 "Markets trim early gains, financials weigh")
Benchmark indices have trimmed gains and are trading marginally positive amid volatility.
By 13:25 PM, the Sensex was higher by 40 points at 20,702 mark and the Nifty gained by 13 points at 6,167 levels.
According to Devangshu Datta,Technical Analyst and market expert, “Weakening trend visible now. A fall below 6150 Nifty futures could mean a drop till 6100. Upside, 6225 (futures) is a key resistance. Keep wide stop losses about 2.5 or 3x of normal stops if you are in financial counters/ Bank Nifty. Directional trend difficult to call, market generally expects harsh measures so it could see a relief rally if 1) Fed doesn’t taper in Jan and 2) RBI don’t hike Repo more than 25 basis pts.”
Investors are on tenterhooks over when the Fed will start to reduce its $85 billion-a-month bond-buying programme, a major driver of global risk assets in recent years.
A majority of economists polled by Reuters expect the taper to happen in March, but a recent run of upbeat economic data has steadily shortened the odds on an announcement at this week's two-day meeting concluding on Wednesday -- or in January.
The rupee was trading weak in afternoon trades due to fear of US Fed's tapering and dollar demand from importers.
At 12:15 pm the rupee was trading at Rs 61.97 compared with previous close of Rs 61.73 per dollar.
Foreign institutional investors (FIIs) bought shares worth a net Rs 159.55 crore on Monday, 16 December 2013, as per provisional data from the stock exchanges.
The Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
On the sectoral front, BSE Healthcare, Capital Goods, Realty, Oil and Gas, Metal, Consumer Durables, Auto and IT indices have gained 1%. However, BSE Bankex has declined by 1%.
The main gainers on the Sensex at this hour include Bharti Airtel, Cipla, TCS, Sun Pharma and Sesa Sterlite.
On the losing side, HDFC Bank, Coal India, HDFC, NTPC and Bajaj Auto have fallen between 1-4%.
HDFC Bank has dropped after the Reserve Bank of India (RBI) barred foreign institutional investors (FIIs) from purchasing shares in the bank after their shareholding reached the maximum prescribed limit.
Among other shares, Jet Airways stage a recovery today and were up 3% at Rs 270 on value buying at lower levels after correcting from Rs 300 levels in the past few sessions.
Shares of IRB Infrastructure were up nearly 3% at Rs 91 after the company said it was selected as a preferred bid for a section of National Highway - 211.
The market breadth in BSE remains positive with 1,192 shares advancing and 1,029 shares declining.
By 13:25 PM, the Sensex was higher by 40 points at 20,702 mark and the Nifty gained by 13 points at 6,167 levels.
According to Devangshu Datta,Technical Analyst and market expert, “Weakening trend visible now. A fall below 6150 Nifty futures could mean a drop till 6100. Upside, 6225 (futures) is a key resistance. Keep wide stop losses about 2.5 or 3x of normal stops if you are in financial counters/ Bank Nifty. Directional trend difficult to call, market generally expects harsh measures so it could see a relief rally if 1) Fed doesn’t taper in Jan and 2) RBI don’t hike Repo more than 25 basis pts.”
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Asian shares pushed higher on Tuesday on the back of rising US manufacturing output and a jump in euro zone business activity, ahead of a momentous US Federal Reserve policy decision later this week.
Investors are on tenterhooks over when the Fed will start to reduce its $85 billion-a-month bond-buying programme, a major driver of global risk assets in recent years.
A majority of economists polled by Reuters expect the taper to happen in March, but a recent run of upbeat economic data has steadily shortened the odds on an announcement at this week's two-day meeting concluding on Wednesday -- or in January.
The rupee was trading weak in afternoon trades due to fear of US Fed's tapering and dollar demand from importers.
At 12:15 pm the rupee was trading at Rs 61.97 compared with previous close of Rs 61.73 per dollar.
Foreign institutional investors (FIIs) bought shares worth a net Rs 159.55 crore on Monday, 16 December 2013, as per provisional data from the stock exchanges.
The Reserve Bank of India (RBI) is widely expected to increase in main lending rate viz. the repo rate by 25 basis points to 8% from current 7.75% after a mid-quarter monetary policy review tomorrow, 18 December 2013, to rein in inflation after recent data showed that both consumer prices and wholesale prices accelerated last month.
On the sectoral front, BSE Healthcare, Capital Goods, Realty, Oil and Gas, Metal, Consumer Durables, Auto and IT indices have gained 1%. However, BSE Bankex has declined by 1%.
The main gainers on the Sensex at this hour include Bharti Airtel, Cipla, TCS, Sun Pharma and Sesa Sterlite.
On the losing side, HDFC Bank, Coal India, HDFC, NTPC and Bajaj Auto have fallen between 1-4%.
HDFC Bank has dropped after the Reserve Bank of India (RBI) barred foreign institutional investors (FIIs) from purchasing shares in the bank after their shareholding reached the maximum prescribed limit.
Among other shares, Jet Airways stage a recovery today and were up 3% at Rs 270 on value buying at lower levels after correcting from Rs 300 levels in the past few sessions.
Shares of IRB Infrastructure were up nearly 3% at Rs 91 after the company said it was selected as a preferred bid for a section of National Highway - 211.
The market breadth in BSE remains positive with 1,192 shares advancing and 1,029 shares declining.