Markets trim gains; Nifty slips below 8,750

Markets have trimmed gains in the noon trades owing to weakness in Index heavyweights including RIL and HDFC Bank.

At 12 PM, the 30-share Sensex is up 206 points at 28,828 and the 50-share Nifty has gained 55 points at 8,741.

Another surge in US stockpiles pushed oil prices lower again today, giving up some of the big gains in New York that came after the Federal Reserve cooled the chances of an early summer interest rate hike. Reliance Industries is trading with marginal losses.

However, Indian equity markets continue to trade in the positive territory after US Federal Reserve signalled that it will not raise interest rates any time soon and would wait for both economic growth and inflation to stabilize.

Tata Steel, Sun Pharma, GAIL, L&T, ICICI Bank are the top 5 gainers and are up between 1-3.5%.

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(updated at 12 PM)

Markets are trading firm with Sensex and Nifty gaining over 1% each after the US Federal Reserve signalled that it will not raise interest rates any time soon and would wait for both economic growth and inflation to stabilize

At 10.35 AM, the 30-share Sensex is up 283 points at 28,905 and the 50-share Nifty has gained 79 points at 8,764.

Meanwhile, foreign institutional investors were net sellers in equities to the tune of Rs 457.43 crore on Wednesday, as per provisional stock exchange data.

The US central bank removed a reference to being "patient" on rates from its policy statement, opening the door wider for a hike in the next couple of months while sounding a cautious note on the health of the economic recovery.

Fed officials also slashed their median estimate for the federal funds rate - the key overnight lending rate - to 0.625% for the end of 2015 from the 1.125% estimate in December.

"Just because we removed the word 'patient' from the statement doesn't mean we're going to be impatient," Fed Chair Janet Yellen said in a press conference after Wednesday's statement.

The dollar nursed punishing losses in Asia on Thursday after investors priced in a later start and a slower pace for future US rate rises, slashing Treasury yields and firing up Wall Street stocks.

The formerly friendless euro found itself up at $1.0835, having jumped 2.8% on Wednesday, while oil held gains of 5% as the dollar retreat lifted commodities.

Early signs were also promising for regional stocks with MSCI's broadest index of Asia-Pacific shares outside Japan.

Further, India is poised to grow 7.7% this year and 8% in 2016 to become the "fastest growing major economy", according to think-tank OECD. In its interim economic assessment report released today, OECD said that over the next two years India is set to grow faster than China, where growth is slowing towards the official target of around 7%.

BUZZING STOCKS

On the sectoral front, all sectoral indices are trading in the positive territory with BSE Consumer Durables, Capital Gods, Healthcare, Metal indices trading higher over 1% each.

Country's largest private sector lender ICICI Bank today has sold its profit making Russian subsidiary ICICI Bank Eurasia Limited Liability Company (IBEL) to Sovcombank -- marking its exit from Russia. The stock is up over 1.5%. Also, Axis Bank, HDFC Bank and SBI are up between 0.5-2.5%.

The metal pack is gaining limelight in today’s trade on prospect of further stimulus measures from China which may raise hopes of a boost in demand in the biggest consumer. Sesa Sterlite, Hindalco, Tata Steel up over 1% each.

Bhushan Steel has climbed over 1.5% after the company clarified in a notice to BSE that it is in talks with banks on debt maturity realignment.

The government has firmed up a list of PSUs for divestment of minority stakes in the fiscal beginning next month, as it gears up to raise Rs 41,000 crore through such stake sales in 2015-16. The stock is up 1%. Its peer L&T has gained 2%.

The defensive stocks are gaining in the morning trades. Dr Reddy’s Lab, Wipro, Sun Pharma, HUL, ITC, TCS and Cipla are up between 1 -2.5%.

Shares of Tech Mahindra have dropped 1.5% on the BSE after the stock turned ex-bonus and ex-stock split today.

HCL Technologies has dipped over 1% after the stock turned ex-bonus for 1:1 on Thursday.

Wockhardt has gained over 3% after the company said that the US health regulator has not found any issues with respect to data security and control measures at Chikalthana plant in a recent inspection, but suggested continuous voluntary compliance for “desired quality culture”. Bhushan Steel Ltd rose 2.3% to Rs.82.90 after the company clarified in a notice to BSE that it is in talks with banks on debt maturity realignment.

Hester Biosciences is locked in upper circuit of 10% at Rs 488 on the National Stock Exchange (NSE) after the pharmaceutical company launches its PPR (Peste Des Petits Ruminants) vaccine and Goat Pox vaccine.

Shares of NTPC are trading lower over 1% on account of profit booking.

Domestic two-wheeler sales have taken a hit following the drop in rural demand due to agrarian stressors such as unseasonal rains and hailstorms which have impaired the rural economy. Last month, Hero MotoCorp reported a drop of eight per cent in sales and for Bajaj Auto in February, the motorcycle sales fell 26 per cent, according to data by the Society of Indian Automobile Manufacturers. The stock is trading with marginal losses.

In the broader market, the BSE Mid-cap and Small-cap are up 0.8% each.

Market breadth is strong with 1,432 gainers and 661 losers on the BSE.