The markets after exhibting firm trend for most part of the trading day, turned a wee bit volatile in late noon trades.The Sensex pared some of its gains in the last hour of trade, however, bounced back to end at 20,466, up 120 points.
Earlier in the day, positive global cues and robust corporate earnings buoyed investor sentiment.
The BSE Sensex touched a high of 20,539 but slipped in mid-noon trades. Thereafter, it was volatile in a narrow range and slipped 112 points to a low of 20,426.
The Nifty ended up 52 points at 6,161.
Global markets are waiting for the Federal Reserve's meet due today. Asian markets ended up as Deutsche Bank raised estimates for Kospi. Hang Seng surged 2% at 24,145. In Europe, CAC added 0.4% at 3,883.
Back home, investors await the listing of PSU company, Coal India which will be listed on Thursday.
"I expect Coal India to list between Rs 280-290 and advise investors who have just invested for listing gains to exit at Rs 290. Those who want to take a long-term call, buy Coal India below Rs 280", says S P Tulsian, CEO and Editor, Premium Investments.
On Tuesday the RBI raised repo and reverse repo rate by 25 bps each.
"The RBI has signaled a pause in rate hike for December policy review, unless the inflation spirals out of control or there more-than-expected expansion in GDP or IIP activity.
"The markets are relieved that there will be no further rate hike for next three months, which will act as a positive trigger", says Phani Shekhar, Fund Manager,
Angel Broking.
Metal space shone in trades today and the BSE metal index ended up 1.7% at 17,112. Sterlite jumped 4% to Rs 176. Tata Steel and Jindal Steel added 2% each to Rs 611 and Rs 710, respectively.
Auto and banking indices gained 1% each at 10,077 and 14,682, respectively.
Banking stocks recovered after yesterday's RBI policy reveiew. Emkay Global in a report said, " home loan proposals do not look very negative for banks.
Most of the PSU banks have LTVs between 70-80%, so would not be affected in big way. The impact will be marginally higher for private banks".
However, the BSE oil & gas space declined 0.4% to 10,848. Market heavyweight, Reliance, pared gains and ended at Rs 1,066.
Tata Motors gained 2.7% at Rs 1,185. ACC jumped to its highest in 52-weeks after reporting a 13% jump in cement dispatches in October. The stock ended at Rs 1,084.
SBI and HDFC added 2% each to Rs 3,273 and Rs 715, respectively.
BHEL, ITC and Larsen & Toubro were some of the other gainers in the market.
Meanwhile, communication stocks fell. Reliance Communications dropped 1% to Rs 180. Bharti Airtel slipped marginally to Rs 328.
BSE market breadth was positive. Out of 3,113 stocks traded, 1,651 advanced while 1,318 declined.
