Markets end marginally lower ahead of Fed rate decision; IT stocks drag

BSE IT fell 1.8% dragged by TCS and Infosys down 2% each, making them the top losers on Sensex

Benchmark indices settled the day marginally lower as investors awaited Federal Reserve rate decision. The Nifty50 index had logged its fresh all-time intra-day high of 9,123 in the previous session.
 
The S&P BSE Sensex settled the day at 29,398, down 44 points, while the broader Nifty50 ended at 9,084, down 2 points.
 
In the broader market, the BSE Smallcap and BSE Midcap indices outperformed the frontline indices to rise 0.9% and 0.6% respectively. About 1,411 shares advanced against 1,398 declining shares on the BSE.

"After a range bound movement the market had settled with small losses led by IT heavyweights due to appreciation in rupee. Global investors are waiting for more clarity from FED meet for any change in pace of rate hikes this year. Despite a growing expectation of FED rate hike the FIIs were attracted to India equities due to a favorable political environment, Rupee has strengthened to a fresh 16 months high led by foreign inflows," said Vinod Nair, Head of Research, Geojit Financial Services in a note.

 
Meanwhile, rupee hit a 16-month peak against the dollar today on hopes of increased foreign investments in equities. The currency rose by another 38 paise to 65.44 on sustained offloading of the US dollar.
 
Sectors and Stocks
 
IT stocks were the main laggards in today’s trade on surging rupee. BSE IT was down 1.8% dragged by TCS and Infosys falling 2% each, making them the top losers on BSE Sensex.
 
Idea Cellular soared over 9% after reports stated that US-based ATC was close to completing a buyout of the firm’s tower business.
 
Amtek Auto also rose as much as 4.1% at intra-day to a more than one-week high after media reports that company's Chairman and founder Arvind Dham has began exploring options to sell assets he owns. The stock ended 1.7% higher.
 
Shares of PVR fell nearly 4% as investors turned wary of Karnataka government’s decision to cap multiplex rates to Rs 200 maximum.
 
HeroMoto Corp, Tata Steel, RIL and Tata Motors were the biggest movers on BSE Sensex while TCS, Infosys, Wipro and HUL were the main losers on the index.
 
Global Markets
 
Asian stocks consolidated recent gains on Wednesday before a US central bank policy meeting that could signal how much monetary tightening to expect during the remainder of the year, with an immediate rate hike fully priced in by markets.
 
Though recent data, particularly out of China, has fueled a rally in Asian equities since the start of the year, investors are expecting more headwinds for emerging markets due to an increasingly hawkish Fed.
 
Having posted its second-biggest daily gain this year in the previous session, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1% near the day's highs in cautious trading.
 
Japan's benchmark Nikkei average was down 0.14% while stocks in mainland China and Korea declined 0.13 and 0.2% respectively.
 
European shares rose on Wednesday, boosted by strength in basic resource and oil stocks. The pan-European STOXX 600 index gained 0.4% in early deals.
 
(With inputs from Reuters)