STOCK MARKET BSE NSE

Sensex Heads for Third Day of Gains Ahead of Fed

The benchmark BSE index was 0.78 percent higher after rising as much as 1 percent earlier in the session.

Published: 16th December 2015 02:41 PM  |   Last Updated: 16th December 2015 02:41 PM   |  A+A-

Sensex_Reuters

broker monitors share prices while trading at a brokerage firm in Mumbai. |Reuters

MUMBAI: Indian stocks rose more than 1 percent on Wednesday, extending gains for a third session as investors feel markets have by now priced in an expected hike in U.S. interest rates later in the day.

The U.S. Federal Reserve is widely expected to announce a hike in interest rates when its two-day policy-setting meeting ends later in the day.

It would be the first U.S. rate hike in nearly a decade, signalling the beginning of an end to an expansionary monetary policy that has supplied a tidal wave of liquidity to risk asset markets globally.

"The market has already priced in a rate hike and we have corrected significantly, the problem will be if the Fed doesn't hike rates tonight," said Gaurang Shah, vice president at Geojit BNP Paribas.

"We won't see a runaway rally, we might see some minor sell-offs, but everyone is waiting for this (Fed meet) to get over."

The broader NSE index was 0.8 percent higher after rising as much as 0.98 percent earlier in the day.

The benchmark BSE index was 0.78 percent higher after rising as much as 1 percent earlier in the session.

Gains were widespread with ICICI Bank rising 2.17 percent and Infosys up 1.2 percent.

Among losers, utility vehicle maker Mahindra and Mahindra fell over 6 percent after India's top court ordered a temporary ban on the sale of large diesel cars in New Delhi as the country's highly polluted capital seeks ways to tackle one of its worst-ever bouts of toxic smog.

But shares of companies such as Indraprastha Gas rose 7.6 percent while GAIL (India) Ltd gained 5 percent as investors saw them as beneficiaries from the government's focus on cleaner fuel to tackle pollution.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp