The US Federal Reserve cut interest rates by a quarter of a percentage point for the second time this year on Wednesday in a widely expected move meant to sustain a decade-long economic expansion, but gave mixed signals about what may happen next.
The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range, a step taken to smooth out problems in money markets that prompted a market intervention by the New York Fed this week.
US stocks extended losses on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point in a widely expected move, but gave mixed signals about what may happen next.
With continued economic growth and strong hiring "the most likely outcomes," the Fed nevertheless cited "uncertainties" about the outlook and pledged to "act as appropriate" to sustain the expansion.
Expectations of lower rates have supported Wall Street's rally this year, with the benchmark S&P 500 now about 1% below its record high close in July.
ETMarkets Evening Podcast: Which strategy to follow on Dalal Street
Nifty could retrace back to 10,910 level in the next few days
Nifty formed an Inside Bar on daily scale as it traded inside the trading range of last session. Price formation suggests a bearishness but support are intact which is keeping the index in broader trading range. Now it needs to hold above 10,800 to witness a bounce towards 10,930-10,950 zones while on the downside supports are seen at 10,750-10,700 levels
Nifty has been finding support at lower zones after the decline of the last two sessions while finding hurdle at bounce. Price formation suggests a bearishness, but supports are intact, which is keeping the index in broader trading range. Now the index needs to hold above 10,800 to witness a bounce towards 10,929 and then 10,950, while on the downside, supports are seen at 10,750 and then 10,700
Market was rangebound with a positive bias backed by stability in oil prices with signs of faster restoration in Saudi production. Further rupee gained and 10-year yield declined that added some respite to the sentiment. Auto pact was rangebound as the sector is unlikely to get any interim relief by way of GST cut due to concern of further shortfall in tax collection and challenges to meet fiscal target
- Vinod Nair, Head of Research, Geojit Financial Services
If Nifty breaks below 10,820, it would witness selling, which would take the index towards 10,780-10,720. Nifty is trading below 20, 50, 100 and 200-day SMA's, which are important short term moving averages, indicating negative bias in the short to medium term. Nifty continues to remain in short term sideways trend hence buying around major support zone and profit booking around resistance zone is advisable. The daily strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias
- Rajesh Palviya, Axis Securities
Nifty recovered after heavy selling witnessed in earlier session. It was heartening to see broader markets come back so quickly. Market is witnessing value buying, especially in mid and smallcaps. Nifty overall has been in a broader 10,650-11,150 range and either side breakout would give sizeable trading opportunity. Till 10,650 zone is not breached on the downside decisively we remain contra bullish on the Nifty
- Manav Chopra, CMT, Head Research - Equity, Indiabulls Ventures
The correction in crude oil prices has definitely provided respite to investors. Nonetheless, geopolitical developments would still be one of the key factors on investors’ radar as any further escalation would have an adverse impact on markets and the economy. Apart from this, the FOMC meet outcome tonight would be a key factor as there is a wide expectation of a rate cut. However, commentary on growth and rate outlook would be a crucial. On the domestic front, the recommendations of GST Fitment committee to not reduce rates in certain sectors has impacted sentiments, however the final decision would be taken at the GST Council meet on September 20
Sensex gains 83 pts ahead of Fed policy outcome; Nifty ends at 10,849
Sensex gains 83 pts ahead of Fed policy outcome; Nifty ends at 10,849; cigarette stocks rally up to 5%
Cigarette stocks rally as government bans e-cigarettes
Price as on 18 Sep, 2019 03:09 PM, Click on company names for their live prices.
Credit profile of IT cos to remain stable: ICRA
The profitability of IT services companies declined during the first quarter of the current financial year, on account of higher employee expenses especially onsite led by fresh hiring, sub-contracting cost and cross-currency movements, rating agency ICRA said.
Animal spirits need to be revived; eliminate DDT, buyback tax: Nilesh Shah, MD & CEO, Envision Capital
FPI outflows worst in two decades
Foreign institutional investors (FIIs) have sold stocks worth $4.73 billion during July-September so far, their biggest quarterly sell-off at least since 1999. Despite the selloff in last three months, net foreign institutional investment for the year so far is still positive at $6.54 billion.
We're sitting on 30% cash, buying systemically
- Vikas Khemani, Founder, Carnelian Capital Advisors
11 years later, the world’s still living in the Lehman shadow
The shadow of Lehman Brothers continues to loom large on central banks 11 years after the storied Wall Street investment bank foundered, touching off a broader market collapse that sent the world economy into its worst crisis since the Great Depression.
SAT gives 4 weeks to NSE in co-location case
Securities Appellate Tribunal (SAT) on Wednesday asked NSE and its ex-officials, including the former CEO Chitra Ramkrishna, to file their rejoinders within four weeks in their plea against Sebi that penalised them in the co-location case.
European shares drop ahead of Fed policy review
Losses in luxury stocks dragged European shares lower on Wednesday, while investors remained wary of making big bets ahead of a widely expected interest rate cut by the US Federal Reserve. Swiss luxury goods group Richemont fell nearly 5 per cent, weighing the most on the pan-European STOXX 600 index, while Swatch declined 2.4 per cent after a bearish note by UBS.
