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Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The dominant theme impacting equity markets globally is the synchronised global monetary tightening and the consequent fears of economic slowdown. The probability of the US slipping into recession is much higher now. Markets are discounting these concerns. The PE of S&P 500 is now around 16, close to the long-term average. Europe is trading at around 11 times. Markets will bottom out earlier than the economy does. In India, valuations have declined, but are even now above long-term average. So, FPIs will continue to sell, capping a relief rally which can come any time. It is impossible to predict the market bottom. Ideal Investment strategy now should be calibrated buying in high quality growth stocks. Mutual fund SIP investors can consider increasing the amount of investment.
Voda Idea, RBL Bank, SAIL among most active stocks on NSE
Price as on 17 Jun, 2022 09:40 AM, Click on company names for their live prices.
Sensex Today LIVE: Index extends decline, slips below 51,000
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BOJ maintains ultra-low rates, warns it is closely watching yen moves
The Bank of Japan maintained ultra-low interest rates on Friday and its guidance to keep borrowing costs at “present or lower” levels, signaling its resolve to focus on supporting the economy’s recovery from the COVID-19 pandemic. However, in a nod to the hit that the yen’s recent sharp declines may have on the economy, central bank said it must “closely watch” the impact exchange-rate moves could have on the economy. At the two-day policy meeting that ended on Friday, the BOJ maintained its -0.1% target for short-term rates and its pledge to guide the 10-year yield around 0% by a 8-1 vote.
Asian shares open mostly lower
Asian shares opened with fresh losses on Friday morning following another sell-off on Wall Street as a series of hikes by central banks to fight inflation this week fanned concerns that economies could tip into recession. MSCI’s index of Asia-Pacific shares outside Japan was down by 0.42 per cent.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 25 points, or 0.16 per cent, higher at 15,334.50, signaling that Dalal Street was headed for a positive start on Friday.
Q4 results today
Supreme Infrastructure India, Aroma Enterprises and JR Foods are among companies which will announce their quarterly earnings today.
Tech View: Nifty50 falls below key support, trend negative
Nifty50 fell for the fifth straight day on Thursday and formed a long bearish candle on the daily chart that engulfed the previous session’s candle. During the day, the 50-pack index could not hold its key support levels as it entered the oversold territory, as suggested by the 14-day relative strength index. While the trend broadly stays positive, some bounce after the steep fall is likely.
Oil edges down as demand concerns weigh
Oil prices edged slightly lower on Friday as worries about global economic growth and uncertainty weighed on markets following numerous interest rate hikes around the world this week. Brent crude futures fell 83 cents, or 0.8%, to $118.98 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell to $116.79 a barrel, down 80 cents, or 0.7%.
Tokyo stocks open sharply lower after US falls
Tokyo stocks opened sharply lower on Friday after a rout on Wall Street as more central banks hiked interest rates in efforts to tame runaway inflation, fuelling recession fears. The benchmark Nikkei 225 index was down 2.60 percent, or 687.44 points, at 25,743.76 in early trade, while the broader Topix index slipped 2.44 percent, or 45.50 points, to 1,822.31.
Wall Street plunges as recession fears grow
US stock indexes closed sharply lower on Thursday in a broad sell-off as recession fears grew following moves by central banks around the globe to stamp out rising inflation after the Federal Reserve’s largest rate hike since 1994. The Dow Jones Industrial Average fell 741.46 points, or 2.42%, to 29,927.07, the S&P 500 lost 123.22 points, or 3.25%, to 3,666.77 and the Nasdaq Composite dropped 453.06 points, or 4.08%, to 10,646.10.
Rupee spurts 12 paise to 78.10 per US dollar
The rupee recovered from its record low to close 12 paise higher at 78.10 against the American currency on Thursday, tracking the overnight weakness of the dollar and falling crude oil prices.
Sensex, Nifty on Thursday
The BSE Sensex hit a 52-week low of 51,425.48, before closing the day at 51,495.79, down 1,045.60 points or 1.99 per cent. Nifty50 also fell to its 52-week low of 15,335.10. It eventually closed the day at 15,360.60, down 2.11 per cent.