BSE Sensex ends up 158 pts amid volatility; banks support

Moneycontrol Bureau
Live Market Commentary 

3:50 pm Market closing: After opening on a weak note and tepid trading session, the Sensex closed at 158.13 points or 0.80 percent at 19962.16. The Nifty too managed to end above the 5900 level at 5909.90, up 59.70 points. About 1209 shares have advanced, 1105 shares declined, and 179 shares are unchanged.

NTPC, Tata Power, Dr Reddy's Labs, SBI, HUL were the top gainers in the Sensex.

The Indian currency opened the day at 63.25 per dollar, slightly stronger than Tuesday’s close, and has since gained further ground against the greenback. A weak dollar as well as the recent RBI measures are said to be propping up the rupee today. Exporters and FIIs have been noted selling dollars.

Global markets gain as well, as investors await the conclusion of the Federal Reserve's Monetary Policy meeting. Key Asian indices end the day in the green. European markets edge higher and the US futures indicate a positive opening for Wall Street.

3:40 pm Buzzer: Shares of Strides Arcolab jumped 5 percent intraday on Wednesday. The drug maker has received United States Food and Drug Administration (US FDA) approval for its semi-solid and ointment facility in Milan, Italy. 

"The company is expecting its first approval of a niche semisolid product by Q1 FY2014, " it said in a filling to the BSE.

3:30 pm FII view: 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.

“That will involve at one instance the dropping of the unemployment rate target from 6.5 percent to 6 percent and will also giving a bit more clarity in relation to the whole asset purchase programme and the exit strategy for the Federal Reserve,” he adds.

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The market has managed to make some movements in the last hour of trading. The Sensex is up 140.48 points or 0.71 percent at 19944.51, and the Nifty up 45.15 points or 0.77 percent at 5895.35.

About 1114 shares have advanced, 1107 shares declined, and 164 shares are unchanged.

Tata Power, NTPC,  SBI, HUL and Dr Reddys Labs are top gainers in the Sensex. On the losing side are BHEL, Hero Motocorp, Sesa Goa, HDFC and M&M.

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.

Meanwhile, 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.

The investment bank says India's corporate health, and asset quality of banks will remain under pressure while positioning risk and election uncertainties are likely to linger as well.