Sensex, Nifty Stuck In Narrow Range Amid Choppy Trade

Domestic stock markets swung between gains and losses on Wednesday amid cautious gains in Asian equities, ahead of a policy statement by the Federal Reserve in which the US central bank is expected to strike a dovish stance. The S&P BSE Sensex index dropped 281 points to 38,336.03 after rising to as high as 38,617.03, having started the session down 65.80 points (0.17 per cent) at 38,427.15. The broader NSE Nifty 50 benchmark was stuck in a range of 78.55 points, between 11,262.85 and 11,341.40, after opening down 23.65 points at 11,276.90.

At 9:32 am, the Sensex traded 56.16 points - or 0.15 per cent - lower at 38,436.79, while the Nifty was down 31.55 points - or 0.28 per cent - at 11,269.00.

Analysts awaited corporate earnings for near-term cues. Bharti Airtel, Dr Reddy's Laboratories, IndiGo and Maruti Suzuki are slated to report their financial results for the April-June period later in the day, and Reliance Industries on Thursday.

Share markets elsewhere in Asia registered mild gains, with MSCI's broadest index of Asia Pacific stocks outside Japan last seen trading 0.18 per cent higher. 

However, Japan's Nikkei 225 benchmark was down 0.79 per cent on a rising yen and weak start to corporate earnings season.

China's Shanghai Composite, Hong Kong's Hang Seng and South Korea's KOSPI barometers were up 1.16 per cent, 0.14 per cent and 0.33 per cent respectively at the time.

Some expect the US central bank to open the door to a higher tolerance for inflation. A $1-trillion US fiscal rescue package is also at an impasse as a Friday deadline to extend unemployment benefits looms.

The Fed's forward guidance probably determines the next move and the extension of several emergency lending facilities on Tuesday fuelled anticipation of a particularly dovish tone.

On Tuesday, the Sensex had ended 558.22 points - or 1.47 per cent - higher at 38,492.95, and the Nifty settled at 11,300.55, up 168.75 points - or 1.52 per cent - from its previous close.