MARKETS LIVE: Sensex down 100 pts as Fed raises rate, signals more hike

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SI Reporter | New Delhi Last Updated at June 14, 2018 15:15 IST

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Future Supply Chain, Hindustan Aeronautics hit lowest level since listing Shares of Future Supply Chain Solutions (FSC) and Hindustan Aeronautics (HAL) have hit their respective lowest values since their listing on the bourses. FSC, a Future Group Company, has dipped 7% to Rs 620 on the BSE. The stock made its debut on December 18, 2017, trading 7% lower against its initial public offer price of Rs 664 per share. READ MORE Euro zone bond markets brace for ECB shift, stimulus scheme nears end European government bond yields in the euro area edged up on Thursday as the European Central Bank prepared to debate whether to end its unprecedented stimulus scheme this year. On Wednesday the US Federal Reserve raised interest rates as expected, and signalled two more hikes this year, citing higher inflation. READ MORE Gold futures up by 0.31% to Rs 31,239 on global cues Gold prices went up by 0.31 per cent to Rs 31,239 per 10 grams in futures trade today as speculators built up fresh positions, taking positive cues from overseas markets. At the Multi Commodity Exchange, gold for delivery in August month rose by Rs 96, or 0.31 per cent to Rs 31,239 per 10 grams in business turnover of 511 lots. READ MORE Reliance Industries hits new high, gains 10% in 3 weeks Reliance Industries (RIL) hit a new high of Rs 1,011.70 up 1% on the BSE in noon deal, surpassing its previous high of Rs 1010.70 recorded on April 27, 2018 in intra-day trade. In past three weeks, RIL has outperformed the market by surging 10% as compared to 4% rise in the S&P BSE Sensex. READ MORE Reliance Industries After 2 yrs of muted sales, United Spirits eyes double-digit growth in FY19 The United Spirits stock has shed 15 per cent from its highs earlier this year, mainly owing to regulatory uncertainty weighing on the sentiment of the liquor sector. Demonetisation, and the ban on sale of liquor near state and national highways, besides issues related to the implementation of the goods and services tax, were among the headwinds. The company reported a sales growth of just 3.8 per cent in FY17 and a fall of 4.5 per cent in FY18. READ MORE Alembic Pharma up 8% as USFDA approves Doxycycline Hyclate capsules Alembic Pharmaceuticals has moved higher by 8% to Rs 530, bouncing back 11% from early morning low on the BSE after the company announced that it has received US drug regulator’s approval Doxycycline Hyclate capsules USP, 50 mg and 100 mg. The stock hit an intra-day low of Rs 478 in early morning trade. “The company has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxycycline Hyclate Capsules USP, 50 mg and 100 mg,” Alembic Pharma said in a press release. READ MORE

Benchmark indices are trading lower after US Federal Reserve raised interest rates and took a more hawkish tone in forecasting a slightly faster pace of tightening for the rest of the year, while concerns about US-China trade frictions also might keep investors on edge.

Investors, however, latched on to a change in Fed policymakers’ rates projections, which pointed to two additional hikes by the end of this year compared to one previously, based on board members’ median forecast.

The Fed has raised rates seven times since late 2015 on the back of the economy's continuing expansion and solid job growth, rendering the language of its previous policy statements outdated.

Back home, the Wholesale inflation spiked to 4.43 per cent in May, from 3.18 per cent in April, according to the government data released on Thursday.

Meanwhile, India's current account deficit (CAD) rose to $13 billion (Rs 878 billion and 1.9 per cent of gross domestic product, or GDP) in the fourth and final quarter (Q4 of 2017-18), compared to $2.6 billion (Rs 176 billion and 0.4 per cent of GDP) in the same period of 2016 -17.

For the full financial year (2017-18), the deficit increased to 1.9 per cent of GDP, from 0.6 per cent in 2016-17.

GLOBAL MARKETS

Globally, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.25 per cent in early trade. South Korea's KOSPI was off 0.9 per cent, while Australia's market slipped 0.2 per cent.

Japan's Nikkei shed 0.7 per cent.

(With inputs from Reuters)

First Published: Thu, June 14 2018. 14:45 IST