HOME > BUSINESS > Relief rally seen if US Fed postpones hike

Relief rally seen if US Fed postpones hike

stockEquity markets across the globe, including and particularly emerging markets, will see a relief rally if the US Federal Reserve puts off a rate hike today, said Rohit Gadia, Founder & CEO, CapitalVia Global Research.

US Fed will conclude its policy meet today and give clarity on the much debated rate hike. Indian markets are shut today, but will react on Friday.

“If they don’t hike rate, it’s an admission that Wall Street threatens to reverse the recovery on Main Street,” he said.

“It will lead to a short-term relief rally on Wall Street and relatively positive for Emerging Markets, commodities and resources, as it unwinds the higher US growth-rates-dollar narrative. It will be positive for higher-yielding assets and will be positive for growth value, as the Fed is confirming the deflationary recovery.”

But If the US Fed increases the interest rates on today then this has a spillover effect on emerging market currencies including India, he added.

“The rupee could depreciate between 5 to 10 per cent on a sustained basis,” he said.

Asset allocation toward “strong dollar” & “Fed tightening plays” will harden, with the exception that value will likely outperform growth, he added.

“If markets open gap up on Friday Investors should wait for the market to settle down for at least one hour and start buying strong counters whose trend is up or it would be better to wait for first half and buy in latter half of trading session. If markets open gap down : Investors should wait for the market to settle down for at least one hour and start selling the weak counters whose trend is down.”

Follow ULTRA.news
GST complaints coming mainly from tax-evaders – Adi Godrej Adi Godrej, chairman of one of India's largest manufacturing and real estate groups, said most of the complaints about the new Goods and Services Tax is coming from businesses that have been built on a model of tax evasion."The complaints about the GST are mainly coming from ...
NRI bank accounts see mega outflows as Gulf crisis hits earnings Net bank deposits by non-resident Indians have fallen by nearly 90% so far this financial year as more and more foreign workers dipped into their bank accounts in the face of a crisis in the Gulf region, industry association ASSOCHAM said.Net bank deposits -- the difference ...
India sees record-breaking Private Equity inflows in 2017 – Study The amount of money invested or committed by private equity firms in India reached an all time high in the first nine months of this year, said Venture Intelligence, a research firm tracking unlisted company financials, transactions and valuations.PE firms invested about $17...
Worth Rs 70,000 cr, Patanjali’s Acharya Balkrishna named to India’s richest Acharya Balkrishna of Patanjali | WikipediaAcharya Balkrishna of Patanjali has emerged as the latest addition to the list of the top ten richest people in India, which is still headed by Mukesh Ambani, chairman of Reliance Industries.Haridwar-based Acharya Balkrishna, ag...
Bajaj Finance offers 8.1% interest on FD to seniors, 7.85% to others Bajaj Finance said it will offer 8.10% on fixed deposits to senior citizens, making it among the highest interest rates offered on fixed deposits in the country. For others, it will be 7.85% per year.The non-banking finance company claims to have the highest credit ranking ...
Infosys included in Dow Jones Sustainability Index Infosys said it has been inducted into the Dow Jones Sustainability Indices (DJSI) and is now part of two of the indices -- DJSI World and DJSI Emerging Markets.The indices measure the economic, environmental and social performance of companies and are based on the companie...
Wipro announces details of its Rs 11,000 cr share buyback Wipro has announced details of its buy back of up to 343.8 mln shares or about 7.06% of its total equity base at a price of Rs 320 each for up to Rs 11,000 cr.The Buyback Size is 23.15% of the fully paid-up Equity Share capital and free reserves as per the audited standalone ...
SBI, Canara Bank lead in opening unorganized sector pension accounts State Bank of India has opened the largest number of accounts under India's universal pension scheme for the unorganized sector, the government said today.State Bank of India has opened 51,000 out of the total 3.07 lakh pension accounts opened by banks under the scheme, whic...
India to announce new industrial policy in October The Indian government is likely to announce a new industrial policy in October, the ministry of commerce and industry said, and sought feedback from the public.Commerce and industry minister Nirmala Seetharaman will hold a final round of consultations with stakeholders soon,...
Modi’s reforms drag, power plants to face low loads, study India’s energy sector is facing low capacity utilisation in power generation as plant load factor is estimated to remain low at around 62 per cent until 2018-19, noted a recent ASSOCHAM-Crisil joint study.The study also expressed concern over the slow pace of reform implement...
Expecting waivers, farmers stop paying back bank loans? The write-off of farm loans in Uttar Pradesh and Maharashtra seems to be encouraging farmers in other states to stop paying back their farm loans to make sure that they will get the benefits of any farm loan waiver program in their state. This has led to a sharp increase in farm ...
IT companies using illegal tactics to force workers to resign: FITE The Forum for IT Employees, arguably the IT workers rights organization with the largest number of well-wishers and supporters, accused IT companies of using illegal and unethical means to force their workers to submit their resignations.In a meeting with Maharashtra Chief Mi...
Demonetization took India forward by 3 years – SBI The demonetization of currency notes late last year has doubled the number of card transactions and helped push India's payment digitisation by three years, State Bank of India said in a note."Even after seven months post demonetization, the transaction value is quite large ...
Mahindra Finance to raise Rs 2,000 cr via debentures Non-banking financial services company Mahindra & Mahindra Financial Services said it plans to raise Rs 2,000 cr by issuing debt instruments to the public.The non-convertible debenture issue will open on July 10.The NCDs carry a rating of IND AAA from India Ratings and BW...
Are ‘truly free’ demat and trading accounts here in India with Finvasia? Finvasia, a technology-driven online broking start-up, announced that it has rolled out what it claimed was India's first 'truly' free online demat account for investing in stocks and derivatives, including futures.There have been many 'free demat account' providers in the p...
Glaucus questions stock price of Hong Kong-listed Fullshare Holdings Ltd Glaucus Research Group, a California-based short seller, said it was selling Hong Kong-listed developer Fullshare Holdings due to peculiar trading patterns seen in the stock's counter."Fullshare is supposedly a commercial and residential property developer, but this business ...
Indian IT industry facing layoffs as conditions worsen, warns Assocham Trump unveiled his 'Buy American, Hire American' program yesterdayIndian IT companies are bound to see "some laying off" of their work force back home due to various negative forces impacting the industry, Assocham -- an association of various industries -- warned."With ...
US Fed unlikely to reverse quantitative easing this year: HDFC Securities US Federal Reserve BuildingBroking and financial firm HDFC Securities Ltd said it does not expect the US Federal Reserve to start sucking out the liquidity that it has infused into the global financial market in the last nine years any time soon.The comments came in the ...
Rs 1.7 lakh cr deposited via demonetization may not be withdrawn – SBI Monthly cash withdrawals for all banks | source:SBI ResearchThe Indian banking system is likely to get a permanent liquidity boost of Rs 1.7 lakh cr due to the demonetization of high-denomination bank notes, State Bank of India chief economic adviser said in a note to bank c...
Yes Bank denies billion dollar QIP rumors Yes Bank, one of India's youngest, and fastest-growing banks, said it had no plans to go for a billion-dollar qualified institutional placement of its shares as reported by the media.The bank had tried to do a mega share sale in September last year, but the effort didn't find...