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ECB, BoE Meetings; WPI Inflation; Gujarat Exit Poll & Top Cues to Move Markets Today
Fri, 15 Dec Pre-Open

On Thursday, Indian share markets closed volatile session on stronger note as the benchmark indices rallied ahead of Gujarat exit polls later in the day. Votes from the Gujarat election will be counted on 18 December and the results will be announced the same day.

The Sensex rallied 194 points while NSE Nifty gained 59 points. Among BSE sectoral indices, consumer durables sector fell 0.6%, followed by IT sector 0.1%. On the other hand, oil & gas index was up 1%, banking sector and FMCG sector were up by 0.7%.

Top Stocks in Action Today

Torrent pharma share price will be in focus today as the company has completed acquisition of branded formulation business of Unichem Laboratories (Unichem) for India and Nepal, including its Sikkim manufacturing facility, on a going concern basis by way of slump sale, on 14 December 2017.

Shree Cement has lighted-up its Clinkerisation unit (KiIn-2) having capacity of 2.60 million tonnes per annum (MTPA) at Baloda Bazar near Raipur in Chhattisgarh on 14 December 2017. The stock will be in focus today.

Lupin share price will hog limelight on the reports that it has received final approval for its Tydemy tablets from the United States Food and Drug Administration (USFDA) to market a generic version of Safyral Tablets.

Reliance Communication's submarine arm Global Cloud Xchange (GCX) has entered into collaboration with Vietnam's CMC Telecom to enhance connectivity on their network.

Dr. Reddy's Laboratories has received the Establishment Inspection Report (EIR) from the US Food & Drug Administration (USFDA) for its Formulations Manufacturing Plant - 3 at Bachupally, Hyderabad as closure of audit.

JK Cement is planning to add up to 8 million tonne per annum (MTPA) capacity in the next five years, taking the total installed capacity to around 18 (MTPA) for grey cements.

Hexaware Technologies has entered into a partnership with Pegasystems Inc. to enhance its focus in the Business Process Management (BPM) service segment. With this agreement, Hexaware will become a Registered Business Partner for Pega.

WPI Inflation at 8-month high in November

Inflation based on the wholesale price index (WPI) accelerated to an eight-month high of 3.9% in November, from 3.6% in October, adding to the string of worrisome economic data released this month.

Reportedly, retail inflation unexpectedly jumped to a 15-month high of 4.9% in November, and industrial production slowed to 2.2% in October.

WPI inflation rose mainly account of a sharp increase in fuel and food prices, according to data released by the commerce ministry. While fuel price index rose by 8.8%, food prices index rose 6.1%. The increase in food prices was led by the sharp increase in vegetable prices that rose by 60% mainly due to soaring onion prices.

Global Stock Market Drivers

European and Asian stocks slid Thursday following the interest rate hike by the US Federal Reserve. Investor sentiment faltered after China and Hong Kong carried out modest hikes in tandem with the Fed, as British and European central bank decisions loomed.

Notably, the Federal Reserve raised its benchmark rate for the third time this year as anticipated, increasing its short-term rate by a quarter point. Policymakers at the US central bank said they plan to continue tightening, indicating three more rate hikes are in store for 2018. The Fed also raised its growth forecast for the US economy, the world's biggest, and predicted that the job market will continue improving.

But, why should we in India be worried about which way the American economy and interest rates are headed? As Vivek writes in The Vivek Kaul Letter:

  • "The answer is simple. The United States still forms around one-fourth of the global gross domestic product(GDP). It remains the largest consumer in the world. And any global recovery isn't going to happen, without the American economy finding its way back to where it was during its heydays or somewhere close to it."

Here are some of the key events scheduled for this week:

  • The ECB, Bank of England and Swiss National Bank will set monetary policy at their respective meetings.
  • US retail sales data is due.
  • European lawmakers will continue to debate Brexit and weigh moves on the next step, while North America Free Trade Agreement negotiators will meet again.

Bulk & Block Deals

Global financial services major Morgan Stanley sold shares of various firms, including Bharti Airtel and HDFC, for Rs 6.4 billion through open market transactions. According to the block deal data available with BSE, Morgan Stanley offloaded 12.1 million shares of four firms for Rs 6.4 billion. The shares were disposed of in the range of Rs 259.7-1,698.5 apiece.

Meanwhile, Religare Enterprises share price rose 5% after huge block deal. Around 11 million shares of the company changed hands in block deal.

Our team of Equitymaster analysts have been working on a project to track the smartest minds in value investing. They have compiled a special report on them, called The Superinvestors of India.

Now, because of insights from these interactions, the team has glued their eyes on insider activity and bulk and block deals...

As per them...

  • "The three approaches - tracking superinvestor shareholdings, catching these moves early through bulk and block deal disclosures, and keeping tabs on changes in promoter holdings - have unveiled some critical smart money secrets..."

Oil Prices Up on Lower US Crude Stocks

Oil markets rose on Thursday, lifted by a fourth straight weekly fall in US crude inventories, though climbing output capped prices well below the 2015 highs reached earlier this week.

US West Texas Intermediate (WTI) crude futures were at US$56.77 a barrel, up 17 cents, or 0.3% from their last settlement. Brent crude futures, the international benchmark for oil prices, were at US$62.84 a barrel, up 0.6% from their last close.

To keep a tab on the movements in crude oil and other commodities, you can read the stock market commentary from the Daily Profit Hunter team. Their commentary tracks the developments in the global economy as well as stock, currency and commodity markets.

Income Tax Department Conducts Raids at Bitcoin Exchanges Across India

From a cost of Rs 23000 per bitcoin before demonetisation to Rs 1 million now. Bitcoins are clearly the currency to vote for as the Income tax is fast realising.

But are bitcoins, cryptocurrency of the virtual world, becoming a mode for laundering money. The Income Tax thinks so and on cue raided Bitcoin exchanges across the country.

Nine exchanges were raided under the command of the Bengaluru investigation wing. Surveys were conducted in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning.

Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause of concern among central bankers around the world for quite a while now.

While the world of digital currencies is intriguing, it can get very confusing for the layman. Our team member, Ankit Shah, Research Analyst, has decided to study cryptocurrencies and help our readers understand them.

Ankit has released a premium guide for Equitymaster Insider subscribers, titled Bitcoin 101 which contains everything you need to know about bitcoins and other digital currencies.

If you haven't been receiving Ankit's insights, get on the Insider's list now.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


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