Sensex glows in Fed hopes, closes near 7-month high

The 30-share BSE Sensex closed near seven-month high on Thursday, though it remained lacklustre throughout the session. The index, which rose 708 points in seventh consecutive sessions since September 6, gained just 21.13 points today to close at 18,021.16.

Liquidity was another factor that led the upside for seven days; foreign institutional investors have bought more than Rs 22,000 crore worth of shares since July.

The upmove in banking majors, capital goods, PSU oil & gas, technology, two-wheeler majors and FMCG stocks counterbalanced the weakness in telecom, auto (barring two-wheeler), healthcare, HDFC pack and steel stocks.

Meanwhile, the 50-share NSE Nifty moved up 4.35 points to 5,435.35, but broader markets closed slightly lower.

On the global front, European markets were marginally lower (at the time of closing of Indian equities) as investors awaited the decision of the Federal Reserve's policy meeting that will be around 12 hours IST. Majority of economists expect the third round of quantitative easing or some bond buying programme by the Fed, especially after the disappointing jobs data last week.

Back home, inflation for August, which will be announced tomorrow, is another major event before the RBI policy on September 17.

Country's largest lenders State Bank of India and ICICI Bank gained 0.5% and 1%, respectively while their rival HDFC Bank was down 0.23%. Housing finance company HDFC declined 0.7%.

Software services exporters Infosys, TCS and Wipro were up 0.2-0.8%. FMCG major Hindustan Unilever rose 1%.

State-run oil retailer BPCL went up nearly 2% on continued hopes of fuel price hike. Today at 18:30 hours IST, cabinet committee on economic affairs will meet to discuss fuel price hike issue. HPCL and IOC moved up over 0.6% while oil & gas producer ONGC was up 1% as the subsidy sharing burden may be declined.

Engineering conglomerate Larsen & Toubro gained 0.7% and power equipment manufacturer BHEL jumped 1.5%.

Two-wheeler majors Hero Motocorp and Bajaj Auto were up 1.2-1.9% while Tata Motors, Maruti Suzuki and M&M were down 0.8-1.4%.

Top telecom operator Bharti Airtel plunged nearly 3% and Reliance Communications tanked 2.5% whereas Idea Cellular rallied over 2%.

Among pharma stocks, Cipla and Ranbaxy Labs lost 2-2.5%; Sun Pharma declined 0.6% while Dr Reddy's Labs rose 0.5%.

Aviation stocks like Jet Airways, SpiceJet and Kingfisher Airlines spiked 2-5% on hopes of hike in FDI limit in aviation sector.

Declining shares outnumbered advancing by 1576 to 1216 on the Bombay Stock Exchange.

Indian shares remained in a range around their previous closing values as investors awaited the decision of Federal Reserve. Expectations have been mounted that Fed will announce economic stimulus or bond buying programme to boost the economy.

The 30-share BSE Sensex rose 11 points to 18,011.15 and the 50-share NSE Nifty was unchanged at 5431.

Two-wheeler majors Hero Motocorp and Bajaj Auto gained 1.9% and 1.5%, respectively. Country's largest car maker Maruti Suzuki fell more than 1%.

State-owned power equipment manufacturer BHEL went up 1.5%. Oil & gas producer ONGC and FMCG major Hindustan Unilever were up over 1%.

Top telecom operator Bharti Airtel plunged nearly 3% and drug producer Cipla tanked 2.5%.

Jindal Steel has been falling (barring yesterday) since the start of this week due to fears of de-allocation of blocks. The stock was down 1.41% today.

Housing finance company HDFC declined 1%.

Oil retailer BPCL rallied over 2% on hopes of fuel price hike by the cabinet soon. Shares of Ranbaxy Labs and Siemens were down 1.5%.

Indian equity benchmarks remained directionless since early trade, especially ahead of the US Federal Reserve's decision later in the day. Asian and European markets were slightly down, but investors looked cautiously optimistic for further stimulus action to bolster the world's largest economy.

Naveen Mathur of Angel Broking said, "A green consensus now building upon that the Fed would come up with some kind of a quantitative easing. There is news that they may buy something around USD 300 billion into the US treasuries and USD 400 billion into the mortgage bonds."

