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Benchmark indices continue to remain volatile in a narrow range with Sensex and Nifty oscillating between negative and positive zone.
At 12:45 PM, the Sensex was up 33 points at 20,531 and the Nifty was trading at 6,088 mark, up 14 points.
Adds Devangshu Datta, Technical Analyst and market expert, “Trend depends partially on the FOMC. Overall, the market seems in the early stages of an intermediate downtrend. I would look to be net short on Nifty unless there's a strong positive surprise from the FOMC.”
On the global front, Asian stocks slipped on Friday, as fears about the impact of the Federal Reserve's stimulus withdrawal on emerging markets offset the reassurance of upbeat U.S. growth data.
With several countries, including Hong Kong and Singapore, observing the Lunar New Year holiday, volume across the region was expected to be lighter than usual.
MSCI's broadest index of Asia-Pacific shares outside Japan . Japan's Nikkei stock average reversed sharply, shedding 0.9 percent as a resurgent yen took a toll on exporter shares.
Back home, the rupee appreciated due to dollar sale by banks. Bullish equities also helped the rupee.
At 12:45 pm, the rupee was trading at Rs 62.44 compared with previous close of Rs 62.58 per dollar.
Foreign institutional investors (FIIs) sold shares worth a net Rs 430.20 crore on Thursday, as per provisional data from the stock exchanges.
On the sectoral front, BSE Realty index has surged by nearly 2% followed by counters like Metal, IT, Banks and Oil & Gas, all gaining by 1% each. However, BSE Consumer Durables and Auto indices are trading marginally lower.
IT stocks are in demand on good US economic data. TCS, Wipro and Infosys have gained between 0.5-2%.
Bank stocks have gained after the Reserve Bank of India (RBI) laid out a road map to deal with a surge in bad loans in the banking system. SBI, Axis Bank and ICICI Bank have gained by over 1%.
Other notable gainers are M&M, Tata Steel, Tata Power and Bharti Airtel.
On the losing side, Tata Motors, HDFC, NTPC, Hero Moto and Bajaj Auto have declined between 1-3%.
Among other shares, Punjab National Bank rose 4.7% to Rs 542.20 as the bank's ratio of net non-performing assets to net advances declined to 2.8% .
Neyveli Lignite Corporation has risen 3.04% to Rs 57.65 after net profit jumped 120.6% to Rs 489.02 crore on 4.7% growth in net sales to Rs 1314.95 crore in Q3 December 2013 over Q3 December 2012.
Oberoi Realty has jumped 4.77% to Rs 209.80 after Supreme Court on Thursday, 30 January 2014, dismissed the previous Bombay High Court order that restricted several acres of forest land in suburban Mumbai for development.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have surged over 1%.
The market breadth in BSE remains firm with 1,357 shares advancing and 902 shares declining.
