Market Live: Midcap outperforms Sensex; oil prices rebound after Tuesday's sharp fall
Borosil Glass Works in News
"Borosil Afrasia Middle East Trading LLC', a company in which our wholly owned subsidiary i.e. Borosil Afrasia FZE holds 49% shares has been wound up with effect from December 18, 2018," the company said.
Oil Prices Rebound After Sharp Fall
Oil prices rebounded after falling for the past three sessions with worries about oversupply and a slowing global economy keeping markets under pressure though sentiment may be shifting as falling equity markets seemed to stabilize. West Texas Intermediate futures (WTI) climbed 0.67 percent, to $46.55 per barrel after plunging 7.3 percent the day before in a session when it touched its lowest since August 2017. Global benchmark Brent crude futures rose 0.59 percent at $56.59 per barrel. It dropped 5.6 percent on Tuesday, at one point hitting a 14-month low. Source: Reuters
Market Update:
Benchmark indices continued to trade higher and are heading towards positive close for seventh consecutive session. After pricing in states poll outcome, the rally is largely led by fall in oil prices and appreciation in rupee. The 30-share BSE Sensex rallied 121.18 points to 36,468.26 and the 50-share NSE Nifty gained 47.60 points at 10,956.30. The broader markets outperformed frontliners with the Nifty Midcap and Smallcap indices rising a percent each.
Mishra Dhatu Nigam Bags Order
Mishra Dhatu Nigam shares rallied 6 percent intraday after the company has finalised one order worth about Rs 600 crore. The contract for the same is expected to be signed shortly, the company said.
US Federal Reserve to Announce its 2-day Meet Outcome
The US Federal Reserve is expected to raise interest rates on Wednesday, but may cut the number of hikes it anticipates next year and signal an earlier end to its monetary tightening in the face of financial market volatility and rising recession fears.
The central bank due to announce it is decision at 2 p.m. EST (1900 GMT) after its final two-day policy meeting of the year. Fed Chairman Jerome Powell is schedule to hold a press-conference half an hour later.
Investors widely expect the Fed will lift borrowing costs by a quarter of a percentage point to a range of between 2.25 percent and 2.50 percent. It would be the fourth rate hike of the year and the ninth since the central bank began its current tightening cycle in December 2015. Source: Reuters
Rupee Strong at 70 A Dollar
Continuing its rising spree, the rupee appreciated 37 paise to trade at 70.07 a dollar on persistent drop in crude prices amid fresh foreign fund inflows and sustained selling of the American currency by exporters and banks.
Besides, the dollar's weakness against some currencies overseas ahead of US Federal Reserve's policy meet outcome later in the day also supported the rupee.
Brent crude, an international benchmark, dropped 4.2 per cent lower to USD 57.07 per barrel Tuesday, a 14-month low.
The rupee Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion. Source: PTI
PhillipCapital Downgrades ABB India
ABB India shares fell nearly 4 percent in morning after global investment firm PhillipCapital downgraded the stock as it feels the sale of power grid business deal seems to have priced in.
The research house believes that ABB has moved in the right direction by exiting a project-heavy and low-growth and low-return business while focusing its energies on the evolving high-growth opportunities.
It believes that the positive of this deal and the change in return profile of ABB India are adequately captured in the current valuations. Hence, it downgraded ABB rating from neutral to sell with an unchanged target price of Rs 1,200, implying 14 percent potential downside.
