)
Benchmark indices are trading in a tight range with negative bias weighed down by auto and financial shares. However, the downside has been limited led by buying in index heavyweights L&T and RIL.
Investors have turned cautious ahead of the outcome of the US Federal Reserve's stance on interest rates at its two-day policy meet which ends today.
By 10:35AM, the 30-share Sensex was lower by 119 points at 28,618 and the Nifty dipped 35 points at 8,689.
However, the broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-0.4%. Market breadth is positive with 978 gainers and 859 losers on the BSE.
"Minor profit booking can be expected in the second half. For the Sensex resistance is seen at 28802 above 28978, 29036 and more while support is at 28677 below 28584 and 28573. For the Nifty resistance is seen at 8737 above 8772 and more and support is at 8700 below 8671," Geojit BNP Paribas Financial Services said in a technical note.
Further, IMF chief Christine Lagarde warned of a repeat of high market volatility and capital outflows when US Fed hikes rates next time and asked India and other emerging markets to be prepared for such an eventuality.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 265.52 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 243.69 crore yesterday, as per provisional data.
ASIAN MARKETS
Asian stocks were mixed and the dollar marked time on Wednesday, with markets waiting for the US Federal Reserve's policy statement due later in the session for clues to when the Fed will hike interest rates.
Indonesian, Singaporean and Japanese shares fell 0.1%, while Australian stocks dropped 0.5%.
But Chinese shares, sitting atop multi-year highs reached on hopes of more monetary stimulus, added to gains. The Shanghai Composite Index reached its highest since May 2008, while Hong Kong's Hang Seng and South Korea's Kospi also gained. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%.
LEADERS & LAGGARDS
BSE Auto, Consumer Durables, FMCG, Healthcare, IT and Power indices are trading marginally lower. However, sectors like Metal, Capital Goods and Oil & Gas are witnessing some buying demand.
Sesa Sterlite is the top Sensex gainers, up over 2% after mining operations would resume in Goa after the Centre on Tuesday revoked its earlier order suspending all environmental clearances of mines.
Other notable gainers are Hero Moto, SBI, RIL, L&T, GAIL and Tata Steel, all gaining between 0.3-1%.
Jindal Steel has rebounded in trades today after witnessing steel fall yesterday. The company in a statement said it has not received any communication from the government with regard to re-examination of of Gare Palma IV/2 & IV/3 or Tara coal blocks which have been won by its subsidiary Jindal Power Limited (JPL). JSPL is up over 2%.
On the losing side, Tata Motors is the top Sensex loser, down over 1%. Tata Motors global wholesales in February 2015 including Jaguar Land Rover rose 5% over February.
NTPC, ONGC, M&M, TCS and HDFC are other notable loser.
Among other shares, Diamond Power Infrastructure has surged 18% to Rs 63.95, extending its past two days rally on the National Stock Exchange (NSE) after the company received orders worth of Rs 332 crore from Assam and Nagaland governments.
Inox Wind IPO in the price band of Rs 315-325 per share with a discount of Rs 15 a share for retail investors opens today. It peer Suzlon Energy could see some action as data on subscriptions to the IPO are released.