The 30-share BSE Sensex rose 4 points to 18,004 while the 50-share NSE Nifty fell 2 points to 5,429. The Indian rupee fell by 23 paise to 55.45 against the US dollar.

Drug producer Cipla and telecom operator Bharti Airtel were down 2.5% each. Healthcare company Ranbaxy Labs went down nearly 2%.

Shares of Sterlite Industries, Jindal Steel & Power and Tata Motors fell 1.4% each. Sun Pharma slipped 0.7% on profit booking after rising quite sharply in previous few sessions.

Housing finance company HDFC and private sector lender HDFC Bank plummeted 0.76% and 0.4%, respectively.

Shares of ICICI Bank, Hindustan Unilever, Reliance Industries, Larsen & Toubro and State Bank of India gained 0.3-0.8%.

Oil retailers BPCL, HPCL and IOC gained 1-2% ahead of continued hopes of fuel price hike. Sources said the cabinet committe on political affairs will be meeting today evening. Oil & gas producer ONGC too rallied more than 1%.

Power equipment maker BHEL rose 1.5% and two-wheeler major Hero Motocorp climbed 2%.

The 50-share NSE Nifty remained flat amid seesaw trade today as the upmove in banks, oil & gas, capital goods and two-wheeler stocks offset the weakness in healthcare, HDFC pack, four-wheeler and metals stocks.

The BSE benchmark rose 26.52 points to 18,026.55 and the NSE benchmark was up 6 points to 5,436.85. The broader markets too were flat as the market breadth was neutral.

Oil & gas producers Reliance Industries and ONGC were up 0.7% and 1.8%, respectively.

Country's largest lenders State Bank of India and ICICI Bank moved up 0.8% each while their rival HDFC Bank was down 0.15%. Housing finance company HDFC fell 0.85%.

Capital goods majors Larsen & Toubro and BHEL gained around 1%. FMCG major Hindustan Unilever and software services exporter Wipro rose 0.56%.

Hero Motocorp, India's largest two-wheeler maker went up more than 2% while its rival Bajaj Auto was up over 1%.

Drug producers Cipla and Ranbaxy Labs, and telecom operator Bharti Airtel topped the selling list, falling 2-3%.

In the second line shares, Redington India, Cholamandalam, Gujarat Flourochem, Financial Tech and Cox & Kings rallied 4-6% while Shree Global, Glodyne Tech, Tulip Telecom, BGR Energy and Bharat Forge lost 3-7%.

European markets opened flat following listless trade in US and Asian markets, especially ahead of Federal Reserve's policy meeting today evening. Majority of economists expect another round of quantitative easing from the Fed.

The BSE Sensex was trading near seven-month high, supported by banks, oil & gas, capital goods, technology and two-wheeler stocks. The index rose 55.41 points to 18,055.44, a highest leve since February 24. Meanwhile, the NSE Nifty was inching closer to 5450 level, which moved up 13 points to 5,444.20.

Huge inflow of foreign money too continued to support the Indian equities as foreign institutional investors have been bought more than Rs 22,000 crore worth of equity shares since July while the benchmarks rallied 3% during the same period.

Traders have been adding long positions on hopes of another economic stimulus by the Federal Reserve today in its policy meeting. Tobias Levkovich, chief US equity strategist, Citi says he is expecting two things. "One, our economists are suggesting that the language will be extended from 2014 to the end of 2015 in terms of keeping interest rates low. Two, there will be some programme, given the weak jobs numbers last week," he elaborates.

The hopes of fuel price hike also led the support. Oil retailers BPCL, HPCL and IOC were up 1-2% ahead of a meeting of cabinet committee on political affairs today in the evening, say sources.

State-owned oil & gas producer ONGC, gas transportation services provider GAIL and two-wheeler major Hero Motocorp rallied 2% each.

Index heavyweight Reliance Industries, private sector lender ICICI Bank, engineering and construction major Larsen & Toubro, public sector lender State Bank of India and two-wheeler maker Bajaj Auto gained over 1%.

