Sensex up for 4th day, rises 21 pts ahead of Fed meet

After a lower start, the Sensex traded in a narrow 100-point range and closed 21.20 points, or 0.12 per cent higher at 17,257.38. The BSE benchmark index had gained nearly 600 points in last three days on hopes of rate cut by RBI.

Brokers said investors in Indian shares remained cautious in line with Asian markets that ended mixed as participants wait for the results of the US Federal Reserve's two-day monetary policy meeting that concludes today.

In the 30-share Sensex, 16 stocks gained including Cipla that surged 4.40 per cent after its profits beat estimates. BHEL, Tata Power, SBI and HDFC were among other top gainers.

Among losers, CIL dropped 2.73 per cent on reports of the fuel supply pact with power firms hitting margins. ONGC, Hero Moto, TCS and Tata Steel lost in 1-2 per cent range.

The NSE index Nifty rose 11.50 points to 5,240.50.

Reports that India's exports contracted for the second consecutive month in June by 5.45 per cent compelled investors not to initiate fresh long positions, said dealers.

European markets, including the UK, France and Germany, were last trading mixed with an upward bias on hopes the European Central Bank would announce steps later this week.

"FIIs have been pumping money throughout the July and this has given a boost to the mood. Hopes of stimulus decision to regulate the Eurozone crisis also helped," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.

Sentiments were also subdued as Goldman Sachs cut its growth forecast the second time in two months, traders said.

Meanwhile, rupee strengthened to 55.53 against the dollar compared to yesterday's close of 55.65.