Pre-market: US Fed ends QE; F&O expiry to keep markets choppy

Markets are likely to open higher but remain volatile later ahead of October F&O expiry today

Markets are likely to open higher tracking gains in their Asian peers but are likely to remain volatile in the latter half of the trading session with the October derivative contracts set to expire today.

Major US share indices ended flat with negative bias on Wednesday after the US Federal Reserve Bank at its two-day meeting ended its monetary stimulus measures of bond purchases and remained confident that the economy is on a growth track. The Dow Jones ended down 31 points at 16,974, the S&P 500 slipped 3 points at 1,982 and the tech-laden Nasdaq lost 15 points to close at 4,549.

Asian markets were trading mixed with shares in Japan gaining the most on the back of a weaker yen. The benchmark Nikkei was up 0.5% while Shanghai Composite was up 0.2%. Further, Hang Seng was trading 0.2% lower while Straits Times was trading flat with negative bias.

Foreign investors were net buyers in equities to the tune of Rs 786 crore on Wednesday, as per provisional stock exchange data.

Stocks to watch

Real estate companies will be in focus after the government has relaxed the norms for allowing foreign direct investment (FDI) in the construction development sector. It is expected the move will boost affordable housing projects and smart cities across the country.

Cement majors ACC and Ambuja Cements will be in focus ahead of their July-September quarter earnings to be tabled later during the day.

Tech Mahindra reported numbers that are in line with market expectations.The company reported a net profit of Rs 720 crore for the quarter ended September, almost flat compared to the year-ago quarter, owing to increase in total expenses.

Gati Limited, an express distribution and supply chain solutions provider, reported a 117 per cent rise in net profit to Rs 12.49 crore for the quarter ended September 2014, as compared with a profit of Rs 5.76 crore in the corresponding quarter previous year.

Direct-to-home (DTH) service provider Dish TV India's standalone net loss widened to Rs 15.07 crore for the second quarter ended September 30, 2014 due to a provision earmarked for a 'disputed' license fee.

FMCG major Emami reported a net profit of Rs 92.76 crore in the the second quarter of the current fiscal, a rise of 16% from Rs 79.96 crore in the same period a year ago. The result was marginally higher than street expectations.