 "Markets tread water ahead of FOMC meeting")
Markets traded range-bound with a negative bias this Tuesday on concerns over slowing economic growth amid caution ahead of the US Federal Open Market Committee meeting starting today.
At 10:30AM, the 30-share Sensex fell 70 points at 19,255 and the 50-share Nifty declined 25 points at 5,824 levels.
Banking shares dropped after the Reserve Bank of India on Monday decided to halt its rate easing cycle, following the rupee's sharp fall since May and inflationary concerns.
“While the Fed Chairman may attempt to give more clarity about tapering off QE3, it will be difficult to reduce market uncertainty because there does not seem to be a consensus in the FOMC on an explicit criterion for stopping or tapering QE3,” a note from Rabobank Financial Markets Research showed.
Asian stocks traded mixed amid looming uncertainty over the Federal Reserve’s bond-buying plans.
Globally, the Nikkei fell 0.02% to 13,030, Singapore Straits Times rose 1% to 3,216, Hong Kong’s Hang Seng declined 0.6% to 21,090 while China’s Shanghai Composite index was down 0.3% at 2,150.
Domestically, the rupee today plunged by 56 paise, or almost 1%, to trade at 58.43 against the dollar in early trade at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas. The currency traded at 58.38, falling 0.5 per cent against the US dollar.
The key sectoral gainers included counters such as IT, realty, healthcare while metal, consumer durables, banks, automobile indices dropped on the BSE.
The gainers included counters such as Bajaj Auto rising 1%, Bharti Airtel gaining 0.6%, Hero MotoCorp rose 0.5%, Wipro and Infosys rose 0.5% on the BSE.
The laggards included names like GAIL and Hindalco Industries declined 1%, Tata Power fell 0.4%, ICICI Bank and SBI dropped 0.5%, Tata Motors shed nearly 2% on the BSE.
The key notable movers included counters such as VA Tech Wabag that has gained 3.3% at Rs 455 after the company in a joint venture with Pratibha Industries has won an Rs 262 crore order from Melamchi Water Supply Development Board, Nepal.
Shares of telecom services provider are trading higher by up to 2% in otherwise subdued market after the Telecom Regulatory Authority of India (TRAI) announced reduction in the national mobile phone roaming charges, but said there will be no free national roaming as of now.
The broader markets traded positively with mid-caps and small-caps rising 0.3 per cent each on the BSE.
The market breadth was positive. Out of 1,562 stocks traded so far, 798 stocks advanced while 684 declined on the BSE.
At 10:30AM, the 30-share Sensex fell 70 points at 19,255 and the 50-share Nifty declined 25 points at 5,824 levels.
Banking shares dropped after the Reserve Bank of India on Monday decided to halt its rate easing cycle, following the rupee's sharp fall since May and inflationary concerns.
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Meanwhile, the Federal Open Market Committee begins its two-day policy meeting today, almost a month after Fed Chairman Ben S. Bernanke said asset purchases could be scaled back should the U.S. employment outlook show “sustainable improvement.”
“While the Fed Chairman may attempt to give more clarity about tapering off QE3, it will be difficult to reduce market uncertainty because there does not seem to be a consensus in the FOMC on an explicit criterion for stopping or tapering QE3,” a note from Rabobank Financial Markets Research showed.
Asian stocks traded mixed amid looming uncertainty over the Federal Reserve’s bond-buying plans.
Globally, the Nikkei fell 0.02% to 13,030, Singapore Straits Times rose 1% to 3,216, Hong Kong’s Hang Seng declined 0.6% to 21,090 while China’s Shanghai Composite index was down 0.3% at 2,150.
Domestically, the rupee today plunged by 56 paise, or almost 1%, to trade at 58.43 against the dollar in early trade at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas. The currency traded at 58.38, falling 0.5 per cent against the US dollar.
The key sectoral gainers included counters such as IT, realty, healthcare while metal, consumer durables, banks, automobile indices dropped on the BSE.
The gainers included counters such as Bajaj Auto rising 1%, Bharti Airtel gaining 0.6%, Hero MotoCorp rose 0.5%, Wipro and Infosys rose 0.5% on the BSE.
The laggards included names like GAIL and Hindalco Industries declined 1%, Tata Power fell 0.4%, ICICI Bank and SBI dropped 0.5%, Tata Motors shed nearly 2% on the BSE.
The key notable movers included counters such as VA Tech Wabag that has gained 3.3% at Rs 455 after the company in a joint venture with Pratibha Industries has won an Rs 262 crore order from Melamchi Water Supply Development Board, Nepal.
Shares of telecom services provider are trading higher by up to 2% in otherwise subdued market after the Telecom Regulatory Authority of India (TRAI) announced reduction in the national mobile phone roaming charges, but said there will be no free national roaming as of now.
The broader markets traded positively with mid-caps and small-caps rising 0.3 per cent each on the BSE.
The market breadth was positive. Out of 1,562 stocks traded so far, 798 stocks advanced while 684 declined on the BSE.