Sensex starts with small gains ahead of expected hike in US interest rates

The Sensex struck a positive note on Wednesday in the beginning on continued foreign inflows ahead of the expected hike in US interest rates. However, caution prevailed after retail inflation rose to 4-month high of 3.65% in February and that of wholesale prices shot up to a 39-month high of 6.55%.

The Sensex had soared 540.69 points in the previous three sessions following the BJP's landslide win in UP and Uttarakhand. The 30-share index was trading higher by 26.22 points, or 0.08%, at 29,468.85. A number of sectoral indices, led by consumer durables, healthcare, oil and gas, FMCG and infrastructure, were in the positive space.

The NSE index Nifty edged up by 3.40 points, or 0.03%, to 9,090.40. It had touched a life high of 9,087 on Tuesday. The increased buying momentum borne out by the fact that foreign funds purchased shares heavily lifted mood.

Among other Asian markets, Shanghai Composite rose 0.10% while Hong Kong's Hang Seng was down 0.18% in early trade on Wednesday. Japan's Nikkei shed 0.29%. The US Dow Jones Industrial Average also ended 0.21% down on Tuesday.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)