Telecom stocks hold Sensex, mkts await Fed meet outcome
The S&P BSE Sensex today reversed early losses to end with a marginal gain of over 22 points, or 0.1%, to 19,246, on the back of a surge in telecom stocks, amid uncertainty over the outcome of the US Federal Reserve policy meeting.business Updated: Jun 19, 2013 23:30 IST
The S&P BSE Sensex on Wednesday reversed early losses to end with a marginal gain of over 22 points, or 0.1%, to 19,246, on the back of a surge in telecom stocks, amid uncertainty over the outcome of the US Federal Reserve policy meeting.
The broader Nifty also moved up by 9 points, or 0.2%, to 5,822.
Investors were reluctant to add big positions and mostly stayed on sidelines ahead of the Fed meeting, brokers said . Expectations are high that Fed chief Ben Bernanke will give a guidance on quantitative easing (QE) and some hints on when the monthly asset purchases will tapered off, they added.
Shares of telecom companies remained in demand after the Telecom Regulatory Authority of India (TRAI) decided not to make roaming services free. Bharti Airtel rose 2.8%, RCOM gained 2.4% and Idea Cellular jumped 4.5%.
"FDI is the trigger (for telecom stocks to gain in Wednesday's trading)," saidAlex Mathews, research head, Geojit BNP Paribas Financial Services.
Analysts advised investors to invest in telecom stocks for long-term gains.
"For the short term I would avoid (telecom stocks) but for the long term one can invest," says Mathews.
"I am neutral on RCom and Idea Cellular," says Ankita Somani, research analyst, Angel Broking.