Sensex Trades Flat Ahead of U.S. Federal Reserve Meeting
Indian equity indices opened flat on Wednesday, reflecting a mixed trend in global markets as investors await the U.S. Federal Reserve’s monetary policy decision later today.
At 9:42 a.m., the Sensex was up 38 points, or 0.05%, at 83,117, while the Nifty gained 10 points, also 0.05%, at 25,430.
Early trading saw banking stocks leading the way, with the Nifty Bank rising 237 points, or 0.45%, to reach 52,424.
Midcap and small-cap stocks also traded flat, with the Nifty midcap 100 index down 6 points at 60,174, while the Nifty small-cap 100 index increased by 66 points, or 0.34%, to 19,531.
Sectoral indices showed gains in Auto, PSU Bank, financial services, FMCG, energy, infrastructure, and private banks, while IT, pharma, metals, and real estate lagged.
Among Sensex constituents, the top gainers included Bajaj Finance, Bajaj Finserv, UltraTech Cement, SBI, Power Grid, ITC, HDFC Bank, IndusInd Bank, Tata Motors, and Kotak Mahindra Bank. Conversely, Tech Mahindra, Infosys, TCS, Wipro, HCL Tech, Asian Paints, Sun Pharma, Tata Steel, and Bharti Airtel were the biggest losers.
Market experts noted that the upcoming Fed rate decision has led to a cautious atmosphere in global markets. “The commentary accompanying the Fed’s decision may be more significant than the action itself. An ideal scenario would be a 25 basis point rate cut with a dovish outlook suggesting further cuts ahead. Strong retail sales data coupled with a weakening labor market could support this possibility,” they said.
They also advised adjusting investment strategies, recommending reducing exposure to mid and small caps while increasing investments in large caps for better medium to long-term performance.
On September 17, Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) bought shares worth a net ₹482.69 crore, while Domestic Institutional Investors (DIIs) purchased shares worth ₹874.15 crore.
On Tuesday, domestic equity indices closed with modest gains, with the Nifty settling above the 25,400 mark after hitting a low of 25,352 earlier in the day. The Sensex rose by 90.88 points, or 0.11%, to close at 83,079, and the Nifty increased by 34.80 points, or 0.14%, to finish at 25,418.55.
