Sensex, Nifty volatile on lacklustre global markets

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.

The BSE benchmark rose 17.40 points to 18,014.73 and the NSE benchmark was up 0.45 point at 5,431.45.

The market had priced in the favourable outcome of German’s Constitutional Court ruling on ESM and Dutch polls yesterday; now all eyes are on Federal Reserve's policy meeting that will be at 11:45 hours IST today. Economists feel the Fed in all likelihood should extend its forward rate guidance atleast to mid 2015.

Michael Gapen of Barclays expects the Fed to extend its rate guidance into 2015 and launch an open-ended asset purchase program. "We believe that the treasury market is not yet adequately pricing in the Fed's resolve to ease monetary policy," he added.

Back home, ICICI Bank, Wipro, Larsen & Toubro, ONGC, NTPC, ACC, Sun Pharma, Maruti Suzuki and Bajaj Auto were supporting the market.

Oil retailer BPCL gained 1% ahead of meeting of cabinet committee on political affairs today to decide on fuel price hike.

Sesa Goa tanked another 2% after the news that the Union Ministry of Environment and Forest (MoEF) has suspended environmental clearance of 93 Goa mines.

The weakness in JSPL, Sterlite Industries, IDFC, Bharti Airtel, Kotak Mahindra Bank, Reliance Industries and Infosys capped the upside.

The CNX Midcap Index rose 16 points to 7,312 as the positive market breadth.

In the second line shares, Godrej Properties was up 3% as the company sold its entire Phase 1 of its Gurgaon project on opening day.

Divestment candidates: Hindustan Copper and Oil India were up 1%. NALCO surged 3.5% and Neyveli Lignite gained 1.5%.

NIIT rose 2.5%. Panacea Biotec rallied 4%, continuing the run-up that added 66% gains in five sessions. 

Government says the cabinet may consider FDI cap hike to 74% in cable TV services. Dish TV, Hathway Cable and Den Network moved up 1.5-3%.

Jet Airways, Kingfisher Airlines and SpiceJet went up 0.5-1.5%, rising for the second consecutive session.

Deccan Chronicle Holdings (DCHL) plunged 6% as The Economic Times reported that most bankers feel the company may not qualify for corporate debt restructuring (CDR). The Times of India said the Bombay HC has put a temporary halt on any sale of properties in Andhra Pradesh, TamilNadu by DCHL.