Market Live: Sensex, Nifty open flat after yesterday#39;s rally; Fed meet outcome eyed

10:11 am Rupee extends gains: The Indian rupee extended its gains against the US dollar at 65.43. The currency is up 1.9 percent this month and has gained 3.7 percent this year.

10:08 am Market Check: Equity benchmarks remained strong, but traded in a rangebound manner ahead of the US Federal Reserve’s policy meeting outcome. Investors are largely factoring in a rate hike in the US on the back of strong economic data. The Nifty touched 9100 in intraday trade on Wednesday.

The 30-share Sensex was up 39.66 points at 29482.29, while the Nifty was up 9.95 points at 9096.95. The market breadth was slightly narrow with 1,197 shares having advanced, 749 shares having declined, while 96 shares were unchanged.

IT stocks TCS and Infosys were the top losers on both the indices, while Adani Ports, Reliance, Idea Cellular and Bank of Baroda were the top gainers on both the indices.

9:57 am Market Update: Benchmark indices were moderately positive amid consolidation ahead of Federal Reserve decision tonight.

The 30-share BSE Sensex was up 32.94 points at 29,475.57 and the 50-share NSE Nifty gained 9.20 points at 9,096.20.

9:50 am Asia update: Asian equities were a sea of red, following losses in US stocks as traders awaited a rates decision from the US Federal Reserve.

In Japan, the Nikkei 225 was down 0.2 percent, as the yen strengthened against the dollar. A stronger yen is generally seen as a negative for Japanese stocks.

9:39 am BoAML on Sun Pharma: Bank of America Merrill Lynch also says Mohali resolution is sentimentally positive and this resolution is in-line with earlier expectations.

Better synergy benefits now are likely on account of Ranbaxy merger and it may be used for site transfers for important products, it adds.

The brokerage house has maintained buy rating on the stock with a target price at Rs 750.

9:29 am FII View: While a rate hike by the US Federal Reserve is already factored in, markets will keenly watch the Fed’s commentary in its ongoing meeting. The Fed had indicated for three hikes this year in last December.

Speaking to CNBC-TV18, Richard Harris, Chief Executive at Port Shelter Management said that markets are discounting 2-3 hikes already. The Fed is expecting more stimulus for the economy.

With US growth coming back, 2017 is expected to be great for other economies also, said James Glassman, Senior Economist at JP Morgan. “India and China are likely to grow at 6.5-7 percent this year,” he said.

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9:15 am Market Check: Equity benchmarks started off day on a flat note after rally in previous session and ahead of outcome of two-day Federal Reserve policy meeting tonight.

The 30-share BSE Sensex was down 3.76 points at 29,438.87 and the 50-share NSE Nifty fell 3.75 points to 9,083.25. About two shares advanced for every share falling on the BSE.

Reliance Industries, Cipla, Sun Pharma, Tata Motors, Wipro, Hindalco and Aurobindo Pharma were early gainers while Bharti Airtel, Larsen & Toubro, TCS, ICICI Bank, Asian Paints, HCL Technologies, Asian Paints and Bosch were early losers.

The Indian rupee opened marginally higher at 65.76 per dollar against previous day’s closing of 65.82.

Yesterday the rupee closed at 16-month high at 66.82, which was last seen in November, 2015.

Pramit Brahmbhatt of Veracity said, “The rupee has strong resistance at 65.80 levels and may trade sideways for the day. We expect the USD-INR pair to trade in a range of 65.80-66.30/dollar today.”

The dollar was on tenterhooks in early trade as investors waited anxiously to see what clues the US Federal Reserve would soon reveal on its monetary policy outlook.

Meanwhile, sterling nursed its losses after tumbling to an eight-week low in the previous session, amid worries about a prolonged and painful process of the UK’s exit from the European Union.