Sensex Opens Flat Ahead of Fed Meet; Banking Stocks Fall

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, March 16, 2016, 9:27 [IST]

Benchmark indices opened the day flat, in line with most markets, as tentative mood prevailed ahead of the US Fed meet, which will decide on interest rates later today.

It is widely expected that the Fed may hold interest rates steady, but, markets would look for further hints of rate hikes. A hawkish tone, may see reaction across global markets.

The Sensex was trading with losses of 16 points, while the Nifty fell 1 points in trade. Banking stocks saw some selling pressure in early trade, despite hopes that there could be an interest rate cut in the RBI's April policy.

ICICI Bank, Canara Bank and Axis Bank were the early losers in trade. However, the smaller sized banks like Federal Bank and Karnataka Bank saw buying interest.

Realty stocks were trading higher, following passage of the Bill in both the houses of parliament. Oberoi Realty, DLF and HDIL were the major gainers in trade.

TVS Motors was trading higher after the company said that two-wheeler expects its domestic sales of two-wheelers to grow by 10 per cent.

IT stocks were witnessing a mixed trend with Infosys marginally up, while TCS was trading lower.

Meanwhile, Asian markets were trading mixed with the Hang Sang and the Nikkei lower, while the Shanghai Composite and the Strait Times were higher.

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