Last Updated : Jun 14, 2018 05:13 PM IST | Source:

Podcast | An evening walk down Dalal Street: Sensex slips more than 100 points post US Fed outcome

Sectorally, the S&P BSE Healthcare index rose 1.4 percent, followed by the S&P BSE Auto index which rose 0.05 percent.

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The S&P BSE Sensex slipped over 100 points weighed down by weal global cues after the US Federal Reserve on expected lines raised rates by 25 bps but hinted at 2 rate hikes in 2018 which led to some nervousness on equity markets across the globe.

" The Federal Reserve voted to raise its benchmark federal-funds rate by a quarter percentage point to a range of 1.75% to 2% and also projected a slightly faster pace of rate increases in the coming months, with two additional hikes expected by the end of this year, compared to one previously," Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.

"Investors took this as a more aggressive stance than previously projected and consequently took to selling equities. Key benchmark indices in India finally closed the day with losses of over 0.25%. Barring the healthcare index, which gained close to 2% in trade today, all other sectoral indices traded the day in the negative zone," he said.

Sectorally, the S&P BSE Healthcare index rose 1.4 percent, followed by the S&P BSE Auto index which rose 0.05 percent.

On the losing front, the S&P BSE IT index lost 1.4 percent, followed by the S&P BSE PSU index which was down 1.3 percent, and the S&P BSE Consumer Durable index which slipped 0.89 percent.

The S&P BSE Smallcap index rose 0.07 percent while the S&P BSE Midcap index which slipped 0.08 percent.

Top Sensex gainers which include names like Sun Pharma, Yes Bank, IndusInd Bank, Dr. Reddy’s Laboratories, and Kotak Mahindra Bank.

Top Sensex losers which include names like Infosys, ICICI Bank, Adani Ports, TCS, SBI, and Axis Bank.

Stocks in news:

Infosys: Infosys which is now 25 years old on stock exchanges and has been one of the biggest wealth creators on Dalal Street. The share price fell more than 2 percent intraday after the stock adjusted for the dividend. It closed 2.9 percent lower.

The country's second-largest software services provider, on April 13, had recommended a final dividend of Rs 20.50 per equity share for the financial year ended March 31, 2018, and a special dividend of Rs 10 per share.

Shares of Tata Consultancy Services (TCS) shed 1.75 percent as foreign broking house Macquarie has maintained a neutral rating on the stock with a target of Rs 1,600 per share.

Dish TV: Dish TV India share price rose 1.5 percent after ace investor Rakesh Jhunjhunwala bought shareholding worth Rs 93 crore. He picked up a 0.7 percent stake, or 1.3 crore shares, in the digital-to-home provider.

Mindtree share price lost 3.5 percent intraday after global research firm Citi downgraded the stock to sell from neutral. Its business has seen a good turnaround that has already been priced into the strong returns seen in past six months, the brokerage house said. "Valuations are sector-leading and don't leave any room for disappointment."

Shares of HCL Technologies added 1.2 percent as the company signed an end-to-end IT infrastructure services deal with Falck.

Global brokerage firm CLSA has initiated coverage with a Buy rating on ICICI Securities and set a target price at Rs 520, implying a potential upside of 46 percent. The stock price gained 1.2 percent.

Punj Lloyd share price fell 11 percent after ICICI Bank dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under Insolvency & Bankruptcy Code (IBC).

In other news/Global Update:

The European Central Bank will debate today whether to end its huge asset purchases by year-end, in what would be its biggest step towards dismantling crisis-era stimulus credited with pulling the eurozone economy out of recession.

WPI inflation for the month of May increased to 14-month high of 4.43 percent from 3.18 percent in previous month. Manufactured products inflation also inched up at 3.73 percent, from 3.11 percent in April.

European stocks traded lower as traders await ECB policy rate decision due later in the day while Asian markets ended in the red after US Federal Reserve indicated more rate hikes going ahead. Japan's Nikkei and Hong Kong's Hang Seng were down 1 percent each while South Korea's Kospi slipped 1.8 percent.
First Published on Jun 14, 2018 05:13 pm
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