Nifty hovers around 8850, Sensex up over 200 pts; IT stocks drag

Moneycontrol Bureau1:45 pm Market outlook: Vibhav Kapoor of IL&FS said that markets are going up and they will keep going up for some more time. “Liquidity is gushing everywhere. The US Fed has indicated that even next year, rates won’t go up. They have reduced their targets.” So, unless the US were to go into a recession, this trend will continue, he said, warning the upcoming US elections are going to be a test. His target for Nifty in March 2017 was 9100, but he believes the index will touch it by October this year itself, given the liquidity. By March we will still be at 9100, but after that we will go in for a substantial correction of about 10 percent, he said.1:30 pm MPC gears up: The Appointments Committee of the Cabinet today announced the names of Monetary Policy Committee members, who will hold office for a period of four years. This includes Chetan Ghate, Associate professor - Economics & Planning Unit, Indian Statistical Institute; Pami Dua, Professor and Head of department at Delhi School of economics and Ravindra Dholakia, economics professor at IIT, Ahmadabad. The committee will also include the Reserve Bank Governor Urjit Patel and the deputy governor and an executive director. This comes just before the next central bank meet scheduled for October 4.Don't miss: Buy, sell or hold: 16 stocks for your portfolio

The market is still holding gains with the Sensex up 232.88 points or 0.8 percent at 28740.30. The Nifty is up 74.55 points or 0.8 percent at 8851.70. About 1575 shares have advanced, 1022 shares declined, and 200 shares are unchanged.

Lupin, TCS, Axis Bank, Coal India and HUL were losers in the Sensex while  Hero MotCorp, NTPC, SBI, Adani Ports and Relinace were gainers.

European stocks opened higher as global investors reacted to the widely expected decision by the US Federal Reserve to hold interest rates steady.