Sensex surges over 200 points; Nifty hits 7,900 ahead of Fed meet

Markets continue to trade higher on the back of positive global cues along with buying demand in financials and defensive sectors like FMCG, Healthcare and IT leading the gains.

Further, traders have maintained cautious stance ahead of the two-day US Federal Reserve meet which begins today.

At 12:18 PM, the Sensex has gained 251 points to trade at 25,956 and the Nifty has climbed 72 points to trade at 7,901.

However, the broader markets are underperforming the benchmark indices. BSE Midcap and Smallcap indices are trading marginally lower.

The market breadth is positive on the BSE with 1,114 advances versus 980 declines.

MACRO-ECONOMIC DATA

India's exports fell sharply and trade deficit widened last month, as per the latest data released by the Ministry of Commerce & Industry. Merchandise exports fell 20.66% to $21.26 billion in August 2015 over August 2014.

Non-oil imports rose 7.01% to $26.38 billion whereas oil imports plunged 42.59% at $7.35 billion in August 2015 over August 2014. The trade deficit rose sharply to $12.47 billion in August 2015 from $10.66 billion in August 2014.

Meanwhile, as per the latest data released by the Reserve Bank of India (RBI), India's services exports rose 0.3% to $13.39 billion in July 2015 over July 2014, snapping decline for last four sequential months.

However, India's services imports jumped 10% to $7.502 billion in July 2015. Thus, India's services trade surplus declined 9.8% to $5.884 billion in July 2015 from $6.522 billion in July 2014.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 910.85 crore yesterday, 15 September 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 480.50 crore yesterday, 15 September 2015, as per the provisional data.

GLOBAL MARKETS

Asian shares followed Wall Street higher on Wednesday, albeit in thin volume, and short-term U.S. bond yields held near 4 1/2-year highs as investors braced for the possibility of the first interest rate hike in the United States in almost a decade.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3%, while Japan's Nikkei gained 1.1%.

China shares rose 0.6% after sliding 6% early in the week on concerns about its slowing economy.

Markets remain mixed on the likelihood of a rate increase by the Fed at its two-day meeting starting later in the day, and US economic data published on Tuesday did little to either back, or douse, expectations of one.

SECTORS & STOCKS

Sectors like Healthcare, IT, Banks are trading higher by almost 1% each. However, BSE Consumer Durables and Capital Goods indices are up 1-2%.  

The top gainers from the Sensex pack are Hero Moto, Sun Pharma, Bharti Airtel, Bajaj Auto and Axis Bank.

Sun Pharmaceutical Industries has entered into an agreement with InSite Vision to acquire the US-based eyecare firm for around $48 million plus related debt and other transaction costs to strengthen its branded ophthalmic portfolio in the US. The stock is up by 2%.

Bharti Airtel has unveiled its high speed 4G services in Thiruvananthapuram.

On the losing side, BHEL, NTPC, L&T, HUL and Hindalco slipped between 0.5-1%.

Among other shares, Suven Life Sciences has rallied nearly 6% to Rs 245 on the BSE after the company announced it secures three product patents two from Canada and one from China for a drug used in the treatment of neuro-degenerative diseases.

With Reuters & Capital Markets input