Sensex, Nifty erase early gains on profit booking; M&M down

Moneycontrol Bureau

10:55 am Market flat: Equity benchmarks continued to consolidate after early trade rally. The Sensex rose 20.06 points to 25514.43 and the Nifty gained 8.80 points at 7759.70.

About 1517 shares have advanced, 595 shares declined, and 173 shares are unchanged on the BSE.

10:40 am Asia Update: Asian stock markets traded in positive territory, taking cues from a positive finish in Wall Street overnight after the Federal Reserve raised its target federal funds rate to a range of 0.25 to 0.5 percent.

China's Shanghai Composite and Japan's Nikkei gained more than 1.5 percent followed by Hong Kong's Hang Seng with 0.8 percent upside.

10:30 am M&M falls again: The stock lost 1.5 percent after losing more than 5 percent in previous session after the Supreme Court put a ban on diesel vehicles (having a engine capacity of more than 2000cc) in Delhi.

While reacting to the news, Mahindra and Mahindra says vehicles affected by diesel vehicle ban represent 2 percent of monthly sales.

Executive Director Pawan Goenka says 2 percent loss will be reversed on the back of strong sales after ban is lifted.

"We are looking at options to see what we can do with engines under development. Currently we are working on 2.2 litre diesel engines at MRV facility in Chennai. We will look at redesigning products to bring them below 2 litre capacity," he details his plan.
10:15 am FII View: David Bloom, HSBC says the Federal Reserve delivers a dovish hike which should be easy for the emerging markets to digest.

He does not expect large reaction from Asian currencies. He feels dot plot was unchanged for 2016 suggesting 4 rate hikes.

Bloom sees a more supportive environment for the high-yielding rupee.

Also read - Less nervous of banking system now; like ICICI, SBI: Kotak

10:00 am Market Check

The market erased early gains on profit booking after pricing in Federal Reserve's rate hike. It rallied in previous three consecutive sessions ahead of Fed meet outcome. The Sensex erased more than 170 points gains from day's high and Nifty 50 points gains from intraday high.

The 30-share BSE Sensex fell 0.88 points to 25493.49 and the 50-share NSE Nifty rose 1.60 points to 7752.50. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 0.5-0.8 percent.

The market breadth was positive as about 1416 shares advanced against 517 declining shares on the BSE.