New Delhi, India(BBN)-Markets opened higher on tracking firm global cues with metal and pharma shares leading the gains. Meanwhile, investors are likely to turn cautious ahead of the US Federal Reserve at its two-day policy meet which begins later today.
At 9:30AM, the 30-share Sensex was up 147 points at 28,585 and the 50-share Nifty was up 41 points at 8,674, reports Business Standerd.
Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 763 crore on Monday, as per provisional stock exchange data.
Asian shares got a boost on Tuesday from Wall Street’s rise, as investors positioned for the possibility that weaker-than-expected US data will prompt the Federal Reserve to adopt a cautious stance this week.
Crude oil remained under pressure from a global supply glut, after US crude CLc1 lost as much as 4 percent in the previous session to hit a six-year low. It was last down about 0.4 percent at $43.72 a barrel.
The Federal Open Market Committee is scheduled to begin its two-day policy meeting later on Tuesday, and many analysts had expected the central bank to drop the word “patient” from its formal statement on the timing of its first interest rate increase since 2006.
Economists polled by Reuters split almost evenly on whether a rate increase will come in June or later in the year.
But downbeat data on U.S. manufacturing, industrial output and housing on Monday offered the Fed a reason to toe a cautious line on policy.
BSE Healthcare, Auto and Capital Goods indices were the top gainers up over 0.8% each followed by Bankex and FMCG among others.
Tata Motors, HDFC, HDFC Bank, ITC and L&T contributed the most to the Sensex gains in early trades.
In the pharma segment, Dr Reddy’s Labs, Sun Pharma and Cipla were up 0.4-2% each.
BBN/SK/AD-17Mar15-11:30am (BST)
