Markets remain choppy; Nifty hovers around 7,750

After a gap up opening, markets have erased their early gains on account of profit booking. The selling pressure on the index heavyweights such as Tata Motors, Axis Bank, ITC has dragged the markets lower.

At 11:30 am, the S&P BSE Sensex was down by 5 points at 25,488 and the Nifty50 gained 4 points at 7,754.

Overnight, the US Federal Reserve increased its benchmark interest rate by 25 basis points as widely expected at the conclusion of its two-day meeting on Wednesday. However, the “dovish” stance of the US Fed stimulated a global rally after the Fed said the further tightening of the monetary policy will be gradual.

Meanwhile, the global ratings agency Fitch ratings said that India is better placed to handle the impact of the Fed lift off than its peers.

The Finance Minister supported the above sentiment. He said that the end of uncertainties will actually help policy makers in emerging economies.

On the currency front, the rupee appreciated by 13 paise at 66.60 against the US dollar on increased selling of the American currency by exporters even as the US Federal Reserve raised interest rates for the first time in nearly a decade.

With the uncertainty surrounding the Fed rate hike coming to an end, the immediate concern for the investors is the passage of Goods and Services Tax (GST) Bill. With barely a week remaining for the winter session of Parliament to conclude, the deadlock surrounding the GST Bill doesn’t seem to end anytime sooner.

National Stock Exchange of India Ltd (NSE)

Bombay Stock Exchange - BSE

ITC Limited

Tata Motors