Sensex, Nifty Close Higher on Gains in Metal, PSU Bank Stocks
Mumbai — Indian equity benchmarks ended higher Wednesday, supported by gains in metal, PSU bank and consumer durables stocks, even as investors remained cautious ahead of the U.S. Federal Reserve’s policy decision.
The Sensex rose 347.14 points, or 0.45 percent, to close at 77,155.62. The Nifty gained 96.55 points, or 0.4 percent, to settle at 24,085.70, reclaiming the 24,000 mark on buying in select heavyweight stocks.
Analysts said the 24,100 to 24,200 zone has emerged as the immediate resistance area for the Nifty.
“On the downside, the 24,000 psychological mark is expected to act as an important immediate support level, having previously served as a key hurdle,” an analyst said.
Among Nifty stocks, Trent, Bharat Electronics and Hindalco Industries were among the top gainers, helping lift broader market sentiment.
The broader market also closed in positive territory. The Nifty MidCap index advanced 0.52 percent, while the Nifty SmallCap index rose 0.79 percent.
Among sectors, the Nifty PSU Bank index outperformed, followed by the Nifty Consumer Durables and Nifty Metal indices. The Nifty Auto and Nifty Realty indices were the biggest laggards of the session.
Market participants largely adopted a wait-and-watch approach ahead of the outcome of the U.S. Federal Open Market Committee meeting. The Federal Reserve is widely expected to keep its benchmark interest rate unchanged at 3.5 percent to 3.75 percent.
Investors are closely watching the central bank’s comments on inflation, economic growth and the future path of interest rates for signals about the health of the world’s largest economy.
The Fed’s outlook is also expected to provide insight into the possible impact of recent geopolitical tensions on global growth and financial markets.
“Until investors gain greater confidence in the durability of the agreement and the broader de-escalation process, markets are likely to remain sensitive to geopolitical headlines, with the risk of periodic volatility and sharp reversals persisting despite the recent improvement in sentiment,” a market expert said.
Meanwhile, the rupee traded largely flat near 94.50 as both the Dollar Index and crude oil prices remained range-bound, keeping currency markets in a wait-and-watch mode.
“For the near term, the rupee is expected to trade within a range of 94.00–94.85, with Fed commentary likely to provide the next directional trigger,” an analyst said. (Source: IANS)
