John Williams, president of the Fed Bank of San Francisco, said Sunday on Fox News the US economy should be solid enough to merit raising rates in 2016. The Fed’s latest policy meeting minutes also signaled policymakers’ willingness for a June move.
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European markets were trading in red; France’s CAC decreased 12.44 points or 0.29% to 4,341.46, UK’s FTSE 100 slipped 2.48 points or 0.04% to 6,153.84 and Germany’s DAX was down by 0.99 points or 0.01% to 9,915.03.
Of the 30-share Sensex pack, 17 ended higher. Among other Asian markets, Hong Kong’s Hang Seng was down 0.39 per cent, Japan’s Nikkei shed 0.67 per cent, while the Shanghai Composite index fell 0.92 per cent in early trade on May 24.
China’s Shanghai Composite is now trading 0.90% lower at 2,818.15 points.
Investors’ cautious stance ahead of May month expiry in the derivatives segment on Thursday impacted trading, they said. The stock fell more than 5% last week on regulatory worries despite its impressive earnings for the March quarter. On the flip side, Lupin down by 3.31%, Tata Steel down by 2.65%, ONGC down by 2.42%, Cipla down by 2.37% and Bank of Baroda down by 2.26% were the top losers.
Somany Ceramics reported a 76.31% increase in standalone net profit at Rs 26.06 crore for the fourth quarter ended March. Frontline healthcare stocks are in for a hard 2016 as regulatory troubles increase the risk premium on the stocks and limit the upside, analysts said. The housing finance major had rallied 8.5% in May till Friday. Larsen will report earnings on Wednesday and BHEL on Friday.
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Indian equity benchmarks commenced the week on a sluggish note as the indices showcased an unenthusiastic performance on Monday and settled with moderate cuts of around a quarter percent. But vast selling in healthcare, capital goods, energy and technology added some pressure on gaining front. Hindustan Unilever closed 0.85% up. The port operator had shed almost 25% after its March quarter earnings.
