BSE Sensex gains 100 pts; banks, power, FMCG support
This is a strong time for equities, that are likely to be in the green post the Fed‘s decision on tapering its bond buying program (Quantitative Easing 3), says Richard Gibbs, global head, Macquarie Securities.
Live Market Commentary
02:55pm Market Update
The market extended gains with the Sensex rising more than 100 points amid choppy trade, aided by index heavyweights ITC and Reliance Industries that gained more than 1 percent.
The Sensex is up 108.96 points at 19912.99, and the Nifty is up 34.70 points at 5884.90.
Hindustan Unilever, State Bank of India and ICICI Bank advanced 1-2 percent. Private sector lender HDFC Bank rose 0.7 percent after recouping losses.
However, HDFC lost over 1 percent. BHEL shares lost the most in the Sensex, falling nearly 6 percent.
02:45pm Stocks in News
Polaris rallied 3 percent as a media report suggests that the software firm is in talks to sell services business to Japan's NEC Corporation. The deal with NEC could possibly value the services division at USD 400-450 million. This is higher than what Tech Mahindra was reportedly to have valued Polaris' services business, the report says.
Strides Arcolab gained 2.5 percent as Mylan believes that the warning letter to Agila will not have any material impact to its overall combined financial assumptions and it expects Agila and Mylan to cumulatively resolve the issue. Mylan expects to close the deal by Q4CY13 as per plans since it has got all the major approvals from regulatory bodies.
MCX shares plunged more than 7 percent as FMC sources told CNBC-TV18 that Financial Technologies group's representation is set to reduce to one on mcx board from four now. MCX will be run like a public institution where board controlled by institutional shareholders, say sources.
02:27pm Equity benchmarks are volatile as investors are on the sidelines ahead of conclusion from the two-day FOMC meeting ending tonight today.
The Sensex is up 59.65 points at 19863.68, and the Nifty is up 18.35 points at 5868.55. The market breadth is flat.
This is a strong time for equities, that are likely to be in the green post the Fed's decision on tapering its bond buying program (Quantitative Easing 3), says Richard Gibbs, global head, Macquarie Securities.
Speaking to CNBC-TV18, Gibbs says that he expects more clarity from the Fed and that a decision would be taken to strengthen the Fed’s forward guidance.
Also read: Finally, taper time is here
Power stocks are on buyers' radar as NTPC and Tata Power gained 3 percent each whereas state-run capital goods major BHEL tanked 4.5 percent.
PC Jeweller rose 5 percent after the government hiked import duty on gold jewellery from 10 percent to 15 percent. The hike in customs duty is aimed at containing the current account deficit.