market

Sensex, Nifty trade lackluster ahead of US FOMC outcome


Indian equity markets opened flat on Wednesday ahead of the US Federal Reserve‘s policy outcome later in the day. Inflation in the US eased to a more than two-year low in May, which could lead the Federal Reserve to pause and skip a rate hike.

The BSE Sensex was trading 13 points or 0.02% higher at 63,156. Nifty50 was trading at 18,723, up 7 points or 0.04% at around 9.23 am.

From the Sensex pack, Tata Steel, Tata Motors, Power Grid, Titan, Nestle, and Maruti opened with gains, while HUL, Bharti Airtel, Tech Mahindra, Bajaj Finserv, Infosys, and TCS opened with cuts.

Anupam Rasayan shares rose nearly 6% after the company signed a letter of intent worth $265 million with a Japanese specialty chemical firm. Shares of Nazara Technologies opened lower after Europe-based financial services group Societe Generale offloaded 400,000 shares at Rs 681.74 apiece.

On the sectoral front, Nifty Metal surged 1.45% and Nifty PSU Bank rose 0.33%. Whereas, financial, FMCG, IT, pharma, and healthcare sectors opened with cuts. In the broader market, Nifty Midcap 100 rose 0.05% and Nifty Smallcap 100 gained 0.26%.

Experts View
“Since the market momentum continues to be strong, it can take the Nifty to a new record high, which is only 172 points away. Global support from the mother market US and strong domestic macros have the strength to usher in a new record,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

“Even though US CPI inflation has declined to 4%, the core inflation, which is more significant, is stuck at around 5%. Therefore, the Fed is likely to sound hawkish even while pausing rates today,” Vijayakumar added.

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Aditya Gaggar, Director of Progressive Shares, said,” After a DOJI formation, Nifty50 has formed a strong candle which indicates reversal of trend and the ongoing rally is likely to breach its immediate hurdle of 18,780 followed by the record levels of 18,880 while downside is protected at 18,560.”

Global Markets
Wall Street stocks rallied Tuesday after data showed cooling in US inflation, bolstering expectations that the upcoming Federal Reserve monetary decision will be benign. The Dow Jones Industrial Average finished up 0.4%. The broad-based S&P 500 advanced 0.7%, while the tech-rich Nasdaq Composite Index jumped 0.8%.

Asian shares rose on Wednesday. Tokyo’s Nikkei rose 1.26% to a fresh 33-year high, helped by expectations of extended ultra-loose policy from the Bank of Japan. China’s Shanghai Composite rose 0.24%, while Korea’s Kospi declined 049%.

FII Tracker
Foreign institutional investors bought Rs 1,678 crore worth of Indian equities on a net basis on Tuesday, while domestic investors sold Rs 203 crore of shares, as per provisional NSE data.

Oil Dips
Oil prices inched lower on Wednesday after industry data showed an unexpected rise in US crude stocks, signalling weak demand to markets already worried about recession and disappointing Chinese economic data.

Brent crude futures eased 27 cents, or 0.4%, to $74.01 a barrel. US West Texas Intermediate (WTI) crude was at $69.13 a barrel, down 29 cents, or 0.4%.

Currency watch
The Indian rupee fell 3 paise to $82.28 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.02% to 103.31 level.

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(With inputs from agencies)



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