ED attaches assets worth Rs 17.7 crore in alleged Rs 804 crore fraud against SBI and BoB
Enforcement Directorate has attached assets worth Rs 17.7 crore in alleged Rs 804 crore fraud against SBI and BoB. The assets of M/S ABC Cotspin and related entities attached based on case filed by CBI, reported CNBC-TV18.
Bank Of Baroda was quoting at Rs 98.00, down Rs 1.95, or 1.95 percent and State Bank of India was quoting at Rs 443.60, down Rs 7.90, or 1.75 percent.
Market at 3 PMBenchmark indices were trading near the day’s low with Nifty below 15400.The Sensex was down 957.08 points or 1.82% at 51584.31, and the Nifty was down 308.20 points or 1.96% at 15384. About 537 shares have advanced, 2626 shares declined, and 82 shares are unchanged.
Radhika Rao, Senior Economist | DBS Bank
Overnight rate action underscored US Fed’s keenness to bring forward policy adjustments and our inhouse call is for the policy rate to be at 3.5% by end of the year. An aggressive US hike cycle puts considerable pressure on the Asian central banks to follow suit, as their policy dashboard broadens from being focused on domestic growth and inflation path, to also include financial stability and outflow risks.
The need to anchor domestic inflationary expectations and to preserve financial market stability, are likely to nudge regional central banks to undertake timely and frontloaded action even if they don’t seek to match the quantum or pace of the US hike cycle.
Nifty Information Technology index shed 2.5 percent dragged by the Tech Mahindra, Mindtree, L&T Technology Services
Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices were trading 0.42% up near $115.80 per barrel. Crude oil prices recovered on Thursday from a steep drop in the previous session, supported by tight oil supply and peak summer consumption, after a U.S. rate hike sparked fears of slower economic growth and less fuel demand. The US crude production, which has been largely stagnant over the last few months, edged up 100,000 barrels per day last week to 12 million bpd, its highest level since April 2020.
We expect crude oil prices to trade sideways to down with resistance at $119 per barrel with support at $112 per barrel. MCX Crude oil July contract has important support at Rs. 8750 and resistance at Rs. 8980 per barrel.
Pranjal Kamra – CEO, Finology Venture on Federal Reserve’s hike of interest rate:
The Federal Reserve hiked the interest rate by 75 basis points, apparently the highest in some three decades. This didn’t come as a surprise if you look at the worsening inflationary pressure. While the rate hike could help; word has it, a ‘mild recession’ is on the cards. As all nations take cues from the US, these could replicate in India as well. On one hand, India is on a rate hike spree to curb inflation, that is at near-decadal-highs. On the other hand, the growth in consumer spending has slowed down this year, and further interest rate hikes could aggravate this problem. Moreover, higher interest rates in the US mean emerging markets like India become less lucrative for investments. Now, it has to be seen how the RBI strikes a balance between inflation control and economic/investment growth.
All central banks are grappling with and taking adequate measures to control inflation. Don’t see an adverse impact of the Fed rate hike on India, says Department of Economic Affairs Secretary Ajay Seth pic.twitter.com/om0gXzekFf— CNBC-TV18 (@CNBCTV18Live) June 16, 2022
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services:
Nifty opened with a gap up but failed to hold at higher levels and drifted lower. On daily scale it has broken its important support zone of 15735 and is witnessing aggressive selling pressure. India VIX is up near 22 zones which indicates volatility likely to continue and it needs to cool down for stability in the market. Now as long as it is below 15500 zone we can expect lower levels of 15350 and 15000 whereas resistance is faced near to 15735 and 15888 zones. Market breadth is negative which indicates that the bears are dominating and facing resistance at higher levels.
Bank Nifty opened with a gap up in line with Nifty but couldn’t sustain at higher levels and drifted lower. It has breached the low of last 3 trading sessions and forming a bearish engulfing candle on the daily scale indicating aggressive selling pressure. Now as long as it holds below 32750 zones we can expect a move towards 32000 zones whereas resistance are placed at 33000 and 33500 zones.
Today, we are witnessing long built up in stocks like Maruti, ICICI Bank, UBL, Crompton and Deepak Nitarte etc. while short build-up is visible in counters like Coalindia, Navin fluorine, AuBank, Polycab, Ramcocem etc.
Nifty is expected to trade with negative bias and can utilise any bounce as a selling opportunity till it holds below 15735 zone. At current juncture, we are advising to be with selective stocks and one can look for selling opportunity in UltraTech, Voltas, JSW Steel, Laurus Labs etc.
Confident of bringing down price of round the clock renewable power to Rs 6.5-7/kWh. Looking to increase penalties for missing renewable purchase obligations, says Power Minister @RajKSinghIndia at India Energy Transition Summit pic.twitter.com/2PyxxKl0iA— CNBC-TV18 (@CNBCTV18Live) June 16, 2022
Market update at 2 PM: Sensex is down 753.96 points or 1.43% at 51787.43, and the Nifty fell 241.10 points or 1.54% at 15451.10.
BSE Auto index slipped 1 percent dragged by Cummins India, Tata Motors, Hero MotoCorp
Madhavi Arora, Lead Economist | Emkay Global Financial Services
While we believe the money market may have largely baked it in, as we previously argued, the pain would likely linger for equities and credit markets. Our study also shows that historical precedent depicts how equities and credit struggle well after rates market peak.
Thus investors may brace ahead at best for occasional bear market rallies in coming months. 2023 will possibly, ironically, probably deliver recession but broadly positive returns across multiple asset classes, because 2022 will have front-loaded so much stagflation into valuations.