Sensex Rises 50 points, Nifty Above 17,800 Ahead of US Fed Policy Outcome

Sensex Today: The benchmark Sensex and Nifty indices started on a weak note on Wednesday morning after a two-day rally. Key indices Nifty50 was flat above 17,800 levels and the S&P BSE Sensex was flat at 59,707 levels.

Broader markets, however, outperformed benchmark indices as Nifty MidCap 100 and Nifty SmallCap 100 climbed up to 0.4 per cent.

All sectors started trade on a volatile note as they swung between gains and losses. Nifty Auto, Nifty Pharma, Nifty FMCG indices opened with marginal gains. On the other hand, Nifty Bank and Nifty Realty indices were bogged down in trade.

While Nestle India, L&T, M&M, Tata Steel, attempted to trim losses for benchmark indices; Infosys, IndusInd Bank, TCS, HDFC pulled them down.

Anand James – Chief Market Strategist at Geojit Financial Services, said: “The bullish exhaustion that emerged after entering the 17,860-960 band hints at a full-fledged reversal, but we are inclined to look for a bounce back from the 17,700 vicinity. However, a close below the same today could substantially increase the odds of a 17000-16650 plunge, though one may wait for a break of 17,430 as confirmation.”

Global Cues

Stocks in Asia sank and bond yields were elevated on Wednesday, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve later in the day. Japan’s Nikkei dropped 1.26% and touched a two-week low. Australia’s benchmark share index slid 1.35% and South Korea’s Kospi fell 0.9%.

Tokyo stocks opened lower Wednesday, extending falls on Wall Street ahead of a Federal Reserve meeting widely expected to produce a three-quarter-point interest rate hike.

Wall Street ended Tuesday lower as the eve of a U.S. Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the U.S. central bank wants to tame.

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