Indian benchmark indices opened marginally higher on Wednesday as the most anticipated US Fed policy decision on interest rate is due today and the domestic WPI figures which are supposed to be announced later today afternoon. BSE Sensex opened up 44.2 points or 0.14% at 31,147.69 points while NSE Nifty up 14.65 points or 0.15% at 9,621.55 points.
The key macro data release lined up for the week includes (Wholesale Price Index)WPI– food, fuel, manufacturing, inflation to be announced later today followed by the balance of trade data for the month of May.
Meanwhile, Asian shares turned mixed on Wednesday as investors everywhere awaited clarity on the Federal Reserve’s future path for US policy after a likely rate rise later in the day. Economic data out of China showed retail sales and industrial output topped forecasts in May, but a miss in urban investment reinforced views the world’s second-largest economy will soon start to lose some momentum as lending costs rise and the property market cools.
Here are the live updates:
03:30 pm: Domestic markets close marginally higher helped by the rally in PSU bank and realty stocks after diving to June’s low. The benchmark Sensex ends up 52.42 points or 0.17% at 31,155.91 points while the broader Nifty 50 close up 11.25 points or 0.12% at 9,618.15 points. The shares of heavyweight Reliance Industries (up 3.47%) end in the lead on NSE. Amid the sectoral indices of NSE, Nifty Realty (up 1.36%), Nifty PSU Bank (up 0.92%) and Nifty Media (up 0.54%) rise the most.
03:15 pm: Gold prices declined by Rs 70 to Rs 29,250 per 10 grams at the bullion market today owing to slack demand from local jewellers even as the yellow metal strengthened overseas. Silver continued to remain weak and eased further by Rs 50 to Rs 39,100 per kg due to reduced offtake by industrial units and coin makers. Traders said that a fall in demand from local jewellers and retailers at domestic spot market mainly led to the decline in gold prices, but better trend overseas capped the fall. Globally, gold rose by 0.07 per cent to USD 1,267.00 an ounce in Singapore. In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 70 each at Rs 29,250 and Rs 29,100 per 10 grams, respectively.
03:00 pm: A proposal to introduce a Bill in Parliament for setting up a Resolution Corporation to deal with bankruptcy in banks, insurance companies and financial entities received Cabinet go-ahead today. The Financial Resolution and Deposit Insurance Bill, 2017, which aims to instil discipline in financial service providers in the event of a financial crisis by limiting the use of public money to bail out distressed entities, was approved by the Union Cabinet chaired by Prime Minister Narendra Modi today, an official statement said. The proposed Bill will provide for a comprehensive resolution framework to handle any bankruptcy situation in banks, insurers and financial sector entities.
02:45 pm: Dr Reddy’s Laboratories has said that the US Food and Drug Administration, which inspected active pharmaceutical ingredients (API) unit at Miryalaguda in Telangana in March this year, has given an ‘establishment inspection report’. After the news broke out, DRL stock was trading at Rs 2,679.70, up nearly 2%, at 2 pm today. On February 21, the company informed that the FDA had issued form 483 with three observations.
02:30 pm: With petrol and diesel prices set to change on a daily basis across the entire country from 16 June, oil companies have made provisions for consumers to check the revised rate of fuels through various methods, such as LED screens at petrol pumps, toll-free number, social media posts, price revision alert on app as well as SMS facility. The state-run oil marketing company Indian Oil Corporation Ltd., (IOC) said that for the convenience of customers, every petrol pump will now have its dealer’s code prominently displayed, to allow consumers to verify prices through SMS. IOC added that consumers would be able to see updated prices of petrol and diesel in all cities through the company’s mobile app — Fuel@IOC — once the daily price revision kicks in from Friday. Click here to know how to check rates.
02:05 pm: Domestic equities rebound, inches up marginally after weak WPI inflation figures with BSE Sensex up 72.82 points or 0.23% at 31,176.31 while the broader Nifty 50 trade firm above 9,600, up 8.8 points or 0.09% at 9,615.7 points. The sectoral indices of NSE, Nifty PSU Bank and Nifty Realty jumps 1% each at 3,480.7 and 263.55 respectively, while Nifty FMCG slips 0.81% at 25,731.05 points.
01:45 pm: Indian stock markets stay subdued ahead of an expected increase in the key policy rate by the United States Federal Reserve later today, tracking most Asian peers which were trading mixed, wary of the future course of action that the Fed chairperson Janet Yellen would take. The US Fed is widely expected to raise the interest rates by 0.25 percentage points when it announces its June policy decision later today (6.00 pm GMT), but attention is on Janet Yellen’s commentary on the future outlook for monetary policy and the central bank’s policy on lightening its balance sheet.
01:30 pm: India’s wholesale inflation slipped below 3% during May as compared to 3.85% in April, raising hopes of a rate cut by RBI in its next Monetary Policy Review Meeting. The Wholesale Price Index (WPI) or wholesale inflation for the month of May stood at 2.17%, down 1.68% from 3.85% in April. In May, the all commodities index fell 0.4% in comparison to April. “Going ahead, there could be a moderation in inflation in coming months with expectations of normal monsoons. Upside risk to inflation could emerge from movement in the global oil prices. We are expecting the WPI inflation to remain in the range of 3-4% for next couple of months,” Care Ratings said.
