 "Markets may open higher on global cues; FOMC outcome eyed")
Markets are likely to open higher and remain rangebound thereafter as traders are likely to remain cautious ahead of the outcome of the US Federal Reserve's two-day meet which ends later today. At 8:30am, the early indicator SGX Nifty was up 50 points at 7,750.
On Tuesday, markets reversed early losses in the second half of the trading session to end higher after firm global crude oil prices led to a rally in oil stocks, while FMCG shares gained despite rise in consumer price inflation.
The S&P BSE Sensex surged 170.09 points to close at 25,320.44 and the Nifty50 surged 50.85 points to end at 7,700.90. In the broader markets, BSE Midcap and Smallcap indices were up 0.5%-1%.
"Investors seem to have adopted a cautious stance ahead of the Federal Reserve meeting this week. A 25 basis point rate hike by the US Federal Reserve has largely been factored in by the markets. Investor focus has now shifted to the likely pace and quantum of further hikes once this first move is done," said Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund in a note.
"Investors seem to have adopted a cautious stance ahead of the Federal Reserve meeting this week. A 25 basis point rate hike by the US Federal Reserve has largely been factored in by the markets. Investor focus has now shifted to the likely pace and quantum of further hikes once this first move is done," said Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund in a note.
GLOBAL MARKETS
Asian markets rallied on Wednesday tracking overnight gains on Wall Street ahead of the US Federal Reserve which is widely expected to raise interest rates at its two-day meet which ends later today. Japanese shares were the top gainers on the back of a strong dollar. The benchmark Nikkei was up 2% while Hang Seng also gained 2%. Shanghai Composite was up 0.3% and Straits Times was up 0.6%.
US stock markets ended nearly 1% higher on Tuesday after stablising global crude oil prices led to a rally in energy shares in addition to gains in financials. The Dow Jones industrial average ended up 0.9% at 17,525 while the broader S&P 500 ended up 1% at 2,043 and the tech-laden Nasdaq ended up 0.9% at 4,995.
STOCKS IN FOCUS
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Sugar stocks are likely to be in action after a bill was passed by the Lok Sabha on Tuesday to hike the sugar cess ceiling from Rs 25 to Rs 200 per quintal.
Auto stocks are likely to remain mixed with several brokerages releasing their views post the proposed ban on diesel vehicles by the NGT in Delhi. According to some brokerages, Maruti is unlikely to be impacted by the proposed ban while M&M would be impacted as most of its vehicles are diesel-based.
Arcotech may gain after the company announced it has received an order from INDIA GOVERNMENT MINT (IGM), Mumbai for supply of 6000 MT Nickel Brass Coils worth Rs. 268.30 crores with an option of another 25% order making it an aggregate order of Rs. 335.37 crores.
Tara Jewels may extend gains on the back of block deals in the counter on the BSE and NSE on Tuesday
GIC Housing may gain after Reliance Capital Trustee company acquired 500,000 shares of the company on Tuesday.
LIC Housing will see some action after the company informed that it is buying Nomura's 19.3 per cent stake in LIC Nomura Mutual Fund. The deal has been pegged at Rs 27.36 crore.
There will be stock specific activity depending on the advance tax paid after collection from top 45 companies in Mumbai rose both at quarterly level as well as in the first nine months of the current financial year, according to Income-Tax officials.