Sensex plummets by 3.13 points, Nifty down by 9.75 points

Sensex and Nifty

The Sensex and Nifty were trading flat as investors remained cautious ahead of the Fed policy statement to be announced later today.

Parth Sharma (excerpts from Hindu BusinessLine)
Chennai, September 20:

The caution in financial markets ahead of the Fed has kept some investors from making sharper adjustments to their positions despite potentially higher tensions over the Korean peninsula following hawkish statements from US President Donald Trump overnight.

The Fed is due to announce its decision at 1800 GMT on Wednesday and is widely expected to keep rates unchanged after a two-day meeting but could begin paring its bond holdings, with reductions likely to start in coming months.

At 3.19 p.m., the 30-share BSE index Sensex was down by 3.13 points or 0.01 per cent at 32,399.24.
At 3.19 p.m., the 50-share NSE index Nifty was down 9.75 points or 0.10 per cent at 10,137.80.

Among BSE sectoral indices, capital goods index gained the most by 0.81 per cent, followed by healthcare 0.53 per cent, realty 0.3 per cent and infrastructure 0.27 per cent. On the other hand, auto index fell 0.56 per cent, oil & gas 0.25 per cent, consumer durables 0.18 per cent and banking 0.16 per cent.

Midcap stocks such as Divi’s Lab, Reliance Power, Nalco, Adani Power, NBCC and Crompton Greaves Consumer Electricals were gaining in trade.
However, Central Bank, Mahindra & Mahindra Financial Services, OFSS, Mangalore Refinery & Petrochemicals and Wockhardt were losing.

Vivimed Labs, Walchandnagar Industries, Peninsula Land and Capri Global Capital were the smallcap stocks that surged over 10 per cent today.

Tata Motors, Hero MotoCorp, Hindustan Unilever, Sun Pharma, Asian paints and Coal India slipped over 1 per cent in the BSE Sensex index.

Top five Sensex gainers were Dr Reddy’s (+3.58%), Tata Steel (+1.71%), State Bank of India (+1.42%), ITC (+1,42%) and ONGC (+1.27%), while the major losers were Hero MotoCorp (-2.12%), Tata Motors (-1.99%), HUL (-1.87%), Sun Pharma (-1.24%) and Asian Paints (-1.2%).
Market heavyweight Reliance Industries Ltd hit a record high as a cut in mobile interconnect fee is seen benefiting the company’s telecom unit.
The country’s telecom regulator more than halved a fee that mobile carriers pay for calls made from one network to another, which could hurt leading operators including Bharti Airtel Ltd .

However, Reliance Jio, which offers free outgoing calls, will benefit from the move as it has more outgoing calls to third-party networks, according to Morgan Stanley analysts.

image source: Yahoo Finance

“For Bharti Airtel and the like, the impact from the IUC (interconnect usage charges) cut will be larger as they are purely telecom operators as opposed to Reliance Industries, which is more diversified,” said Anita Gandhi, whole-time director, Arihant Capital Markets.
“There is a general fatigue in the market after a rally with some amount of consolidation. Markets are expected to consolidate till companies report their September-quarter earnings,” said Gandhi.

Reliance Industries jumped as much as 4 per cent to an all-time high, while Bharti Airtel slid as much as 6 per cent, Idea Cellular Ltd fell 7.5 per cent and Reliance Communications Ltd shed up to 4 per cent.

Among other gainers, Oil and Natural Gas Corp rose as much as 3 per cent to a three-month high after Reuters reported that the oil explorer discovered reserves of about 20 million tonnes of oil and gas, citing sources. Broader gains were capped by profit-taking in stocks such as ICICI Bank Ltd and Bharat Petroleum Corp Ltd .