MARKETS LIVE: Indices trade lower as Fed raises rate, signals more hike

Market Check   S&P BSE Sensex 35,598.70 -0.39%   Nifty 50 10,815.45 -0.38%   S&P BSE 200 4,685.91 -0.30%   Nifty 500 9,358.85 -0.29%   S&P BSE Mid-Cap 16,057.18 -0.13%   S&P BSE Small-Cap 17,028.75 -0.00% Govt's move to push FDI via stock exchanges fails to yield results The central government’s move to allow higher foreign direct investment (FDI) in Indian stock exchanges has failed to take off. In 2016, it notified rules allowing a foreign entity to hold up to 15 per cent in an exchange. Earlier, this was capped at 10 per cent.   However, none has come to avail the extra legroom. Industry players say this is because it still allows only portfolio investment and does not provide any extra privilege such as control. READ MORE Balanced funds shrink by 72% in five months to Rs 27 bn from Rs 100 bn   Balanced schemes which dabble both in stocks and debentures are losing favour with investors. Inflows into these hybrid schemes stood at Rs 27 billion in May, down 72 per cent from the peak of Rs 100 billion seen in December 2017. The May inflow tally isn’t one off. READ MORE   Stocks in news Cabinet approves raising of additional share capital of HDFC Bank up to a maximum of Rs 24,000 crore. ICICI Bank to sell up to 2.87 crore shares or 2% equity in ICICI Prudential Life Insurance through stock exchange mechanism. Lupin launches generic Tobramycin Inhalation Solution USP in the U.S. Cipla received final U.S. FDA approval for generic Isuprel injection. The Board of Directors of Oberoi Realty has approved an issue of shares under QIP programme. The issue was opened on 13.06.2018 and the floor price for the same has been Rs. 509.29 per share. The board will meet on 19.06.2018 for finalizing the issue price. Kansai Nerolac starts commercial production at Gujarat unit. Hindustan National Glass to sell 11.23% stake in HNG Float Glass joint venture for $19.3 million. Infosys partners Rhode Island School to train 1,000 designers in 2 yrs. HCL seeks govt approval for IT SEZ in Andhra Pradesh; to invest over $4 bn. Tata Power: It has signed a power purchase agreement with GE for 5 MW solar projects. Adani Transmission: The firm has received a letter of intent of one Intra State Transmission Project in Uttar Pradesh. Container Corp and Bangalore Airport Terminal Services signed MOU to work together for providing Ground Handling and various other airport related services on PAN India basis. (Source: Nirmal Bang report) Motilal Oswal on TCS With multiple mega deals in the bag, TCS is set to continue on its path of gradual acceleration in growth witnessed over the past two quarters, and potential hitting double-digits in constant currency toward the latter half of the year. Currency movements will also play a key role in helping pull margins back to the aspired range of 26-28%. At 22.3x FY19E and 21.1x FY20E earnings, we remain Neutral on valuations MARKET COMMENT Amar Ambani, head of research, IIFL The Fed has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year. The Fed committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee's symmetric 2 percent objective over the medium term. US indices closed lower and sentiment in most markets remain subdued. A quiet start is in store after the Indian indices closed flat following a swinging day. Stocks like TCS will be in focus ahead of the buyback announcement on Friday. HDFC Bank got a nod to raise additional capital of Rs 24,000 crore by selling stake to foreign investors