ETMarkets Morning Podcast: How D-St will react to Fed's less-hawkish tone
Hi there! Good Morning. This is Nandini Sanyal from ETMarkets.com with our regular morning Podcast of all the news, views, and cues that could sway your market through the day.
First thing first. The US Federal Reserve last night raised its benchmark interest rate for the second time in three months, but signalled that any further hikes this year will be gradual. The Fed Reserve’s key short-term rate will go up by a quarter-point to a still-low range of 0.75 per cent to 1 per cent.
Fed Chair Janet Yellen sought to reassure investors that the central bank’s latest interest-rate increase wasn’t a paradigm shift to a trigger-happy policy driven by fears of faster inflation. She said the central bank was willing to tolerate inflation temporarily overshooting its 2 per cent goal and that it intended to keep its policy accommodative for “some time.”
Asian markets did not show any negative knee-jerk reaction to the Fed move this morning. On Dalal Street too, analysts are not expecting any big disruption.
At 6.18 am, Nifty50 futures on the Singapore Stock Exchange were trading 64.50 points higher at 9,174, indicating a gap-up opening for the domestic market.
In the tech charts, the Nifty50 formed a Doji on Wednesday. Analysts said the market was likely to continued with the positive trend in the immediate future as long as the index holds above the 9,000 mark.
The other piece of good news is that India’s merchandise exports registered double-digit growth in February for the first time since the Modi government took office, on the back of a 47 per cent rise in engineering goods shipments. Exports grew 17.48 per cent in February to $24.5 billion, but a 21 per cent rise in imports widened trade deficit to $8.8 billion. Of course, a low base effect helped, but still the numbers showed signs of growth.
In stock-specific news, HCL Technologies on Wednesday told the bourses that its board would consider a share buyback at a meeting on March 20.
State Bank of India chairperson has spoke out against a farm loan waiver amid talk that the BJP government may soon deliver on its poll promise made during the Uttar Pradesh election.
And on the RIL counter, some Rs 50,000 crore worth of shares changed hands on Wednesday as part of a move to restructure their holdings of the energy-to-telecom conglomerate.
Elsewhere, crude oil prices climbed for the first time in more than a week on Wednesday on a surprise drawdown in US crude inventories and data from the International Energy Agency (IEA) suggesting OPEC cuts could create a crude deficit in the first half of 2017. Brent futures gained 89 cents, or 1.8 percent to settle at $51.81 a barrel, their first increase in seven days, the report said.
Lastly, a quick look at some of the interesting headlines from the print edition of ETMarket.
As the rupee raced to a fresh 16-month high on Wednesday, RBI intensified efforts to rein in the surging currency, making informal inquiries with big banks on Wednesday about open positions to send a clear signal that it's reaching the end of its tolerance limit for speculative activity.
Amid reports that the Tata group was planning to revamp its shareholding, some analysts said a reduction in cross holdings within the Tata Group will result in unlocking of value for listed entities such as Tata Power, Tata Chemicals, Tata Global and Tata Motors, which will benefit from such a move, leading to lower debt and interest expenses.
Liquor stocks rallied on Wednesday after Karnataka abolished a key liquor tax in the state Budget, but analysts said it may not be time to party yet as further clarity on state-wise taxes on alcohol products is awaited under the Goods and Services Tax (GST).
We would leave you with that much for now.
Do log on to www.etmarkets.com through the day for continuous updates on every development in the financial markets.
Have a good trading day ahead!
First thing first. The US Federal Reserve last night raised its benchmark interest rate for the second time in three months, but signalled that any further hikes this year will be gradual. The Fed Reserve’s key short-term rate will go up by a quarter-point to a still-low range of 0.75 per cent to 1 per cent.
Fed Chair Janet Yellen sought to reassure investors that the central bank’s latest interest-rate increase wasn’t a paradigm shift to a trigger-happy policy driven by fears of faster inflation. She said the central bank was willing to tolerate inflation temporarily overshooting its 2 per cent goal and that it intended to keep its policy accommodative for “some time.”
Asian markets did not show any negative knee-jerk reaction to the Fed move this morning. On Dalal Street too, analysts are not expecting any big disruption.
At 6.18 am, Nifty50 futures on the Singapore Stock Exchange were trading 64.50 points higher at 9,174, indicating a gap-up opening for the domestic market.
In the tech charts, the Nifty50 formed a Doji on Wednesday. Analysts said the market was likely to continued with the positive trend in the immediate future as long as the index holds above the 9,000 mark.
The other piece of good news is that India’s merchandise exports registered double-digit growth in February for the first time since the Modi government took office, on the back of a 47 per cent rise in engineering goods shipments. Exports grew 17.48 per cent in February to $24.5 billion, but a 21 per cent rise in imports widened trade deficit to $8.8 billion. Of course, a low base effect helped, but still the numbers showed signs of growth.
In stock-specific news, HCL Technologies on Wednesday told the bourses that its board would consider a share buyback at a meeting on March 20.
State Bank of India chairperson has spoke out against a farm loan waiver amid talk that the BJP government may soon deliver on its poll promise made during the Uttar Pradesh election.
And on the RIL counter, some Rs 50,000 crore worth of shares changed hands on Wednesday as part of a move to restructure their holdings of the energy-to-telecom conglomerate.
Elsewhere, crude oil prices climbed for the first time in more than a week on Wednesday on a surprise drawdown in US crude inventories and data from the International Energy Agency (IEA) suggesting OPEC cuts could create a crude deficit in the first half of 2017. Brent futures gained 89 cents, or 1.8 percent to settle at $51.81 a barrel, their first increase in seven days, the report said.
Lastly, a quick look at some of the interesting headlines from the print edition of ETMarket.
As the rupee raced to a fresh 16-month high on Wednesday, RBI intensified efforts to rein in the surging currency, making informal inquiries with big banks on Wednesday about open positions to send a clear signal that it's reaching the end of its tolerance limit for speculative activity.
Amid reports that the Tata group was planning to revamp its shareholding, some analysts said a reduction in cross holdings within the Tata Group will result in unlocking of value for listed entities such as Tata Power, Tata Chemicals, Tata Global and Tata Motors, which will benefit from such a move, leading to lower debt and interest expenses.
Liquor stocks rallied on Wednesday after Karnataka abolished a key liquor tax in the state Budget, but analysts said it may not be time to party yet as further clarity on state-wise taxes on alcohol products is awaited under the Goods and Services Tax (GST).
We would leave you with that much for now.
Do log on to www.etmarkets.com through the day for continuous updates on every development in the financial markets.
Have a good trading day ahead!
