0.4 per cent stake held by a few employees for Rs 10.84 crore.
The deal, valued at Rs 1,347 crore, and subject to regulatory and shareholder approvals, is likely to be closed over the next nine months.
Blue Star shares climb 2% after bagging MMRC contract
Shares of Blue Star climbed 2 per cent and looked on course to extend their gains into the second consecutive session after the company bagged a contract worth Rs 253 crore from the Mumbai Metro Rail Corporation (MMRC).
Blue Star Wednesday said it has bagged a contract from MMRC for the tunnel ventilation system and environmental control system works for the section BKC to Mumbai Central on its Colaba-Bandra-SEEPZ, metro-3 corridor.
A week ago, media reports suggested that the airconditioner-maker, which forayed into the water purifier business in 2016, has set a target revenue of Rs 120 crore from it during this financial year.
Jain Irrigation, YES Bank, Reliance Capital among most active stocks on NSE
In line with expectation, the Federal Reserve maintained a status quo approach but signaled a possible rate cut in the near future. The bulk of Fed policymakers slashed their rate outlook for the rest of the year by roughly half a percentage point, and Fed Chairman Jerome Powell said others agree the case for lower rates is building. The greenback was weighed down against its major crosses after the release of a ‘Dovish’ statement. Today, USDINR pair is expected to quote in the range of 69.20 and 69.90
Sensex drops 40 pts, Nifty tests 11,650; Rupee trades at 69.49 against dollar.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 27.50 points, or 0.23 per cent, higher at 11,746, indicating a positive start for Dalal Street.
Volatility likely on weekly options expiry
The expiry of weekly options might infuse some volatility into the trade on Thursday. The options data show an unclear picture as highest Put open interest was at the 11,700 strike while Nifty ended on Wednesday a few points below it, said Milan Vaishnav of Gemstone Equity Research & Advisory Services.
Tech view: Traders should avoid shorts
On Wednesday, the index formed a higher top but lower bottom on the daily chart. “Sustaining above the 50-DMA on a closing basis indicates that there could be pullback attempts going forward, which will be confirmed on a close above 11,800 level,” said Mazhar Mohmmad of Chartviewindia.in. Traders are advised to avoid shorting the index, he said.
Asian shares rise on Fed signals
A gauge of global stock markets edged near this year's peak while benchmark US Treasury yields and the dollar dropped after the Federal Reserve signalled possible interest rate cuts later this year. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent while Japan's Nikkei gained 0.5 per cent.
US stocks ended higher
In overnight trade, the Dow Jones Industrial Average advanced 38.46 points, or 0.15 per cent, to 26,504.00. The S&P500 index gained 8.71 points, or 0.30 per cent, to 2,926.46. The Nasdaq Composite index rose 33.44 points, or 0.42 per cent, to 7,987.32.
Fed signals rate cuts
Even as the US central bank left its benchmark interest rate, it signalled interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation, Reuters reported.
Oil prices rise, Opec meet on July 1
Brent crude futures rose 82 cents, or 1.3 per cent, to $62.64 as official data showed US crude stocks fell more than expected and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts. Members of the OPEC agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.
Sebi moves SC over jurisdiction issues with NCLT
The Sebi has approached the SC after the capital-markets regulator and the NCLT passed separate orders under the Sebi Act and the IBC, respectively, on Collective Investment Schemes (CIS). Lawyers said any adverse verdict for Sebi in the matter would set a precedent and dozens of CIS cases where Sebi is undertaking recovery proceedings could be affected.
DIIs sell Rs 105 cr worth equities
Foreign portfolio investors (FPIs) sold Rs 97 crore worth of domestic stocks on Wednesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 105 crore, data suggests.
Sensex on Wednesday
Sensex surged as much as 389 points in morning trade, but pared most gains to end only 66 points, or 0.17 per cent, higher. NSE Nifty closed flat and a tad below the 11,700 mark at 11,691.
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