Sensex flat on caution ahead of Fed meet outcome

The BSE Sensex traded flat ahead of conclusion of two-day U.S. Federal Reserve meeting later in the day that is expected to result in the start of a rollback of its stimulus. (Read: What to expect from Fed)

The BSE Sensex traded up 30 points, while the broader NSE index was up 5 points tracking weak Asian peers with MSCI's broadest index of Asia-Pacific shares outside Japan off a slight 0.3 per cent.

Expectations are that the Federal Open Market Committee will be measured with any cuts to its $85 billion in monthly asset buying, while also seeking to reassure investors that the day of an actual policy tightening is still distant.

Goldman Sachs remained "underweight" on Indian shares in its Asia Pacific portfolio and maintained its Nifty target at 5,700, saying the macro outlook remains challenged, which coupled with tighter financial conditions, may lead to lower valuations. (Read full story)

Shares in India's Dr.Reddy's Laboratories were up 1.4 per cent following the U.S. drug regulator's approval for selling a generic version of Celgene Corp's anti-cancer drug Vidaza. DRL shares rose 3.6 per cent on Tuesday. (Read more)


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