The News International Team
10:58am Market Update: The Sensex rose 224.29 points to 28846.41 and the Nifty climbed 64 points to 8749.90.
About 1422 shares have advanced, 767 shares declined, and 164 shares are unchanged on the BSE.
10:45am FII View: Keith Parker, Barclays says as the March FOMC shifted the goalposts, the brokerage now expects the first rate hike in September.
“As expected, “patience” was dropped & the economic outlook was downgraded. We also now expect the target range for the federal funds rate to reach 50-75 bps in December versus 75-100 bps before,” he adds.
10:30am New Listing: Investors turned sellers in Ortel Communications today, the day one. The stock fell 11.6 percent in opening trade to Rs 160.05 (the day’s low) on the National Stock Exchange against the issue price of Rs 181.
It was trading at Rs 168.05, down Rs 12.95, or 7.15 percent currently while on the Bombay Stock Exchange, it was trading at Rs 171.95, down Rs 9.05, or 5 percent.
The Orissa-based cable TV services provider raised Rs 175 crore through the issue, which was opened for subscription during March 3-5. It had cut the size of offer for sale to sail through the issue on last day.
Total shares on sale were 1.2 crore shares, consisting 60 lakh shares fresh issue and 60 lakh shares offer for sale by New Silk Route. On last day, the size of offer for sale was reduced to 36.7 lakh shares.
10:00am Market Check
The market is in high spirits on Fed move. The Sensex is up 334.17 points or 1 percent at 28956.29 and the Nifty is up 93.10 points or 1 percent at 8779.00. About 1439 shares have advanced, 553 shares declined, and 143 shares are unchanged.
GAIL, Axis Bank, Sun Pharma, HDFC and L&T are top gainers while NTPC is still down.
World oil prices jumped as a cautious Federal Reserve statement offset data showing a big increase in US crude inventories. US benchmark West Texas Intermediate gained USD 1.20 to USD 44.66 a barrel after earlier falling to a new six-year low. European benchmark Brent oil for May delivery advanced USD 2.40 to USD 55.91 a barrel.
Crude prices surged after the Fed’s statement, which noted that US economic growth had “moderated somewhat” since January. The Fed dropped a pledge to remain “patient” on raising interest rates, signaling a midyear federal funds rate hike remained possible after keeping it at the zero level for more than six years.
But other language in the Fed’s statement emphasised that the central bank was in no rush to hike rates, sending the dollar lower.