)
Benchmark indices have erased early losses and are trading in the positive territory reacting to the US Federal Reserve’s decision to keep interest rates near zero for a "considerable time despite weak Asian cues.
The US Federal Reserve on Wednesday renewed a pledge to keep interest rates near zero for a "considerable time" and repeated concerns over slack in the labour market, standing firm against calls to overhaul its policy statement.
Many economists and traders had expected the central bank to alter the rate guidance it has provided since March, given generally improving data on the economy's performance.
But the Fed repeated its assurance that rates would stay ultra-low for a "considerable time" after a bond-buying stimulus program wraps up. In a statement after a two-day meeting, it announced a further $10-billion reduction in its monthly purchases, leaving the programme on course to be shuttered next month.
The policy-setting Federal Open Market Committee (FOMC) also repeated its assessment that a "significant" amount of slack remains in the US labour market, a further sign it is no rush to raise benchmark borrowing costs.
By 10 AM, the Sensex is up by 213 points at 26,845 mark and the Nifty has gained by 67 points at 8,042 levels.
BSE Midcap and Smallcap indices are trading in line with the large counterparts and have surged over 1% each.
The market breadth on the BSE is positive with 1,540 shares advancing and 471 shares declining.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Wednesday, 17 September 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 136.08 crore on that day.
Global markets:
US stocks edged higher in volatile trading on Wednesday after the US Federal Reserve renewed its pledge to keep interest rates near zero for a "considerable time" and repeated concerns over slack in the labor market, standing firm against calls to overhaul its policy statement.
Interest rate projections, however, show Fed officials expect rate hikes, when they come, will do so at a quicker pace than previously forecast. The US dollar jumped against the euro and yen after the statement and data release.
Shares in financials, up 0.4 percent, extended gains to end the session as one of the better performing S&P sectors took the lead on the S&P 500.
Japanese shares jumped on Thursday after the dollar vaulted to a six-year peak on the yen as the Federal Reserve's outlook for rising rates underlined the diverging path between the United states and the rest of the rich world.
The euro skidded to a 14-month trough while gold hit an eight-month low as the dollar swept higher across the board, a move that many investors have been itching to wager on all year.
Indeed, the hawkish interpretation in currencies came despite the Fed maintaining language suggesting that rate hikes would not happen for a "considerable time."
Sectors & Stocks:
On the sectoral front, all indices are trading in the positive territory. BSE Realty index is the top gainer followed by Consumer Durables, Metal, Capital Goods and Oil & Gas indices up over 1%.
IT major Infosys which surged yesterday on the back of fresh orders and after China injected $81 billion into major banks is down by 1.65 and is the top loser of this hour.
HUL and GAIL are trading with marginal losses.
HUL and GAIL are trading with marginal losses.
Financial shares are trading with marginal gains. Axis Bank, ICICI Bank, SBI and HDFC twins have advances 0.2%. Annual credit growth in the banking system fell to 9.68 per cent, data released by the Reserve Bank of India (RBI) showed. This was the first time since October 2009 (9.01 per cent) that growth in bank credit fell below 10 per cent.
In the auto space, barring M&M all other stocks are trading firm with Maruti Suzuki, Tata Motors, Bajaj Auto and Hero Motocorp have surged between 0.5-1.5%. Hero Motocorp has extended its yesterday's rally and is up 1.5% as the company announced it would set up an ultra-modern manufacturing facility with a capacity to produce 1.8 million units annually in Andhra Pradesh to meet the growing demand for its two-wheelers.
RIL is up 0.4% in the early trades. In a bid to grab the opportunity created by diesel reaching market-parity price, Reliance Industries (RIL) has set the ball rolling on reopening its fuel retail outlets, after a gap of six years, and the company is in discussions with its dealers for a higher commission.
Drug maker Sun Pharma is the top gaining stock of this hour up by nearly 2%. Sun Pharmaceutical Industries announced that it has entered into an exclusive worldwide licensing agreement with the US-based Merck & Co (known as MSD outside the US and Canada) for the latter's investigational therapeutic antibody candidate tildrakizumab, used for treating chronic plaque psoriasis, a skin ailment. The drug is currently in the Phase 3 registration trials. Following the tandem, Cipla and Dr Reddy’s lab are up 0.5%.
Fresh buying is evident in the metal pack. Coal India, Hindalco and Tata Steel have gained between 0.2-1.5%.
In the Capital goods segment, BHEL nad Engineering conglomerate L&T have climbed 0.7%.
In the Capital goods segment, BHEL nad Engineering conglomerate L&T have climbed 0.7%.
TCS, Wipro and ITC are some of the notable names in green among others.
