Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 38 points at the opening bell.
Traders and investors are closely awaiting a series of domestic and global events this week. The wholesale price index (WPI) inflation data will be announced today, 14 June 2018.
On the global front, the European Central Bank (ECB) will hold its policy meeting today, 14 June 2018, in which policy makers are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets on Friday, 15 June 2018 with no change to policy expected.
Overseas, Asian stocks followed US equities lower as the Federal Reserve struck a hawkish tone in its latest policy statement. US stock benchmarks ended near session lows yesterday, 13 June 2018 as the Federal Reserve completed its second increase to benchmark interest rates in 2018, as expected, but signaled a slightly more aggressive plan to tighten monetary policy this year than had previously been projected.
The Federal Reserve voted to raise its benchmark federal-funds rate by a quarter percentage point to a range of 1.75% to 2%. Policymakers also projected a slightly faster pace of rate increases in the coming months, with two additional hikes expected by the end of this year, compared to one previously. They see another three rate increases next year, a pace unchanged from their previous forecast.
Chairman Jerome Powell said the Fed was comfortable with a return of once-dormant inflation and emphasized the central bank's desire to avoid a policy error that could result in unnaturally inflating asset valuations or pushing the economy into a recession.
Back home, amid a divergent trend among various index constituents, the key benchmark indices settled with small gains amid volatility yesterday, 13 June 2018. The barometer index, the S&P BSE Sensex, rose 46.64 points or 0.13% to settle at 35,739.16. The Nifty 50 index rose 13.85 points or 0.13% to settle at 10,856.70.
The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 70.77 crore yesterday, 13 June 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 486.78 crore yesterday, 13 June 2018, as per provisional data.
Among corporate news, HDFC Bank will be watched. The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the proposal for grant of permission to HDFC Bank to raise additional share capital of up to a maximum of Rs 24000 crore, including premium, over and above the previous approved limit of Rs 10000 crore, such that the composite foreign shareholding in the bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank, the Ministry of Finance said in a statement yesterday, 13 June 2018.
The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank. It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations / guidelines. The proposed investment is expected to strengthen the capital adequacy ratio of the bank, the statement added.
ICICI Bank said its board approved the sale of up to 2.87 crore shares, representing up to 2% of the issued and the paid-up equity share capital of ICICI Prudential Life Insurance Company in one or more tranches, in any manner permissible under applicable law, including through an 'offer for sale by promoters through stock exchange mechanism' (OFS), as may be permitted and in the manner specified by the Indian regulatory authorities. The announcement was made after market hours yesterday, 13 June 2018.
Lupin announced the launch of its Tobramycin Inhalation Solution USP, having received an approval from the United States Food and Drug Administration (USFDA) earlier. Lupin's Tobramycin Inhalation Solution USP, 300 mg/5 ml is the generic equivalent of Novartis Pharmaceuticals Corporation's Tobi 300 mg/5 ml. It is indicated for the management of cystic fibrosis patients with P. aeruginosa. Tobramycin Inhalation Solution USP, 300 mg/5 ml had annual sales of approximately $99 million in the US (IQVIA MAT April 2018). The announcement was made after market hours yesterday, 13 June 2018.
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