Indices Recover From Day’s Low On Wednesday Ahead Of Fed Meeting
The 30-share BSE benchmark Sensex rose 34 points or 0.05 per cent to settle at 69,584. The broader NSE Nifty rose 12 points or 0.06 per cent to end at 21,035.
From the Sensex pack, NTPC, Power Grid, M&M, and L&T were the top gainers, rising 2-3.5 per cent. L&T, Sun Pharma, SBI, Titan and Tata Steel also closed higher. On the flip side, TCS, Infosys, Axis Bank and Bajaj Finserv closed in the red.
On the sectoral front, Nifty Auto, pharma, and healthcare closed over 1 per cent higher. Whereas Nifty IT remained the top loser, dragged by TCS, Infosys and Tech Mahindra. In the broader market, Nifty Midcap100 and Nifty Smallcap100 gained 0.9 per cent each.
The market capitalisation of all listed companies on BSE surged by Rs 1.44 lakh crore to Rs 351.2 lakh crore. The market breadth was skewed in the favour of the bulls. About 2,129 stocks gained, 1,646 declined and 115 remained unchanged on the BSE.
FII and FPIs, on Wednesday, saw a net purchase of Rs 4,710.86 crore in the cash segment. A total of Rs 1,4562.41 crore was sold against a total purchase of Rs 19,273.27 crore. Domestic institutional investors saw net sales of Rs 958.49 crore in the cash segment. A total of Rs 9,655.66 crore was sold against a total purchase of Rs 8,697.17 crore.
Fed Policy Decision - The Fed takes centre stage on Wednesday, where it will announce its rate decision after its two-day policy meeting. Analyst expectations are for policymakers to keep rates on hold, unfazed by reading on US inflation that came largely in line with consensus.
Meanwhile, A simultaneous challenge emerges as retail inflation stands at 5.5 per cent, still much above the RBI's 4 per cent target. This inflationary pressure, driven by high food inflation and the looming spectre of El Niño, is poised to persist. The market's focus now shifts to the upcoming FOMC meeting. The recent global upside is getting far stretched in anticipation of a rapid fall in the US Fed rate in CY2024.
Technically, the important key resistances placed in October Nifty future are at 21,035 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 21,088 – 21,202 levels. Immediate support is placed at 20,880 – 20,808 levels.
