Indian markets traded volatile as investors focused on the upcoming Fed policy later on Wednesday. The Street anticipates a rate hike of 25 bps and expects a less aggressive policy stance to emerge with easing inflation. Also, the Fed’s outlook on banks’ contagion risks will be closely watched. Both the Sensex and the Nifty 50 ended in the green, though gains were limited. Smallcap stocks fared better. In the sectoral index, maximum buying was seen in healthcare and auto stocks.
Sensex It closed at 58,214.59, up 139.91 points or 0.24%. The Nifty 50 jumped 44.40 points or 0.26% to close at 17,151.90. Bank Nifty also climbed more than 104 points.
In the broad market, on BSE, little hat The index rose nearly 147 points, while the Sensex Next 50 gained over 228 points. There was a slight gain in the midcap index.
In terms of sectoral indices, BSE Auto and Healthcare indices jumped up to 112 points and 179 points respectively. Broad-based buying was seen but with marginal gains.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Remaining in volatile trade, domestic markets managed to remain positive, fueling optimism that the global banking system issue is behind us. Additionally, volatility from western markets brought Ahead of the Fed policy announcement and higher UK inflation release, market sentiments were tested. Markets have confirmed a 25 bps rate hike by the Fed, and an in-line and less aggressive policy stance attracted bulls. Will do.”
Bajaj Finserv and Bajaj Finance were the top gainers with gains of over 2% each. Sun Pharma closed with a gain of 1.7% and IndusInd Bank by 1%.
Top losers on Sensex were NTPC down 1.5% followed by Axis Bank, Nestle, HCL Tech and HDFC Bank.
Going forward, said Mitul Shah – Head of Research at Reliance Securities, markets will closely follow global cues and developments in the US and European banking systems. Domestically, the CPI and WPI have cooled down and the trade deficit has narrowed. Brent crude prices have corrected 10% since the start of the US banking crisis, which combined with cheaper crude from Russia and a fall in natural gas and coal prices is a huge headwind for the Indian economy. However, unseasonal rains this week have caused widespread crop damage across large areas of India. This is likely to increase food prices in the coming months. All eyes will be on the US Fed’s monetary policy meeting and interest rate decision tonight.
On Nifty 50, Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities said, Nifty index witnessed sideways momentum throughout the day but managed to close in the green. The index remains in buy-on-dip mode as long as it remains above 17,000. The immediate hurdle on the upside lies at 17,200 where highest open interest has been created on the call side. The index once crossed the resistance and would witness a bullish movement towards 17,500 level.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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