Markets steady; Telecom index gains over 2%

Broader markets ourperformed with BSE Midcap and BSE Smallcap rising 0.3% and 0.4% respectively

Benchmark indices gained in the noon trade amid mixed cues in Asian markets as dollar gained after Federal Reserve Chair Janet Yellen hinted on hiking rates at a gradual pace this year.
 
Back home, investors remained cautious as the corporate earnings season continues. Yes Bank, Axis Bank and Federal Bank will announce their Q3 results today.
 
At 12:32 pm, the S&P BSE Sensex was trading at 27,330, up 73 points, while the broader Nifty50 was ruling at 8,435,up 18 points.
 

Broader markets marginally ourperformed benchmark indices with BSE Midcap and BSE Smallcap rising 0.43% and 0.44% respectively.

 
"Now if it sustains above 8,440 then only it may see an up move towards 8,480 and 8,510 zones while holding below 8,370 may attract a profit booking decline towards 8,315 and 8,280 zones. Traders are suggested to remain light if immediate support is broken out on next trading sessions as follow up buying is missing at higher levels," said Anand Rathi Equity Advisory in a note.
 
Meanwhile, on Tuesday, foreign investors turned net buyers and bought equities worth Rs 319.14 crore, while domestic investors also bought equities worth Rs 245.03 crore.
 
Sectors and Stocks

Adani Ports, Bharti Airtel, RIL, ONGC and NTPC were the top gainers while the index was dragged by HDFC, Axis Bank, M&M and HUL.

Axis Bank and YES Bank fell 1.1% and 0.6% respectively ahead of their quarterly results today.

Uttam Galva rose 7% after reports that Aion Capital Partners -- a joint venture venture between Apollo Global Management and ICICI Venture is planning to takeover the troubled steel maker.

Oil & gas was the biggest sectoral gainer, up 0.9% led by gains in Petronet LNG, IPC, BPCL and HPCL. Onli Oil India was trading in red in the index.

Hatsun Agro Products hit a record high of Rs 420, up 5% on the BSE in early morning trade, after the company reported a strong 64% year on year (YoY) growth in net profit at Rs 28.81 crore for the quarter ended December 31, 2016 (Q3FY17).

 
Yellen makes case for rate hike
 
With the US economy close to full employment and inflation headed toward the Federal Reserve's 2% goal, it ‘makes sense’ for the US Federal Reserve to gradually lift interest rates, Fed Chair Janet Yellen told the Commonwealth Club of California in San Francisco on Wednesday.
 
“Waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road - either too much inflation, financial instability, or both," Yellen said. "In that scenario, we could be forced to raise interest rates rapidly, which in turn could push the economy into a new recession," she added.

 
The Fed raised short-term rates last month for only the second time since the 2007-2009 financial crisis.
 
GST Council plans three-rate service tax structure
 
Just as for goods, the goods and services tax (GST) Council is planning to bring different rates of tax for services as well. The highest rate would be for “luxury” services.  This means, instead of a uniform rate of tax on all services, including cess and surcharge, there would possibly be three rates: luxury, standard and basic. It will be the first time since tax on services was introduced in July 1994 that there would be more than one rate for the tax.

 
BSE to delist 36 firms
 
BSE will delist as many as 36 companies listed on its platform from 20 January as they have remained suspended for more than 13 years. This is in addition to over 250 firms already delisted by the exchange last year. The securities of these firms have been under suspension for more than 13 years on account of non-compliance of various clauses of listing regulations.

Other Developments
 
Gold prices on Thursday held on to their losses from the previous session, when they fell 1% on a strong dollar, after Federal Reserve Chair Janet Yellen advocated lifting US interest rates gradually. Gold reached its 8-week high level at $1,218.64 an ounce on Tuesday.

 
Oil prices fell on Wednesday to their lowest in a week, on a strong dollar and expectations that US producers would boost output even as OPEC's output fell from a record high. US shale production is set to snap a three-month decline in February, the US Energy Information Administration said on Tuesday, as energy firms boost drilling activity.
 
Global Markets
 
Asian shares edged lower on Thursday and the dollar rebounded after Federal Reserve Chair Janet Yellen hinted that interest rates in the United States could rise quickly this year.
 
The dollar had been grinding lower in recent sessions, dropping to its weakest levels since early December after US President-elect Donald Trump expressed concerns about a stronger greenback.

 
Investors have also remained anxious ahead of Trump's inauguration on Friday, with many using it as an excuse to take some money off the table.
 
MSCI's broadest index of Asia-Pacific shares outside Japan inched 0.1% lower in early trade.
 
On Wall Street, stronger financial shares helped push up the S&P 500 though the Dow Jones Industrial Average edged down.
 
Japan's Nikkei stock index was up 1%, lifted by the weaker yen's tailwind.

(With inputs from Reuters)