Indian equities ended higher for a fifth straight session, recovering early losses despite hawkish Federal Reserve comments. Banking stocks led gains, while broader markets stayed positive. Analysts remain optimistic on Nifty's trend but caution that near-term consolidation may follow the recent rally.
The Reserve Bank of India will conduct a Rs 1 lakh crore variable rate repo auction on June 19. This move aims to manage liquidity in the banking system. The auction will help keep overnight money market rates stable. This follows recent liquidity infusions by the central bank. The RBI is actively managing funds to ensure smooth financial operations.
Domestic markets remained range-bound with a positive bias as optimism from the US-Iran peace deal faded amid hawkish Federal Reserve commentary. Rising energy-driven inflation concerns kept investors cautious. Analysts recommended VTL and Radico Khaitan, citing bullish breakouts, strong momentum and potential upside.
Infosys and Wipro ADRs plunged following Accenture’s reduced FY26 revenue forecast. This downgrade highlights enterprise caution regarding discretionary IT spending, impacting Indian IT giants despite their AI investments and ongoing transformation projects, overshadowing recent cybersecurity acquisitions.
SEBI has proposed reforms to the Margin Trading Facility, including increasing broker net-worth requirements to Rs 5 crore, permitting LLPs to offer MTF, and expanding funding avenues. These changes aim to enhance operational efficiency and strengthen risk management for brokers.
Wall Street's major indexes saw gains on Thursday, with technology shares spearheading the advance. Optimism surrounding a potential Middle East peace deal helped to overshadow concerns about a hawkish Federal Reserve under new Chair Kevin Warsh. The Dow, S&P 500, and Nasdaq all opened higher.
Fund Manager Christy Mathai sees easing war-driven inflation fears, expecting a shorter earnings hit. He's selectively adding to his portfolio, favoring financials and IT over defense and chemicals. Mathai anticipates an AI-driven inflection point for IT services and sees near-term tailwinds for FMCG, while adopting a stock-specific approach to pharma.
Charles Ellis highlights how stocks often decline together during market stress, challenging the perceived safety of diversification. The piece explains how investor sentiment drives correlations higher in crises and why long-term investors should remain disciplined, as such phases are temporary and often followed by recovery led by fundamentally strong companies.
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