Indian Markets Trade Lower Despite US Fed Interest Rate Pause; Godrej Properties Shines
Indian markets were trading lower on Thursday despite the fact that majority of Asian markets were positive. European stocks were trading mixed with Germany lower by 0.3 percent while FTSE marginally positive. Indian markets have witnessed strong moves over the last few sessions and a small correction could be healthy for the markets before the next rally. China has cut interest rates for the second time and this could provide the much needed boost to the Chinese economy.
Many stocks touched 52-week highs in today’s trading session including Apollo Tyres, Aurobindo Pharma, BPCL, Force Motors, DLF, Godrej Consumer Products, JK Cement, Just Dial and Tata Consumer Products.
Varun Beverages stock was trading ex-stock split today. The counter has continued to make new highs and we can expect much better performance from this stock. Godrej Properties has announced its plans to acquire a 7.44-acre land parcel at New Alipore, in Kolkata, for a luxury residential project. The stock was trading firm in today’s session. Paint companies were trading firm as crude oil prices have remained lower over the last few sessions.
US Federal Reserve kept the policy rates unchanged. Market participants were expecting Fed to pause after raising interest rates to levels not seen in decades. US economy is still showing resilience but the inflation is also coming under control. As US Fed mentioned that rates could be hiked two more times this year, the sentiment among investing community wasn’t upbeat.
JP Morgan has started coverage for many hospital stocks in India. The targets given for these stocks could offer them further support. JP Morgan has set target prices for Apollo Hospitals (INR 5950), Fortis (INR 355), Max Health (INR 620) and Medanta (INR 710).
Spandana Sphoorty has denied reports of stake sale to Yes Bank. Still, we can expect the stock to see higher volumes in the coming days.