MUMBAI– Indian equity benchmarks closed in positive territory on Wednesday, defying mixed global cues and ongoing uncertainty over a pending trade agreement with the United States, as investors turned cautious ahead of the U.S. Federal Reserve’s policy announcement.
The BSE Sensex ended the session at 81,481.86, gaining 143.91 points or 0.18 percent. The index opened strong at 81,594.52, up from the previous close of 81,337.95, but traded within a narrow range throughout the day, hitting an intraday high of 81,618.96.
Meanwhile, the NSE Nifty closed at 24,855.05, up 33.95 points or 0.14 percent.
“Investor sentiment remained tepid due to the lack of clarity surrounding the India-U.S. trade deal, especially after President Trump’s latest remarks on potential tariffs,” said Ajit Mishra, SVP of Research at Religare Broking Ltd. “Additionally, markets were in a wait-and-watch mode ahead of the U.S. Federal Open Market Committee (FOMC) meeting. While no rate hike is expected, traders are closely watching the Fed’s commentary for clues on future policy direction.”
On the Sensex, L&T, Sun Pharma, NTPC, Maruti Suzuki, Bharti Airtel, Trent, and Axis Bank led the gains. On the downside, Tata Motors, Power Grid, Bajaj Finserv, and Kotak Mahindra Bank were among the laggards.
Banking stocks saw some pressure, dragging the Bank Nifty lower by 71 points, driven in part by selling in Punjab National Bank following its underwhelming first-quarter earnings report. In contrast, sectors such as information technology, fast-moving consumer goods (FMCG), and financial services posted modest gains.
Broader markets were mixed and volatile. While Nifty Next 50 and Nifty 100 ended slightly higher, the Nifty Midcap 100 and Nifty Smallcap 100 indices closed in the red.
The Indian rupee witnessed its steepest single-day fall since May 8, slipping to a five-month low. According to Dilip Parmar, Research Analyst at HDFC Securities, the decline was primarily fueled by month-end dollar demand and continued foreign fund outflows.
As investors brace for the Fed’s policy signal and await clarity on U.S.-India trade negotiations ahead of the August 1 deadline, markets may remain choppy in the near term. (Source: IANS)
