June 18, 2026

 

TOP NEWS

 

War update: US President Donald Trump and Iran’s President Masoud Pezeshkian have electronically signed a memorandum of understanding to end the US and Israel’s war on Iran. Both sides say the deal is in effect. Israeli forces continue military operations in Lebanon despite its inclusion in the US-Iran MoU. Neither the US nor Iran has released a physical copy of the agreement. Iranian officials have not confirmed the US version of the text. The initial agreement, as told by the official, will kick off 60 days of negotiations on Iran’s nuclear programme, future administration of the Strait of Hormuz, the lifting of US sanctions, the unfreezing of Iranian assets and a $300bn US-backed reconstruction plan. With this optimism, Brent has reach $78/ barrel. Asian markets opened in green in the range of 0.5-1.5%. Gift nifty indicates a 139 points upside to the bourses. Following are the 14 points which are in news.

 

  1. USA and Iran declared permanent termination of military operations on all front including Lebanon
  2. USA and Iran to refrain from entering to each internal affairs
  3. Final deal to be executed in 6-0 days after negotiating for all this 60 days
  4. Immediate opening of Strait of Hormuz by USA and to be done within 30 days
  5. After signing of agreement Iran will make arrangements for safer passage of commercial vessels with no charge for 60 days.
  6. USA with regional partners to develop a definitive, mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of the Islamic Republic of Iran.
  7. United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran.
  8. Iran shall not procure or develop nuclear weapons. The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal.
  9. Maintaining status quo, without levy of new sanctions against Iran.
  10. Upon the implementation of this MOU, the USA and ran will mutually agree on the procedures related to the release of these funds during negotiations. 
  11. USA and Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal
  12. The final deal will be endorsed by a binding UNSC resolution

 

UK FTA deal: The India-UK Comprehensive Economic and Trade Agreement (CETA) will officially come into effect on July 15, 2026, less than a year after it was signed, in what London described as the fastest implementation of a trade deal following signature in British history. Positive for alcohol stocks and textile and auto stocks.

 

Lupin : The company announced the launch of Azilsartan Medoxomil Tablets, 40mg and 80mg in the United States following the approval from the US FDA for its Abbreviated New Drug Application. The product is bioequivalent to Edarbi of Azurity Pharmaceuticals, Inc. and indicated for the treatment of hypertension in adults to lower blood pressure. Lupin is the exclusive first-to-file for this product and is eligible for 180-day generic drug exclusivity.

 

RVNL: The company bagged a fresh order worth ₹967.93 crore from the East Coast Railway.

 

Shyam Metalics: The company defined its growth trajectory following the post-expansion phase, which includes the expansion of capacities in the pellets, sponge iron, and stainless-steel segments. The company provided a comprehensive analysis of its production capacity progression from FY21 to the post-expansion phase. At its Investor & Analyst Meet, Shyam Metalics presented its FY31 roadmap, which anticipates revenue of approximately ₹42,500 crore and EBITDA of approximately ₹6,200 crore. This implies a compound annual growth rate (CAGR) of approximately 18% and 22% between FY26 and FY31. Overall, management focus is on expanding the range of products they offer, integrating older products, and raising return rates. Positive

 

HFCL: Company secured a Rs 2,666.09 crore contract from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle. The contract involves the supply, installation and commissioning of telecom equipment, creation of an optical fiber cable network, and maintenance of the project for 10 years, including a one-year warranty period.

 

