Sensex edges higher in cautious trade; all eyes on US Fed meet outcome

Mumbai: The BSE benchmark Sensex gave up its strong early gains but still managed to end in green as good buying in HDFC, ITC and RIL shares offset losses in Tata Steel, HUL and SBI stocks.

Traders remained cautious in view of weak cues from other Asian markets ahead of the US Federal Reserve policy outcome later in the day.

The 30-share index rose over 197 points in morning trade to hit a high of 35,357.15, buoyed by a slew of positive factors like record GST collections in April, mostly encouraging corporate earnings and strong auto sales data.

The Sensex later lost momentum to slip to 35,072.42 on profit-booking in recent gainers. It finally ended at 35,176.42, up 16.06 points, or 0.05 per cent.

The gauge had gained 659.09 points in the previous three sessions on the back of widespread gains triggered by encouraging corporate results.

The broader NSE Nifty shuttled between 10,784.65 and 10,689.80, before ending 21.30 points, or 0.20 per cent, lower at 10,718.05.

Brokers said markets are expected to be range-bound as investors are awaiting the outcome of the US Fed's two-day meeting later in the day as well as results of some more bluechips.

Domestic institutional investors (DIIs) bought shares worth a net of Rs 261.98 crore, while foreign portfolio investors (FPIs) sold net shares worth Rs 385.47 crore on Monday, provisional data showed.

Financial markets were shut yesterday on account of 'Maharashtra Day'.