Opening Bell: Markets open marginally weak over unchanged US Fed rates

The Key indices on Thursday opened weaker than expected over the US Federal Reserve's decision to keep the rates unchanged. 

BSE Sensex gained 6 points to open at 32406.42 points, NSE Nifty lost 1.5 points to open at 10,139.6 points. 

The US Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite a recent bout of low inflation.

The Fed, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of US Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis.

However, pharma shares saw a steep hike on indices as shares of Dr. Reddy’s (up 3.31%), Cipla (up 1.67%), Sun Pharma (up 1.49%), Lupin (up 1.26%), Bajaj Auto (up 1.07%), and Tata Steel (up 0.84%) were the top gainers of morning trade.

Novartis India soared 5% ahead of a board meet next week to consider a share buyback.

The rupee fell sharply by 26 paise to 64.53 against the dollar at the interbank forex market in early trade today as the greenback strengthened overseas.

Forex dealers said the greenback rose against other currencies overseas as expectations of rate hike by the US Federal Reserve grew stronger.