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Benchmark indices erased early gains in afternoon deals but managed to stay in the green zone,. Weakness in real estate capital goods and metal shares has capped the upside.
At 13:10 pm, the 30-share BSE Sensex was up 53 points at 22,520 and the 50-share Nifty was up 15 points to 6,730.
Ranak Merchant, Technical Analyst - Strategies, Sushil Finance, says, ‘On technical parameters the next breakout point for Benchmark Nifty lies above 6845 levels only above which targets would be placed at 7050. Crucial support (bear turning point) seen below 6690 levels.”
The partially convertible rupee slipped to Rs 60.38 levels from it's day's high of 60.2650, a level last seen on April 17, as a large state-owned bank was spotted selling dollars on behalf of a foreign client.
Globally investors are cautious before the outcome of the Federal Reserve's policy meeting later in the session as well as key US jobs data on Friday, and against a backdrop of continuing tension in Ukraine.
Japanese shares pared much of their early gains in choppy trade on Wednesday after the Bank of Japan affirmed its existing policies, disappointing some speculators who had bet on the outside chance of a surprise easing.
The Nikkei ended up 0.1% at 14,304.11, after rising 0.9% earlier on the back of positive earnings guidance. It fell 3.5% this month, the fourth consecutive month of declines.
After the cash market closed, Nikkei futures fell 0.4% as the Bank of Japan maintained its bullish economic forecast, dampening speculation of a near-term monetary easing.
The broader Topix ended 0.2% up at 1,162.44, with trading volume exceeding the average of the past 20 sessions. The new JPX-Nikkei Index 400 rose 0.2% to 10,588.03.
Back home, among BSE indices that track industrial sectors, BSE Realty index has declined by over 3% followed by counters like Metal, Capital Goods, Power, Consumer Durables and IT, all falling down between 0.1-1%. On the gaining side, BSE Oil & Gas and Bankex have gained by nearly 1%.The main gainers on the Sensex at this hour include GAIL, M&M, HDFC, Dr Reddy’s Labs and SBI.
On the losing side, Hindalco, Sesa Sterlite, Tata Power, Tata Steel and Bajaj Auto have fallen between 2-3%.
Shares of Alstom Group companies – Alstom India Limited and Alstom T&D India have rallied up to 18% after parent company Alstom announced that it has received a binding offer from General Electric (GE) to acquire its energy business.
Alstom India has surged 18% to Rs 481 and Alstom T&D India has spiked up by 12% to Rs 297 on the Bombay Stock Exchange.
The market breadth in BSE remains negative with 1,317 shares declining and 1,162 shares advancing.
