Indian benchmark indices opened sharply higher on Wednesday despite mixed global cues and renewed geopolitical tensions in West Asia, as investors looked ahead to the US Federal Reserve’s policy decision later in the day.
The BSE Sensex rang the opening bell above 77,450, soaring about 700 points, while the NSE Nifty50 climbed close to 200 points and traded over 24,150, as of 9:15 AM.
GIFT Nifty Signals Positive Start
Domestic equities began the session on a firm footing after GIFT Nifty traded at 24,231, up 132 points ahead of the market opening, indicating that Indian benchmarks could outperform several regional peers.
At around 9:03 AM, the Sensex was trading at 77,261.06, up 495.14 points or 0.64 per cent, while the Nifty gained 202.80 points, or 0.85 per cent, to 24,188.15.
Investors are expected to closely monitor the US Federal Reserve’s interest rate decision, developments in West Asia and movement in commodity prices through the trading session.
Asian Markets Mixed Amid West Asia Tensions
Markets across Asia traded on a mixed note as investors assessed the impact of fresh geopolitical tensions in West Asia on global energy markets.
Japan’s Nikkei 225 declined 0.49 per cent, while South Korea’s Kospi fell 2.08 per cent in morning trade. In contrast, Hong Kong’s Hang Seng advanced 1.45 per cent, supported by buying in select heavyweight stocks.
Wall Street Ends Mixed Ahead Of Fed Decision
US equities ended Tuesday’s session with a mixed performance as investors positioned themselves ahead of the Federal Reserve’s monetary policy announcement.
The Dow Jones Industrial Average gained 1.03 per cent, while the S&P 500 added 0.21 per cent. However, the technology-heavy Nasdaq Composite slipped 0.22 per cent.
Market participants widely expect the US central bank to keep interest rates unchanged.
Oil Prices Surge; Gold Slips Before Fed Outcome
Crude oil prices rallied sharply after reports of a ballistic missile attack targeting a US military base in West Asia heightened geopolitical concerns and clouded ongoing diplomatic efforts in the region.
Brent crude’s July futures climbed 4.32 per cent to $87.72 per barrel in early trade.
Meanwhile, precious metals witnessed subdued movement ahead of the Fed decision. Gold futures eased 0.33 per cent, while silver futures edged 0.13 per cent higher.
Analysts See Range-Bound Trade Until Breakout
Market experts believe benchmark indices remain in a consolidation phase, with investors waiting for stronger triggers before taking fresh positions.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the previous session reflected indecisiveness, with benchmark indices moving within a narrow range despite volatility during the monthly July derivatives expiry.
“The broader market structure continues to remain neutral, suggesting investors are awaiting a decisive breakout,” he said.
According to Chouhan, a sustained move above the 24,050 level on the Nifty could attract fresh buying and potentially lift the index towards the 24,150-24,200 zone. However, he cautioned that a fall below 23,900 may intensify selling pressure and push the benchmark towards lower support levels.
He also advised investors to remain selective, suggesting that fresh long positions may offer a better risk-reward opportunity on declines rather than chasing rallies, while using any near-term pullback to trim weaker positions.
With volatility expected to remain elevated, analysts believe global cues and sector-specific earnings are likely to determine the market’s trajectory over the coming sessions.
