Sensex flat ahead of RBI policy, Trent up 11% on Tesco buzz

The market is volatile in early trade on Wednesday with the Nifty hovering around 6150 level as investors are cautious ahead of announcement of RBI policy.

The Sensex rose 36.34 points to 20,648.48, and the Nifty advanced 11.40 points to6,150.45.

Shares of Reliance Industries, HDFC, Larsen and Toubro, TCS, State Bank of India and Tata Motors are leading gainers.

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Pharma stocks continued to see buying interest. However, the laggards are ICICI Bank, HDFC Bank, ITC, Bharti Airtel and Infosys.

Trent has surged more than 11 percent after Tesco says it had applied to buy a 50 percent stake in the company’s unit, Trent Hypermarket.

Indian rupee breached the 62-mark against the dollar in early trade. It opened higher by 19 paise at 61.82 as compared to Tuesday’s close of 62.01.

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According to Pramit Brahmbhatt, CEO of Alpari India, currency markets will be subdued ahead of RBI’s policy. However markets are more keenly awaiting Fed’s monetary statement, he adds.

“Weak equity-strong dollar internationally and dollar demand at this level will keep rupee subdued. RBI intervention might provide some relief,” Brahmbhatt said.

When the Federal Reserve announces its next move on Wednesday, some expect it to reduce its $85 billion monthly bond-buying program, targeting an eventual end to quantitative easing in late 2014.

Others expect the Fed to begin to reduce the program in early 2014, or to finish it off by 2015. But Marc Faber has a different take altogether . “The Fed will never end QE for good,” Faber told CNBC’s “Futures Now. “They will continue because these programs, once they’re introduced, usually keep on going.”