01:05 pm: Wind energy solutions provider Inox Wind today said rating agency Crisil has reaffirmed the ‘AA-‘ rating for its long-term bank facilities. The rating agency has also reaffirmed ‘A1+’ rating for the company’s short-term bank loan facilities, it said in a BSE filing. “AA rating for long-term instruments is the second highest rating accorded by Crisil for long-term facilities and reflects high degree of safety regarding timely servicing of financial obligations and very low credit risk,” Inox Wind said. Inox Wind is one of the select few companies in India to be given the AA or higher rating.
12:45 pm: Domestic markets recover the mid-morning losses as WPI inflation in May slips to a 5-month low of 2.17%. BSE Sensex gain over 70 points from the day’s low of 31,054.94 points to trade at 31,133.62 points while NSE Nifty 50 steps above 9,600, up 27 points from day’s low of 9580.45 points to 9,607.95 points. Inflation based on the wholesale price index fell to a five-month low of 2.17%.
12:30 pm: Indian shares edged lower on Wednesday tracking tepid Asian markets ahead of the outcome of the US Federal Reserve meeting, while index heavyweight Reliance Industries gained after its telecom unit reported strong April subscriber additions. State-run lenders swung between gains and losses amid worries they would have to raise provisioning levels after the Reserve Bank of India on Tuesday identified 12 of the largest loan defaulters and said it will direct lenders to begin insolvency proceedings around them.
12:10 pm: India’s WPI (Wholesale Price Index) is announced, WPI inflation falls to 2.17% from the previous month’s 3.85%, WPI Food slips to 0.15% from 0.6%, WPI fuel drops to 11.69% from 18.5% of last month while WPI Manufacturing witness a slight correction, edges down to 2.55% from 2.66% to that of last month. Domestic markets continue to trade in red with the benchmark Sensex down 20 points at 31,083.1 points while the 50-share barometer trade 15 points lower at 9,592.05 points.
12:05 pm: The Reserve Bank of India (RBI) said on Tuesday it has identified 12 of the largest loan defaulters, who owe over Rs 5,000 crore each and 60 percent or more of the loan had been already classified as non-performing by banks as of 31 March 2016 and has asked banks to start bankruptcy proceedings against them. Experts have hailed this action by RBI as it is expected to bring about financial discipline and pave way for better asset quality in PSU banks. Here’s what the experts said about this move.
11:33 am: The prevailing caution over WPI data and US Fed policy set the domestic stock market for the worst day of June. BSE Sensex trips over 40 points to trade at 31,056.51 points while NSE Nifty slips to the month’s low at 9,580.45 points. However, shares of Reliance Industries and Dr Reddy’s lead the Sensex with gains up to 3%.
11:10 am: Drug firm Glenmark has received a tentative nod from the US health regulator for Saxagliptin tablets. “Glenmark Pharmaceuticals Inc, USA (Glenmark) has been granted tentative approval by the United States Food & Drug Administration for Saxagliptin tablets, 2.5 mg and 5 mg, the generic version of Onglyza tablets, 2.5 mg and 5 mg of AstraZeneca AB,” the company said in a BSE filing today. According to IMS Health sales data for the 12-month period ending April 2017, the Onglyza tablets, 2.5 mg and 5 mg market achieved annual sales of approximately USD 518.5 million.
10:50 am: Tracking a firming trend overseas, gold prices rose by Rs 49 to Rs 28,993 per 10 grams in futures trade today as speculators built up fresh positions. Silver prices moved up by 0.54 per cent to Rs 39,600 per kg in futures trade today as traders built up fresh positions, driven by a firm trend overseas. Globally, gold rose 0.23 per cent to USD 1,269 an ounce in Singapore.
10:30 am: Tejas Networks Ltd’s IPO, which opens for subscription today, has received positive analyst recommendations. The IPO, priced in the range of Rs 250–257 per share, will help the Bangalore-based company raise a total of Rs 776.68 crore at the upper end of the price band. Retail investors will be offered only 10% stake in the IPO which aims to augment the company’s working capital by raising up to Rs 450 crore through a fresh issue of equity shares, while the existing stakeholders would get the rest via an offer for sale.
10:10 am: The Reserve Bank of India (RBI) on Tuesday said it had identified 12 of the largest non-performing accounts or assets (NPAs), totalling 25 percent of India’s gross NPAs, which can be immediately taken up under the Insolvency and Bankruptcy Code (IBC). Some of the large stressed accounts that could be a part of the 12 are Essar Steel with Rs 44,000 crore stressed assets, Bhushan Power (Rs 35,000 crore), Bhushan Steel (Rs 35,000 crore), Alok Industries (Rs 24,000 crore) and Electrosteel Steels (Rs 10,000 crore), according to a CNBC-TV18 report.
09:57 am: The rupee firmed up 2 paise to 64.31 against the dollar in early trade today even as traders expect an increase on interest rate by the US Fed at its policy meeting today. Domestic stocks opened higher, which kept the mood positive.
09:42 am: Six out of eleven sectoral indices of NSE trade in red with Nifty Metal (down 0.82%), Nifty FMCG (down 0.55%), Nifty IT (down 0.19%) while the banking sector indices trade marginally along with auto and realty.
09:20 am: The shares of Dr Reddy’s (up 1.52%), Lupin (up 0.98%), Reliance Industries (up 0.8%), ICICI Bank (up 0.76%), Power Grid (up 0.74%) lead the gain on BSE Sensex. Among the sectoral indices pharma, realty and PSU bank jumps in the opening trade with gains up to 0.36%.
With input from Reuters and Press Trust of India.