Sensex And Nifty Open Higher On Wednesday As Investors Eye US Fed Rate Decision

Indian benchmark indices opened in the green on Wednesday, recovering from two consecutive days of losses, as investors weighed mixed global cues and optimism over a possible US Federal Reserve rate cut.

At 9:30 AM, the Sensex gained 231 points, or 0.27 per cent, to 84,898, while the Nifty added 66 points, or 0.26 per cent, to 25,906.

Broad market indices mirrored the benchmarks, with the Nifty Midcap 100 up 0.47 per cent and the Nifty Smallcap 100 rising 0.50 per cent.

All sectoral indices on the NSE opened in the green, with metal, power, and realty emerging as the top gainers, each up approximately 0.5 per cent.

Analysts noted that liquidity levels have kept valuations high, encouraging selective selling in the broader markets.

Concerns remain over delays in the finalisation of the US-India trade deal, particularly following US President Donald Trump’s remarks on action against India for rice exports, which could weigh on investor sentiment.

Global Cues Influence Market Sentiment

Traders are awaiting a third consecutive Fed rate cut, expected on Wednesday (US time), focusing on the central bank’s dot plot, economic projections, and remarks from Chair Jerome Powell.

While US markets ended mostly lower overnight, the Nasdaq rose 0.13 per cent, the S&P 500 fell 0.09 per cent, and the Dow dropped 0.38 per cent.

Asian markets were mostly subdued, with China’s Shanghai index down 0.72 per cent and Shenzhen 0.56 per cent. Japan’s Nikkei declined 0.38 per cent, Hong Kong’s Hang Seng fell 0.31 per cent, while South Korea’s Kospi added 0.17 per cent.

Rising consumer prices in China, which hit 0.7 per cent year-on-year, further affected regional sentiment.

On Tuesday, foreign institutional investors (FIIs) sold equities worth Rs 3,760 crore, while domestic institutional investors (DIIs) were net buyers of Rs 6,225 crore, reflecting continued domestic confidence in Indian markets.

Analysts remain optimistic that India’s strong fundamentals, combined with fiscal and monetary stimulus, will support higher growth and corporate earnings in the coming quarters, despite global uncertainties.

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