US Fed meet has heart warming influence on Indian stocks

Indian stocks closed near 2-week highs on Wednesday as traders bought into select blue chips ahead of the crucial meeting of the US Federal Reserve that will decide the course of interest rates in the near term. Power, Metals and Banking stocks were in demand.

The Nifty rose 70 points to end the day at 7,899. The index clocked an Advance-Decline Ratio of 40/10 with Yes Bank, Hero Motor, Bajaj Auto, Bharti Airtel and IndusInd Bank taking the top five gainers' slots on the index. Stocks slipping in trade included BPCL, Cairn, NMDC, BHEL and Larsen.

Sun Pharma, Larsen and Axis Bank were the top traded stocks on the National Stock Exchange. Meanwhile, the US Fed's meeting on interest rates is slated for Thursday night and our stock markets are closed tomorrow for a local holiday. Hence, today was the only day for traders to hedge their positions in case the Fed decides to act upon interest rates, which haven't been raised for more than 9 years.

Broader markets were mixed with the CNX 100, CNX 200 and CNX 500 Indices adding 0.4 percent in trade but the CNX Mid Cap and the CNX Small Cap indices dropping about a percent each. Some sectoral indices inched up smartly in trade. The Bank Nifty added 1.2 percent; CNX PSU Bank Index rose 1 percent and indices representing the Pharma, IT and metal indices rose between 0.4 percent and 1 percent each.

The mood was buoyant on the Bombay Stock Exchange with the Sensex jumping 258 points to 25,963. Wipro, HDFC, Cipla and Maruti were among top gainers while Coal India and BHEL fell in trade. The Index saw an Advance-Decline Ratio of 25/5 and Sun Pharma, Hind Unilever and Larsen were the top three traded stocks on the Sensex.

While benchmark indices enjoyed the bounce, it was the bears which bested the bulls in the broader market with 1,413 stocks dropping compared with 1,254 that gained over Tuesday's close.

Sentiment was positive on the futures and options space with 90 futures gaining compared with 69 that fell. Yes Bank Futures continued their uptrend, as did SAIL and JP Associates on Wednesday. Amtek Auto came under selling pressure. Other notable futures to lose ground were HPCL, Dabur and Kaveri Seed. Fertiliser and Textile sector futures were also under the bears' grip.

The list of volume buzzers had a surprise entry in the form of Agro Tech Foods, a fundamentally strong stock. Minda Corp, Ruchi Soya and Rane Madras were also buzzing in trade.

(Image credits: smiley-faces)