Sensex ends shy of 26K ahead of US Fed meet; Metal shares drag

Markets have closed the session on a marginally lower note as investors remained cautious ahead of unscheduled expedited meet of the US Federal Reserve later in the day.

The derivatives expiry for the month of November and the commencement of winter session of the Parliament kept the market players on the edge.

The Sensex closed lower by 49 points at 25,819 and the Nifty slipped 7 points at 7,849.

The broader markets, however, outperformed the benchmark indices- BSE Midcap and Smallcap indices surged between 0.4-0.5%.

Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services adds, "The Market may remain cautious on account of factors like expiry which is due on Thursday, 26th Nov and the start of the winter session on the same day.

In the meantime, global market may remain cautious as the focus is on the Fed rate hike which is likely to happen in Dec’15 – Jan’16."

On the macro-econimic front, Union Finance Minister Arun Jaitley will review the performance of Public Sector Banks (PSBs) on Monday.

Among global markets, European stocks declined after the release of mixed economic reports from Germany and France.

Asian markets fell as commodity producers tracked a slide in industrial metals and crude oil. Japanese markets were closed for the Labor Thanksgiving Day holiday.

US markets ended with gains on Friday, 20 November 2015 led by a rally in healthcare, consumer and technology stocks.

Back home, BSE FMCG and Metal indices plunged over 1%. However, Consumer Durables sector gained over 1%. Metal shares reeled under pressure as London copper slipped to 6 year low today.

Hindalco Industries and Vedanta were the top two Sensex losers, down between 3-4%.

Both the stocks will be excluded from BSE Sensex index. Adani Ports and Special Economic Zone (SEZ) and Asian Paints would be added in the 30-share S&P BSE Sensex index with effect from December 21. Both the scrip were up 2-3%.

Shares of Sun Pharma dipped nearly 2% at Rs 714, its lowest level since July 2014, on the BSE in intra-day trade today.

According to media reports, US-based Taro Pharmaceutical Industries, subsidiary of Sun Pharmaceuticals here, and other group affiliates are investing in a $225-million wind energy project in America.

Other notable losers were Tata Steel, ITC, ONGC, HDFC and Cipla. GAIL surged almost 4%.

GAIL (India) s rallied 23% to Rs 346 from Rs 282 on November 13, after Mahanagar Gas Ltd (MGL) has filed draft papers with the capital markets regulator Securities Exchange Board of India (Sebi) to raise funds through a public offer. GAIL and British Gas Asia each hold 49.75% in MGL.

Axis Bank has opened a representative office in Dhaka.

Shares of Axis Bank went up by almost 1%. Among key mid-cap shares, Balaji Telefilms, Petronet LNG, Vakrangee, Strides Shasun, RPG Life Sciences and Sri Adhikari Brothers were among 95 stocks which touched their respective 52-week high on the BSE in intra-day trade today.

Strides Shasun (formerly Strides Arcolab) surged 4% to Rs 1,414, also its record high on the NSE in early morning trade, after the company said it has received approval from the US Food and Drug Administration (USFDA) to market Dutasteride capsules, 0.50 mg, used in treating enlarged prostate gland, in the American market.