The BSE Sensex was trading near seven-month high, supported by banks, oil & gas, capital goods, technology and two-wheeler stocks. The index rose 55.41 points to 18,055.44, a highest leve since February 24. Meanwhile, the NSE Nifty was inching closer to 5450 level, which moved up 13 points to 5,444.20.
Huge inflow of foreign money too continued to support the Indian equities as foreign institutional investors have been bought more than Rs 22,000 crore worth of equity shares since July while the benchmarks rallied 3% during the same period.
Traders have been adding long positions on hopes of another economic stimulus by the Federal Reserve today in its policy meeting. Tobias Levkovich, chief US equity strategist, Citi says he is expecting two things. "One, our economists are suggesting that the language will be extended from 2014 to the end of 2015 in terms of keeping interest rates low. Two, there will be some programme, given the weak jobs numbers last week," he elaborates.
The hopes of fuel price hike also led the support. Oil retailers BPCL, HPCL and IOC were up 1-2% ahead of a meeting of cabinet committee on political affairs today in the evening, say sources.
State-owned oil & gas producer ONGC, gas transportation services provider GAIL and two-wheeler major Hero Motocorp rallied 2% each.
Index heavyweight Reliance Industries, private sector lender ICICI Bank, engineering and construction major Larsen & Toubro, public sector lender State Bank of India and two-wheeler maker Bajaj Auto gained over 1%.
Drug producer Cipla topped the selling list with 2.6% losses. Housing finance company HDFC and telecom operator Bharti Airtel dropped over 1%. Shares of Sterlite Industries and Jindal Steel declined over 1% too.
Utility vehicle major Mahindra & Mahindra and commercial vehicle maker Tata Motors were down 0.6% each.
The 30-share BSE Sensex was trying to hold the 18,000 level amid choppy trade. The upmove in Reliance Industries, ICICI Bank, L&T and SBI counterbalanced the weakness in HDFC pack, metals stocks, HDFC, Tata Motors and ITC.
The BSE Sensex and NSE Nifty were volatile in early trade as the global markets moved into consolidation mode ahead of decision by the Federal Reserve in its policy meeting today.
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Like Bank Nifty; mkt has strong support at 7700: PhillipCap