Pre-US Fed rate effect: Markets close higher in volatile trade

Benchmark stock indices Sensex and Nifty closed higher in a highly volatile trade on Monday as investors turned cautious ahead of the US Federal Reserve interest rate decision.

After gyrating between gains and losses, the 30-share BSE Sensex settled higher by 104.99 points or 0.14 per cent at 72,748.42. As many as 14 Sensex shares closed in the green while 16 in the red. The index moved between a high of 72,985.89 and a low of 72,314.16.

The broader Nifty of the NSE rose by 32.35 points or 0.15 per cent, to close at 22,055.70 as 21 of its components advanced and 29 declined. The gains were primarily led by metal, auto and commodity shares while IT and Teck shares capped the upside. Reliance Industries which rebounded more than 1.5 per cent from the day’s low was the major contributor to Sensex and Nifty gains. RIL settled higher by 1.45 per cent.

Tata Steel rose the most by 5 per cent among Sensex shares. Mahindra & Mahindra, JSW Steel, Tata

Motors, Axis Bank, Sun Pharma, Reliance Industries and Maruti were the other biggest gainers.

IT shares on the other hand declined amid concerns over interest rates in the US market. Infosys fell the most by 1.99 per cent among Sensex shares. Tata Consultancy Services, Titan, Wipro, Hindustan Unilever and Nestle also declined.

“The Indian market followed the positive Asian peers with a mixed bias. Domestic issues, like mutual fund stress tests, hardly brought any negative views, but premium valuation remains as a concern. Midcap & small caps are attempting to scroll up, however consolidation persists,’’ said Vinod Nair, head, research, Geojit Financial Services.