Sensex rises 150 points, Nifty reclaims 11,700; all eyes on Fed meet outcome

The shift to a more dovish tone from the Fed has been a key support for global markets.

Sensex rises 100 pts, Nifty opens above 11,700; Jet Airways plunges 10%
NEW DELHI: Domestic markets moved higher on Tuesday, after falling over a percent in the previous session, amid hopes that the US central bank would adopt a more dovish stance and may slash borrowing costs. However, the gains remained capped amid economic worries back home.

There has been increasing talk that the Fed will cut borrowing costs for the first time in more than a decade, though the expectation is for a move later on. The shift to a more dovish tone from the bank has been a key support for global markets in the face of the trade uncertainty.

Fitch cut India's growth forecast for the current fiscal for a second time in a row to 6.6 per cent as manufacturing and agriculture sectors showed signs of slowing down over the past year which kept investors cautious.

Globally, major Asian markets were trading with tepid gains with all eyes on FOMC meet outcome. The Fed begins a two-day meeting later today which will conclude on Wednesday.

The rupee on Tuesday, after falling for the three-straight session, opened 8 paise higher at 69.83 against the US dollar on account of some selling in American currency by banks and exporters.

“Expectation is that the central bank could remain dovish and any hints towards rate cut by the Fed could put the greenback under pressure. Today, USDINR pair is expected to quote in the range of 69.40 and 70.05-70.20,” brokerage firm Motilal Oswal Financial Services said.

At around 9:30 am, the 30-pack Sensex traded 143.80 points or 0.37 per cent higher at 39,104.

Nifty surged 39.65 points or 0.34 per cent to 11,712 with 14 constituents in the black and 36 in the red. One stock remained unchanged.

Among Sensex stocks, IndusInd Bank was the biggest gainer, up 1.77 per cent. Vedanta, Power Grid, Kotak Bank, Infosys and HCL Tech were among other gainers, rising upto one percent.

Yes Bank dropped the most, down 1.55 per cent. Other losers were -- HUL, SBIN, Asian Paints, Bharti Airtel and ONGC.

BSE Midcap and BSE Smallcap shed 0.09 per cent each.

On the sectoral front, it was a mixed bag with power as the top gainer, up 0.44 per cent, and FMCG the worst laggard, down 0.63 per cent.

Meanwhile, India Inc’s advance tax figures grew 171 per cent during the first quarter of 2019-20, prompting the tax authorities to say that the economy may be back on track after witnessing lacklustre growth in earlier quarters. In overall direct tax collection, Mumbai has registered 133% growth, collecting Rs 17,174 crore of advance taxes against Rs 7,356 crore in the same period last year, according to the data compiled by the tax department.




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