PSU banks rally; Nifty PSU Bank index up 5%
Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining 5%, its sharpest intra-day gain during past one month on the National Stock Exchange (NSE). READ MORE
Sebi puts plans to allow MFs to be sold via passporting on the back-burner
The Securities and Exchange Board of India (Sebi) has put its plans to allow Indian mutual funds (MFs) to be sold through ‘passporting’ on the back-burner. Passporting would have allowed domestic schemes to be sold in Asian countries without the need for regulatory clearance in the host country.
The regulator is worried about excessive inflows into MFs and fears that being part of such an agreement will bring in additional foreign money into Indian mutual fund schemes, making them more susceptible to sudden outflows, sources said. READ MORE
Lodha Developers files DRHP for IPO, aims to raise Rs 53 billion
Mumbai based property developer Lodha has filed draft red herring prospectus for its IPO. The IPO aims to raise between Rs 50 billion to Rs 53.50 billion, sources said. The issue comprises issue of fresh shares worth Rs 37.50 billion and an offer for sale (OFS) of 18 million shares by the promoters. READ MORE
FOMC meeting—key expectations by Morgan Stanley
We look for no change in the target range of the federal funds rate in its May 01 – 02 meeting, following the 25bp increase to 1.50%-1.75% at the March meeting.
By the time of its May meeting, the FOMC will have the 1Q GDP data in hand.
Despite a weak start to the year, GDP has clearly been held down by transitory factors and we believe a rebound is in the cards. Since the March meeting, the incoming inflation data have confirmed the expected rebound as last year’s telecom price reset rolled out of the 12-month window. We believe March data on core PCE inflation, released April 30, will show an annual rate of 2.0%—touching the Fed’s 2% goal for the first time since spring 2012.
Trader’s guide to India elections says it is time to buy equities
Indian stocks have been roughed up along with most markets in recent months, but there could soon be reason to cheer. National elections are due by 2019, and modern history shows that tends to be a good thing for investors.
While Prime Minister Narendra Modi faces an uphill battle to sustain his party’s majority in the key lower house of parliament, the past six elections show positive returns for Indian equities over the two years that straddle the vote — regardless of whether power changed hands. READ MORE
Indian Hotels stock: Lower debt, higher room revenues to aid margin
The Indian Hotels stock has gained 20 per cent over the past month on expectations that demand growth, presence in the higher growth premium segment, improving margins and debt reduction will reflect on operational performance. Given the improving industry dynamics and strong outlook, brokerages are positive on the prospects. The reason for the positive stance is the improving demand-supply situation, reflected in higher occupancy levels. READ MORE
The markets are trading higher on Friday taking cues from their global counterparts.
Asian shares edged higher on Friday, after US equities were buoyed by solid quarterly earnings and a rebound in technology stocks, while the euro languished near three-month lows after the European Central Bank kept interest rates unchanged.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, while Japan’s Nikkei gained 0.4 per cent. South Korean equities were up 0.7 per cent.
Back home, Reliance Industries (RIL) hit a record high of Rs 1,000 per share, up 2.5% on the BSE in early morning trade on the BSE, ahead of its Q4FY18 results today. The stock surpassed its previous high of Rs 990 recorded on January 23, 2018 in intra-day deal. The textiles-to-telecom conglomerate, RIL is expected to post its best-ever quarterly consolidated net profit, with the figure expected to be close to Rs 100-billion mark.
Apart from RIL, Maruti Suzuki, Sundaram Finance, Atul and JSW Holdings are among few other companies which are likely to declare their Q4FY18 earnings later today.
That apart, banking stocks will also be in focus as the day progresses as market will react to Axis Bank Q4FY18 results and recent developments in IDBI Bank fraud case.
(with Reuters inputs)