Drug producer Cipla topped the selling list with 2.6% losses. Housing finance company HDFC and telecom operator Bharti Airtel dropped over 1%. Shares of Sterlite Industries and Jindal Steel declined over 1% too.

Utility vehicle major Mahindra & Mahindra and commercial vehicle maker Tata Motors were down 0.6% each.

The 30-share BSE Sensex was trying to hold the 18,000 level amid choppy trade. The upmove in Reliance Industries, ICICI Bank, L&T and SBI counterbalanced the weakness in HDFC pack, metals stocks, HDFC, Tata Motors and ITC.

The BSE benchmark moved up 31 points to 18,030.99 and the NSE benchmark went up 3.65 points to 5,434.65.

Index heavyweight Reliance Industries and state-run oil & gas producer ONGC gained 1% and 1.4%, respectively.

Country's largest private sector lender ICICI Bank rose over 1% while its rival State Bank of India was up 0.4%.

Engineering conglomerate Larsen & Toubro climbed over 1%; state-owned power equipment manufacturer BHEL rebounded with 1.75% gains after falling in previous sessions on concerns over order book.

Software services exporters TCS and Wipro were up 0.6-1% while their rival Infosys was flat.

Two-wheeler major Hero Motocorp rallied 2% and its rival Bajaj Auto was up 1.4%. Commercial vehicle maker Tata Motors and utility vehicle major M&M fell 0.4% each.

Telecom operator Bharti Airtel topped the selling list with 1.8% losses. Housing finance company HDFC was down over 1%.

Cigarette major ITC and private sector lender HDFC Bank declined over 0.3%. Drug producer Cipla lost more than 1%.

Asian markets remained mixed ahead of Federal Reserve's policy meeting that will be come out with conclusion at 11:45 hours IST.

The BSE Sensex and NSE Nifty were volatile in early trade as the global markets moved into consolidation mode ahead of decision by the Federal Reserve in its policy meeting today.

The BSE benchmark rose 17.40 points to 18,014.73 and the NSE benchmark was up 0.45 point at 5,431.45.

The market had priced in the favourable outcome of German's Constitutional Court ruling on ESM and Dutch polls yesterday; now all eyes are on Federal Reserve's policy meeting that will be at 11:45 hours IST today. Economists feel the Fed in all likelihood should extend its forward rate guidance atleast to mid 2015.

Michael Gapen of Barclays expects the Fed to extend its rate guidance into 2015 and launch an open-ended asset purchase program. "We believe that the treasury market is not yet adequately pricing in the Fed's resolve to ease monetary policy," he added.

Back home, ICICI Bank, Wipro, Larsen & Toubro, ONGC, NTPC, ACC, Sun Pharma, Maruti Suzuki and Bajaj Auto were supporting the market.

Oil retailer BPCL gained 1% ahead of meeting of cabinet committee on political affairs today to decide on fuel price hike.

Sesa Goa tanked another 2% after the news that the Union Ministry of Environment and Forest (MoEF) has suspended environmental clearance of 93 Goa mines.

The weakness in JSPL, Sterlite Industries, IDFC, Bharti Airtel, Kotak Mahindra Bank, Reliance Industries and Infosys capped the upside.

The CNX Midcap Index rose 16 points to 7,312 as the positive market breadth.

In the second line shares, Godrej Properties was up 3% as the company sold its entire Phase 1 of its Gurgaon project on opening day.

Divestment candidates: Hindustan Copper and Oil India were up 1%. NALCO surged 3.5% and Neyveli Lignite gained 1.5%.

NIIT rose 2.5%. Panacea Biotec rallied 4%, continuing the run-up that added 66% gains in five sessions.

Government says the cabinet may consider FDI cap hike to 74% in cable TV services. Dish TV, Hathway Cable and Den Network moved up 1.5-3%.

Jet Airways, Kingfisher Airlines and SpiceJet went up 0.5-1.5%, rising for the second consecutive session.

Deccan Chronicle Holdings (DCHL) plunged 6% as The Economic Times reported that most bankers feel the company may not qualify for corporate debt restructuring (CDR). The Times of India said the Bombay HC has put a temporary halt on any sale of properties in Andhra Pradesh, TamilNadu by DCHL.