Sensex, Nifty open in green zone amid mixed global cues
Indian benchmark indices opened in green zone on Wednesday after two days of consecutive losses, amid mixed global cues and investor optimism of a US Fed rate cut.
Mumbai: Indian benchmark indices opened in green zone on Wednesday after two days of consecutive losses, amid mixed global cues and investor optimism of a US Fed rate cut. As of 9.30 am, Sensex advanced 231 points, or 0.27 per cent at 84,898 and Nifty added 66 points, or 0.26 per cent to 25,906. The broadcap indices performed in line with the benchmarks, with the Nifty Midcap 100 up 0.47 per cent and the Nifty Smallcap 100 adding 0.50 per cent.
All the sectoral indices on NSE were trading in the green, with metal, power and realty being the major gainers, up around 0.5 per cent. Analysts said that liquidity has kept valuations high, justifying selling in the broader markets. A major concern is the excessive delay in the finalisation of the US-India trade deal. US President Donald Trump’s statement on action against India for dumping rice in the US can hurt traders’ sentiments.
Traders expect a third consecutive Fed rate cut on Wednesday (US time) and will focus on the central bank’s latest dot plot, economic projections, and Chair Jerome Powell’s comments, according to reports. Market fundamentals are turning in favour of India, while higher growth and corporate earnings are achievable in the quarters ahead. The fiscal and monetary stimulus provided this year have started producing results, they added. The US markets ended mostly in the red zone overnight, as Nasdaq advanced 0.13 per cent, the S&P 500 dropped 0.09 per cent, and the Dow dipped 0.38 per cent.
Most of the Asian markets were trading lower amid investor caution ahead of US Federal Reserve interest rate decision following a weak session on the Wall Street. Further, China’s inflation data also influenced traders’ sentiments as consumer prices edged up 0.7 per cent from a year earlier, its highest level since February last year.
In Asian markets, China’s Shanghai index dipped 0.72 per cent, and Shenzhen dropped 0.56 per cent, Japan’s Nikkei dipped 0.38 per cent, while Hong Kong’s Hang Seng Index lost 0.31 per cent. South Korea’s Kospi added 0.17 per cent. On Tuesday, foreign institutional investors (FIIs) sold equities worth Rs 3,760 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 6,225 crore.
