- Indian indices opened higher, tracking global cues and easing crude.
- Global markets exhibited mixed performance before the US Fed decision.
- Crude oil prices dropped below $80 on potential US-Iran deal.
Indian benchmark indices opened in positive territory on Wednesday, tracking supportive global cues and easing crude oil prices ahead of the US Federal Reserve’s policy decision later in the day.
At 9:15 AM, the BSE Sensex was trading around 76,850, up 60 points, while the NSE Nifty 50 stood at over 24,000, gaining 20 points.
Investor sentiment remained influenced by softer crude oil prices, expectations of unchanged US interest rates and mixed global market performance ahead of the Federal Open Market Committee (FOMC) outcome.
GIFT Nifty Points To Firm Start
The GIFT Nifty, an early indicator of the Nifty 50’s performance, was trading modestly higher in early trade.
The futures contract was quoted at 24,025.50, up 26 points, indicating a positive start for domestic equities.
Benchmarks Advance In Pre-open Trade
During the pre-open session between 9:00 AM and 9:14 AM, benchmark indices traded higher.
At around 9:02 AM, the Sensex stood at 76,949.97, rising 141.49 points, or 0.18 per cent. The Nifty advanced 87.45 points, or 0.36 per cent, to 24,076.60.
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Asian Equities Mixed Ahead Of Fed Verdict
Asian equities traded on a mixed note as investors remained cautious ahead of the US Federal Reserve’s policy announcement.
Japan’s Nikkei 225 gained 0.69 per cent, while South Korea’s Kospi declined 0.29 per cent.
Broader regional sentiment remained subdued, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling about 0.3 per cent, weighed down by weakness in technology-heavy markets in Taiwan and South Korea. Japan’s market outperformed regional peers and remained in positive territory.
Dow Hits Record High; S&P 500, Nasdaq Slip
US markets delivered a mixed performance overnight.
The Dow Jones Industrial Average rose 328.64 points, or 0.64 per cent, to close at a record 51,999.67.
In contrast, technology stocks pressured broader indices, with the S&P 500 ending 0.57 per cent lower and the Nasdaq Composite falling 1.15 per cent.
Global Cues: Fed, Iran Deal In Spotlight
Global investors largely remained on the sidelines ahead of the US Federal Reserve’s rate decision, scheduled for release later in the day.
The rate-setting committee is widely expected to keep the federal funds target rate unchanged at 3.5–3.75 per cent. Market participants will closely monitor policymakers’ comments on inflation, economic growth and the future trajectory of monetary policy.
Crude oil prices continued to provide support to global sentiment. Brent crude slipped below the $80-per-barrel mark for the first time since the early phase of the US-Iran conflict following reports that the United States could waive sanctions on Iranian oil as part of a broader agreement expected to be formally signed later this week.
The possibility of additional Iranian oil supplies entering global markets has strengthened expectations of lower energy prices, easing concerns around inflation and global growth. Investors are also awaiting comments from Federal Reserve Chair Kevin Warsh for further policy signals.
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Brent Below $80; Gold, Silver Edge Higher
Crude oil remained in focus after extending recent declines.
Brent crude futures traded at $79.25 per barrel, while the June contract on the Intercontinental Exchange was quoted 0.37 per cent higher. Prices remained near a three-month low amid an improving supply outlook following the US-Iran peace agreement and the reopening of the Strait of Hormuz.
Precious metals traded higher in early deals, with gold futures up 0.16 per cent and silver futures advancing 0.77 per cent.
Markets will closely track the outcome of the US Federal Reserve’s policy meeting, commentary on inflation and growth, and signals on the future path of interest rates. Investors are also monitoring developments related to the US-Iran agreement and movements in crude oil prices, which continue to influence global risk sentiment.
