MARKETS LIVE: Indices trade lower as Fed raises rate, signals more hike

Representational ImageMotilal Oswal on TCS With multiple mega deals in the bag, TCS is set to continue on its path of gradual acceleration in growth witnessed over the past two quarters, and potential hitting double-digits in constant currency toward the latter half of the year. Currency movements will also play a key role in helping pull margins back to the aspired range of 26-28%. At 22.3x FY19E and 21.1x FY20E earnings, we remain Neutral on valuations MARKET COMMENT Amar Ambani, head of research, IIFL The Fed has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year. The Fed committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric 2 percent objective over the medium term. US indices closed lower and sentiment in most markets remain subdued. A quiet start is in store after the Indian indices closed flat following a swinging day. Stocks like TCS will be in focus ahead of the buyback announcement on Friday. HDFC Bank got a nod to raise additional capital of Rs 24,000 crore by selling stake to foreign investors MARKET COMMENT Rabobank International on fed rate hike At closer inspection the shift in the dot plot does not seem significant, and the fourth hike for 2018 is still hanging in the balance. While the change in the forward guidance of the FOMC statement is significant it reflects the fact that we have moved closer to neutral. Meanwhile, we have our doubts about the Fed’s optimism on inflation as long as the Phillips curve refuses to materialize. Therefore, for now, we stick to our call for three hikes this year (March, June, September) Sectoral Trend BSE Sensex heatmap Market at open   At 9:15 AM, the S&P BSE Sensex was trading at 35,644, down 95 points while the broader Nifty50 was ruling at 10,821, down 36 points.
Source: Business Standard