BSE Sensex edges higher; defensive stocks lead

Reuters Market Eye - The BSE Sensex and Nifty edge higher, helped by continued foreign investment inflows in the past few weeks. FIIs bought 3.18 billion rupees worth of shares on Tuesday, totalling more than 72 billion rupees worth of buying over the previous nine sessions. The Sensex gains 0.34 percent, while the Nifty is up 0.32 percent.

Consumer goods makers and drug companies perceived defensive rose on caution ahead of the conclusion of the two-day U.S. Federal Reserve meeting later in the day that is expected to result in the start of a rollback of its stimulus.

ITC Ltd gains 0.7 percent, while Hindustan Unilever Ltd is up 1.4 percent.

 

Dr.Reddy's Laboratories Ltd up 1.4 percent following the U.S. drug regulator's approval for selling a generic version of Celgene Corp's anti-cancer drug Vidaza. DRL shares rose 3.6 percent on Tuesday.

Coal India Ltd is up 1 percent on expectations of positive announcements from its annual shareholders meeting later in the day, dealers said.

However, Goldman Sachs remains "underweight" on Indian shares in its Asia Pacific portfolio and maintains its Nifty target at 5,700, saying the macro outlook remains challenged, which coupled with tighter financial conditions, may lead to lower valuations.

(Reporting by Abhishek Vishnoi)