Sensex, Nifty flat; Axis Bank up 2%, pharma stocks drag

Moneycontrol Bureau1:45 pm Exclusive: Private equity firm KKR alongwith CPPIB are likely to submit a formal bid to buy Bharti Infratel next week, sources say. The two companies are the only bidders after Brookfield’s exclusivity ended.

The companies are looking to acquire 51 percent stake in the company. The deal is expected to value Bharti Infratel at Rs 70,000 crore.

CNBC-TV18’s Nisha Poddar, quoting sources, said that KKR and CPPIBwill start due diligence process once the bid is accepted by Bharti.

KKR was unavailable to comment and Bharti Infratel declined to comment.

1:30 pm Market outlook: The action by the US Fed was expected and the word coming from them suggests a more dovish stance, says Nilesh Shah of Envision Capital. "The good news is that they have laid out a roadmap for the next three years," he added. In an interview with CNBC-TV18 he said that demonetisation as an event maybe over but its impact on quarterly earnings is yet to be seen. On the macroeconomic front he further said that uncertainty around the roll out of the goods and services tax (GST) bill has certain serious ground implications.Don't miss: Buy, sell, hold: 2 stocks that you may bet for good returns

The market is flat with the Sensex up 33.09 points or 0.1 percent at 26635.93. The Nifty is up 5.65 points at 8188.10. About 1311 shares have advanced, 1138 shares declined, and 166 shares are unchanged.

TCS, Wipro, Axis Bank, M&M and Adani Ports are top gainers while Sun Pharma, Tata Motors, NTPC, ITC and Bharti Airtel are losers in the Sensex.

The interest rate hike by the Federal Reserve reflects a strengthening US economy that will benefit emerging market economies but also make them vulnerable to volatile capital flows, Moody's Investors Service said today.

"A resurgence of heightened cross-border capital flow volatility in response to the Fed's tightening could have negative spillovers for those with large external funding needs, high leverage, macroeconomic imbalances, or uncertainties around politics and policies," it said.

The interest rate hike reflects a strengthening US economy that should continue to expand through 2018 and emerging markets exporters will benefit if US growth translates into higher import demand.