YES Bank, Idea and Tata Motors among top active stocks
Crude oil futures fall on global cues
Crude oil futures fell 0.52 per cent to Rs 4,223 per barrel on Wednesday after participants reduced positions amid weak global cues. On the Multi Commodity Exchange, crude oil for delivery in September shed Rs 22, or 0.52 per cent, to Rs 4,223 per barrel with a business volume of 22,539 lots.
Housing finance sector looks attractive: Nirmal Bang Institutional Equities
The brokerage said that the HFC sector provides attractive long-term investment opportunities since the concerns raised against the NBFC business model do not uniformly apply across NBFCs and within the HFC space. "Besides, collateralised lending with property as collateral is the safest form of lending among varied NBFC segments. The generic housing finance opportunity remains large and ‘failure-remote’ HFCs will garner a significant share of this prospective opportunity," it said.
FMCG slowdown likely to be worst in 15 years: Credit Suisse
The foreign brokerage said that FY20 is likely to be the year of worst revenue growth in 15 years, since 2000-03. The slowdown started in 2016, however, was camouflaged first by trade disruptions in 2017 caused by demonetisation and GST, and then by the low base effect leading to high growth in FY19, it said.
ITC, LIC Housing and PNB Housing hit 52-week lows
HEG, Jubilant Life and MRPL off day's highs
Investors in India always assume earnings growth, but it is not a birthright
- Shankar Sharma
Midcap, Smallcap indices edge higher
The BSE Midcap index (up 0.50 per cent) outpaced the Smallcap (up 0.35 per cent) and Sensex (up 0.39 per cent) in the afternoon trade. Indian Hotels, Alkem Laboratories, Jindal Steel, GMR Infra and Edelweiss Financial Services were up between 2 per cent and 4 per cent in the midcap space.
Union Ministers Prakash Javdekar and Nirmala Sitharaman to brief on cabinet decisions at 3 pm
Union Ministers @PrakashJavdekar and @nsitharaman to brief on Cabinet decisions at 3 pm today https://t.co/AtMqQsYYBc
Very few businesses, of any size or consequences, have a permanent moat: Damani
There is an inverse relationship between PE ratio and subsequent long term performance
- Ramesh Damani
I learnt that a great company is not necessarily a great stock
- Ramesh Damani
Nifty Bank slips 250 points from day's high
Sensex pares opening gains, trades flat
BSE Sensex was trading flat around 10.20 am, paring most of the gains it logged in the opening session. Seventeen of 30 Sensex stocks were trading in the red, led by Maruti Suzuki and YES Bank, which declined over 1 per cent each.
The pressure pushing up prices has eased and after the announcement from the Saudis last night, prices came off. ICE Brent came off more than $4 and WTI futures also came off almost $4. So, the panic or the worry that this outage in Saudi Arabia might take months to clear has obviously subsided.
- Reza Amanat, Argus Media
What and how much is FII selling?
#ETNOWInsight | #FII's continue to sell for the third straight month. How much have they sold in this quarter and w… https://t.co/SSq5pWJCGo
Sensex gains 200 points, Nifty above 10,850; rupee trades at 71.45 against US dollar
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 38.50 points, or 0.36 per cent, higher at 10,880.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms Bearish Belt Hold
Nifty50 saw selling pressure from the word go on Tuesday and tested the 10,800 level in intraday trade, before forming a Bearish Belt Hold candle on the daily chart. A drop below the 10,870-10,950 range made technical analysts turn bearish on the index outlook and they now feel the recent swing low of 10,637 is achievable.
Asian shares flat
Caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 per cent while Japan's Nikkei slid 0.03 per cent.
Oil recedes on Saudi supply reassurance
Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges.
US stocks settle with modest gains
US stocks finished with modest gains on Tuesday amid the Federal Reserve's key monetary policy meeting and a slew of economic data. The Dow Jones Industrial Average index increased 33.98 points, or 0.13 per cent, to 27,110.80. The S&P500 index rose 7.74 points, or 0.26 per cent, to 3,005.70. The Nasdaq Composite Index was up 32.47 points, or 0.40 per cent, to 8,186.02.
US Fed outcome today
The Fed's September monetary policy meeting kicked off on Tuesday and the central bank is expected to announce its latest decision on interest rate on Wednesday at 1800 GMT (IST 11.30 pm) on Wednesday. Markets are betting high on further rate-cut moves.
Startups seek change in listing requirements
A clutch of India’s most richly-valued consumer internet companies will soon petition the country’s market regulator for a revision in rules that govern the listing of startups on Indian stock exchanges, according to industry executives aware of the plans. At present, minimum 20 per cent promoter stake is a must for listing in India.
Ola, Lenskart, PolicyBazaar and Oyo among companies in talks with Sebi.
CLSA upgrades global equities
The valuation froth in Indian equities has settled even as the earnings season has been disappointing and the outlook is weak, said Credit Suisse Wealth Management India in a note.
FIIs sell Rs 808 crore worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 808 crore on Tuesday, data available with NSE
suggested. DIIs were net buyers to the tune of Rs 86 crore, data suggests.