Market Live: Nifty hovers around 9100 as investors await Fed rate decision

12:11 pm Market check: After starting the day on a tepid note, the market witnessed consolidation as investors awaited the outcome of US Federal Reserve’s policy meeting. Indices held on to key levels, but turned red after posting a mega rally on Tuesday.

The 30-share Sensex was down 34.43 points at 29408.20, while the Nifty was down 4.05 points at 9082.95. The market breadth was narrow after 1,314 shares advanced, 1,127 shares declined, while 161 shares remained unchanged.

Infosys and TCS were top losers on the indices, while BHEL, Reliance, Idea Cellular and Bank of Baroda were among the top gainers.

11:42 am Rupee gains further: Driven by its 16-month peak achieved yesterday, the rupee today acquired more heft as it rose by another 38 paise to 65.44 on sustained offloading of the US dollar amid heavy foreign capital inflows.

Financial markets were enthused by the BJP’s emphatic UP victory amid positive macro data while unabated foreign inflows added it up.

The rupee resumed higher at 65.76 as against yesterday’s closing of 65.82 here today. It advanced further to 65.41 before trading at 65.44 at 1020 hours.

The domestic currency hovered in a range of 65.76 and 65.41 during morning deals.

11:25 am Interview: VIP has seen a 54 percent uptick so far this year despite demonetisation that was implemented in November last year.

Demonetisation did not have any adverse impact on the company. Rather, VIP benefited from the shift to organized sector, said the company’s chairman Dilip G Piramal.

Most of the retail chains are now moving towards the organized sector.

VIP will further benefit from high growth in the travel industry. Growth is likely to be in range of 15 percent in the coming year, according to Piramal.

11:05 am Market Check: Equity benchmarks continued to be lacklustre in morning as investors awaited Federal Reserve rate decision due tonight, and digested BJP’s landslide victory in Uttar Pradesh.

The 30-share BSE Sensex was up 9.67 points at 29,452.30 and the 50-share NSE Nifty rose 6.75 points to 9,093.75 while the broader markets outperformed benchmarks

The BSE Midcap and Smallcap indices gained 0.8 percent each as about 1349 shares advanced against 936 declining shares on the BSE.

Idea Cellular soared over 12 percent intraday after reports stated that US-based ATC was close to completing a buyout of the firm’s tower business.

Infosys and TCS fell 1.7 percent after rupee hit 16-month high of 65.52 against the US dollar, up 29 paise from previous close.

11:00 am Idea gains 12%: Idea Cellular soared over 12 percent intraday after reports stated that ATC was close to completing a buyout of the firm’s tower business.

ATC’s global management is in the country currently to finalise the transaction details, sources informed CNBC-TV18. ATC and Idea are keen on closing the deal before the merger with Vodafone is finalized.

As part of the deal structure, ATC may merge Idea’s tower business with its India portfolio as well as the acquired business of Viom. Sources also told the channel that Idea may take the role of an anchor tenant after ATC’s deal closure.

10:45 am Buzzing stocks: Shares of pharmaceutical majors Biocon and Alkem Labs surged over 3 percent intraday on Wednesday on approvals by the US drug regulator.

Biocon surged after Mylan received a nod from the US Food and Drug Administration (FDA) for Exemestane tablets, which are used to treat breast cancer.

Meanwhile, Alkem Labs received the nod from the regulator for Lidocaine ointment, which is to treat ventricular tachycardia.

10:29 am CIL arms’ valuations slashed: Three subsidiaries of the government-run Coal India have slashed their valuation by nearly 75 percent over values declared earlier this month. According to a news report in the Economic Times, valuations declared earlier did not reflect the true numbers of the subsidiaries.

A Coal India executive said that earlier valuations were based on a calculation employed for valuing international companies and therefore weren’t valid for India peers.

The three subsidiaries include Northern Coalfield, Mahanadi Coalfields and South Eastern Coalfields.

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.