 "Markets remain rangebound post Fed decision")
Markets came off their day's highs and continued to trade in a narrow range oscillating between positive and negative terrain with the benchmark Nifty50 hovering around the 7,750 mark.
Healthcare and metal shares were in demand while losses in energy shares following a slump in the crude oil prices capped upside.
Healthcare and metal shares were in demand while losses in energy shares following a slump in the crude oil prices capped upside.
At 12:50 pm, the S&P BSE Sensex was down by 27 points at 25,467 and the Nifty50 has slipped 5 points to quote at 7,746.
“In the crucial US Federal Reserve meeting of 16th December, the Fed raised the benchmark rate by 25 basis points. This was as per market expectations and long awaited - hence not a surprise. The Fed is confident of US growth in the next year and with signs of stabililty in Europe, the world looks like it is in a steady recovery mode. Future hikes are likely to be gradual and data-dependent and unlikely to surprise the markets. Thus the Chinese economy and the behavior of the Yuan will be relatively important factors in the short-term,” said Mihir Vora- Director and Chief Investment Officer, Max Life Insurance.
“For the coming year, we expect India to continue to continue to benefit by low commodity prices and improve the Government finances further while also keeping inflation in control. Indian investors should now re-focus on stock and sector-specific fundamentals and keep a tab on Government's execution on the various initiatives on public-sector and Government investments and other enabling initiatives to help private sector capital expenditure as well as participation in infrastructure projects,” he added.
On the global front, Asian equities marched upward following the US Federal Reserve decision. The US Fed Reserve increased benchmark rates by 25 basis points and maintained a dovish commentary on future rate hikes.
With the ambiguity around the Fed interest rate hike out of the path, markets participants are likely to watch out for the developments in the ongoing winter session of the Parliament particularly the passage of the crucial GST bill.
STOCKS IN FOCUS
Pharmaceutical shares are trading higher in today’s trade with Glenmark Pharma, Sun Pharma, Dr Reddy's Lab, Aurobindo Pharma, Piramal Enterprises, Cipla, Lupin , Divi's Laboratories, Strides Shasun, IPCA Laboratories, Wockhardt, Natco Pharma and Cadila Healthcare gaining between 0.5%-4%.
Another sector that is trading comfortably in the green is the metal pack with JSW Steel, Hindalco, Tata Steel, SAIL and Vedanta gaining between 1%-3%.
Gas-based stocks are advancing in a flat market after the Supreme Court ruled that all Delhi taxis be converted to CNG by 31 March. Gail India up 0.2%, Gujarat Gas up 0.4% and Indraprastha Gas trading flat.
Among individual names, SBI surged over 1% after the bank said in a notice to BSE that its board will meet on 21 December to discuss the modalities of raising equity capital, either in the domestic or overseas markets or both, and also for mopping up additional non-equity capital by way of bonds denominated either in dollars or rupees.
NTPC advanced 1% after the Ministry of Environment and Forests gave 'green signal' to a power project being set up by the company in Telangana while it has deferred another project of the PSU in Andhra Pradesh.
On the flip side, M&M has extended the losses after the Supreme Court order on ban on registration of new diesel vehicles in Delhi until 31 March 2016. The stock has dropped 1.4%
Meanwhile, ONGC has shed 2% after a one-man committee was constituted to look into acts of omission and commission and recommend compensation to ONGC whose natural gas from the Bay of Bengal block had flowed to adjoining fields of Reliance Industries Ltd. RIL is trading 0.7% higher.
