Sensex, Nifty turn cautious ahead of US Fed policy outcome; HCL slumps, auto stocks gain

Mumbai: BSE benchmark Sensex rose nearly 200 points in opening trade today only to turn cautious tracking negative global cues ahead of the US Federal Reserve policy announcement scheduled later in the day. The 30-share index, which opened 196.79 points higher, pared most gains and was trading up by 7.63 points, or 0.02 percent, at 35,167.99. The index had gained 659.09 points in the previous three sessions on the back of widespread gains triggered by encouraging corporate earnings and strong auto sales data amid record GST collections. The NSE Nifty too turned choppy and was trading 1.75 points, or 0.02 percent, lower at 10,737.60 Brokers said investor sentiment was cautious ahead of US Federal Reserve’s two-day policy meet outcome, as the central bank in March signalled that the path of future rate hikes could be slightly steeper over the next few years than previously thought. [caption id=“attachment_4316243” align=“alignleft” width=“380”]  File image of a stock broker at BSE. Reuters.[/caption] Coal India, Infosys, ICICI Bank, HUL, TCS and Tata Steel were among the top losers on Sensex today, falling up to 2 percent. Shares of HCL Technologies today slumped as much as 5 percent in morning trade on the bourses after the IT firm posted 9.8 percent decline in consolidated net profit for the quarter ended March 2018. Top gainers were Kotak Bank, Maruti Suzuki, Hero MotoCorp, Hero MotoCorp, Bajaj Auto, RIL, Adani Ports, Dr Reddy’s, L&T, Axis Bank, HDFC Bank and Sun Pharma, rising by up to 3.75 percent. Meanwhile, domestic institutional investors (DIIs) bought shares worth a net of Rs 261.98 crore, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 385.47 crore on Monday, provisional data showed. Financial markets was shut yesterday on account of ‘Maharashtra Day’. Among other Asian markets, Japan’s Nikkei was down 0.32 percent while Hong Kong’s Hang Seng shed 0.47 percent in early trade today. Shanghai Composite Index too fell 0.16 percent. The US Dow Jones Industrial Average ended 0.27 percent lower in yesterday’s trade. Rupee sheds 4 paise against US dollar The rupee depreciated 4 paise to 66.70 against the US dollar in early trade today on fresh demand for the greenback from importers and banks ahead of US Federal Reserve’s two-day policy meet outcome. Dealers attributed the rupee’s fall to fresh demand for the US dollar and sustained foreign fund outflows. However, a higher opening in the domestic equity markets and weakness in the American currency against some currencies in the global market ahead of the Fed policy announcement capped the rupee fall, they said. On Friday, the rupee had gained 9 paise to close at 66.66 on dollar-selling by exporters and a stellar rally in local equities. Forex market remained closed on Monday and Tuesday on account of ‘Buddha Purnima’ and ‘Maharashtra Day’, respectively. Meanwhile, the benchmark BSE Sensex was trading higher by 196.79 points, or 0.55 percent, at 35,357.15 in opening deals.