MACRO WRAP

  • FOMC Review: The Fed fund rate range unchanged at 3.50-3.75%, the updated projections and Warsh's repeated emphasis on price stability led markets to bring forward expectations for a tightening by October this year. Warsh also used his first meeting as Chair to signal broader institutional changes. He declined to submit a dot plot projection, shortened the FOMC statement by more than half and announced five task forces to review the Fed's communications strategy, balance sheet, data sources, productivity trends, and inflation framework. While he reiterated that the 2% inflation target would remain unchanged, he made clear that the Fed intends to move away from providing detailed forward guidance on future policy decisions. Sentimentally bearish for Gold
  • The median projection for the Fed funds rate at end-2026 rose to 3.75% from 3.375% in March. Policymakers raised the 2026 inflation forecasts sharply, with headline PCE inflation revised up to 3.6% from 2.7% and core PCE inflation to 3.3% from 2.7%. Growth was revised lower to 2.2% from 2.4% for 2026 and left unchanged at 2.3% for 2027. The unemployment rate forecast for 2026 was lowered to 4.3% from 4.4% previously. The Fed funds futures are pricing in 27bp hike by October 2026 and a total hike of 39bp by year-end. On Tuesday, they priced in just 12bp hike by October and a total hike of 21bp by year-end.
  • The US and Iran have electronically signed a memorandum of understanding, bringing the agreement into force and paving the way for the swift reopening of the Strait of Hormuz and immediate sanctions relief for Iranian oil exports. However, key flashpoints—including Iran’s nuclear programme—have been deferred to future negotiations. Markets are pricing in a reduction in geopolitical risk, with Brent and WTI crude retreating below $80/bbl. Yet US Treasury yields remain elevated, highlighting persistent inflation concerns and a weakening correlation between oil prices and bond markets. Investors now await the full details of the agreement.
  • US retail sales rose 0.9% m/m in May 2026, beating forecasts (0.5%) and April’s revised 0.4%, signalling strong consumption Ex-gas, sales climbed 0.7% with broad-based strength across online, autos, and discretionary categories; restaurants/bars and electronics/appliances declined. The core “control group” for GDP also rose 0.7%, after 0.5% in April.
  • US pending home sales rose 3.8% m/m in May 2026, the largest gain since September 2024 and well above the 0.8% forecast. All regions saw increases, and sales were up 4.8% y/y. NAR’s Lawrence Yun said the jump reflects pent‑up demand and growing acceptance of >6% mortgage rates, while stressing the need for more housing supply
  • The DJIA, S&P500, and Nasdaq fell 1.0%, 1.2% and 1.3% respectively overnight. The Eurostoxx 50 gained 0.7%. The Dollar Index rose 0.6% to 100.09. EUR-USD fell 110 pips to 1.1500. The US 2Y Treasury yield jumped 13bp to 4.18%, while the US 10Y yield rose 5bp to 4.49%. The US 30Y yield fell 1bp to 4.93%. The German 10Y yield was unchanged at 2.93%. The UK 10Y yield fell 4bp to 4.75%. Brent oil prices rose 0.8% to USD79.55. Gold fell 1.7% to USD4,257.

 

OTHER NEWS

 

HCL Tech: HCL Tech announced a multi-year strategic partnership with e.solutions, a Germanybased automotive software specialist and part of Volkswagen Group, for the development of next-generation software-defined infotainment and connectivity solutions. The engagement will focus on scaling AI-enabled future infotainment and connectivity platforms built on Android Automotive, in line with the growing demand for connected, digital in-vehicle experiences. HCLTech will support the development, integration and validation of production-grade human-machine interface (HMI) software for multiple vehicle programs, enabling consistent deployment across varied hardware platforms and global markets.

 

Bharti Airtel: The company has announced the successful completion of the first phase of a strategic initiative in partnership with 4 Corps of Indian Army headquartered at Tezpur to strengthen mobile connectivity across remote regions in Arunachal Pradesh. With this milestone deployment, Airtel has become the first and only service provider to deliver reliable mobile connectivity in the mountainous, high-altitude, and difficult-to-access region

 

Kirloskar Ferrous: Company secures US$13.51 million export contract, an international contract for the supply of 30,000 MT (+/-5%) of basic grade pig iron. The company has received a $13.5 Mn order to supply basic-grade pig Iron. Positive

 

Under the Comprehensive Economic and Trade Agreement (CETA), India and the UK decided to protect their trade in steel. The UK's steel safeguard measures do not apply to nearly 85% of India's steel exports. This is a positive development for domestic steel players like JSW Steel.

 

Krishna Institute of Medical Sciences : The company has announced the launch of its Qualified Institutions Placement (QIP) issue of equity shares on June 16. The floor price has been fixed at Rs 771.73 per share.