Thursday, December 14, 2017

Pre-Session: Market set to surge in early trade
14-Dec-17: Market may surge in early trade on positive global cues after the US Federal Reserve raised interest rates for the third time this year. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could surge 51 points at the opening bell.

Overseas, Asian stocks edged higher after Federal Reserve raised rates for the third time this year. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.

The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.

A meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of €30 billion from January with the option of extending it in September 2018.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 578.65 crore yesterday, 13 December 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 116.48 crore yesterday, 13 December 2017, as per provisional data.

Among corporate news, Rural Electrification Corporation (REC) said it has launched an issue of $400 million, 3.068% notes due 2020, priced on 11 December 2017. The notes will mature on 2020 and all principal and interest payments will be made in US dollars. The settlement date for the notes is expected to be 18 December 2017. The announcement was made after market hours yesterday, 13 December 2017.

The net proceeds from the sale of the notes will be applied for refinancing the outstanding external commercial borrowings of the company within the ambit of the ECB Guidelines and such other guidelines specified by the Reserve Bank of India (RBI).

On the macro front, the government will announce inflation data based on wholesale price index (WPI) for November at 12:00 IST today, 14 December 2017. Wholesale prices rose 3.59% year-on-year in October, following a 2.6% increase in September.

Among other news, the second phase of polling in Gujarat will take place today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.

The stock market registered modest losses in a highly volatile session of trade yesterday, 13 December 2017. The Sensex had fallen 174.95 points or 0.53% to settle at 33,053.04, its lowest closing level since 7 December 2017.

Today's Calls:
#Intraday Buy Titan Ltd at around Rs.823-825, SL: Rs.815, T: Rs.841.
#Intraday Sell Punjab National Bank Ltd at around Rs.168.50-169, SL: Rs.172, T: Rs.164. The stock of PNB is now at Rs.168.35. But Ignore this recommendation. Call Closed. 
#Intraday Sell Tata Motors DVR at around Rs.222, SL:  Rs.226.5, T: Rs.217. Exit near the cost price. Call Closed.
#Intraday Sell Silver around Rs.37500, SL above Rs.37750, T: Rs.37100.

~~ with inputs from Capital Market - Live News....

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