 "Markets open flat with negative bias ahead of Fed meet")
Markets have extended losses and are trading lower weighed down by capital goods, metal, banks and auto shares.
By 11:25, the Sensex was lower by 140 points at 25,716 and the Nifty slipped 47 points at 7,825.
The top losers from the Sensex pack are Tata Steel, Hindalco, Vedanta, L&T and Tata Motors, all slumping between 2-3%.
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Updated at 9:30
Markets have started the session on flat note with negative bias tracking mixed cues. Investors will maintain cautious stance ahead of the US FOMC meet due later during the week.
However, investors might witness a positive trend in the markets on the back of favourable macro-economic numbers.
Inflation based on the consumer price index (CPI) declined to a nine-month low of 3.66% in August from 3.69% in July, but the rate of food price rise went up to 2.20% from 2.15%.
By 9:25, the Sensex was lower by 40 points at 25,816 and the Nifty slipped 5 points at 7,867.
The broader markets are however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-0.4%.
Markets breadth is positive on the BSE with 716 shares advancing and 376 shares declining.
According to Angel Broking's report, "The trend deciding level for the day is 25,672 / 7,805 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 25,814 – 26,018 / 7, 849 – 7,910 levels. However, if NIFTY trades below 25,672 / 7,805 levels for the first half-an-hour of trade then it may correct towards 25,468 – 25,327 / 7,745 – 7,700 levels."
On Monday, markets snapped two straight session of losses as the buying activity picked up on the back of favourable macroecomic numbers with the industrial production expanding at a better-than-estimated 4.2 % in July and the wholesale price index-based inflation plunging to a historic low of (-)4.95% in August creating room for RBI to slash key rates in the next monetary policy.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 58.75 crore yesterday, as per provisional data released by the stock exchanges.
In the currency front, the rupee fell 5 paise to 66.38 against the dollar in early trade due to fresh dollar demand from importers.
GLOBAL MARKETS
Asian shares struggled on Tuesday as caution reigned ahead of this week's US Federal Reserve decision on interest rates, while the yen edged higher after the Bank of Japan refrained from any new policy steps.
MSCI's broadest index of Asia-Pacific shares outside Japan erased early gains and fell 0.5%, taking its cue from slumping Chinese shares. The Shanghai Composite Index was down 2.4% and the CSI300 index was 2.6% lower.
Japan's Nikkei stock index was up 0.2% in early afternoon trading, sharply paring its morning gains. It was up 1.3% in the morning session, ahead of the conclusion of Bank of Japan's two-day policy meeting at which the central bank held policy steady as many had expected.
But the BOJ also warned that slowing demand in emerging markets was taking a toll on Japan's exports and output.
SECTORS & STOCKS
Sectors like Banks and Power are trading marginally lower. However, BSE Realty index has surged by almost 1% followed by counters like FMCG, Healthcare, Capital Goods, Metal and Oil & Gas, all rising marginally.
The top gainers from the Sensex pack are Maruti Suzuki, Sun Pharma, Tata Steel, L&T and Axis Bank, all surging between 0.3-2%.
Reserve Bank has allowed foreign investors to invest up to 40% of the paid up capital in Maruti Suzuki under the Portfolio Investment Scheme.
Sun Pharma is planning to acquire US Based InSite Vision Inc according to media reports.
The Board of Approval (BoA) under the Union Commerce Ministry has extended the validity of the approval given for setting up of a Special Economic Zone (SEZ) by Tata Steel at Gopalpur in South Odisha up to 17th December, 2015.
On the losing side, Vedanta, Hero Moto, NTPC, M&M and GAIL are down 0.7-1.2%.
With Reuters input
