The Sensex surged over 400 points to surpass 74,400, while the Nifty 50 climbed around 128 points to reach 23,247 as of 10:45 am. This rise comes as investors anticipate the Federal Reserve's meeting outcome.
Leading the gains on the Sensex were shares of Axis Bank, M&M, ITC, and SBI, each rising around 2%. Reliance Industries, BEL, Adani Ports, HCL Technologies, and Sun Pharma also saw gains of over 1% each. In contrast, shares of TCS, Eternal, NTPC, and Tata Steel fell by approximately 1% each. Sector-wise, the Nifty FMCG and Nifty PSU Bank indices gained more than 1%, while Nifty IT, Nifty Metal, and Nifty Pharma indices slipped into negative territory.
The overall market breadth remained negative, with 2,082 declines against 1,170 advances on the NSE, and 108 stocks remained unchanged. The Federal Reserve is expected to announce the outcome of its FOMC meeting, with a likely interest rate hike anticipated by economists.
“The market's weak construct is due to elevated US bond yields and high crude prices.”
VK Vijayakumar, Chief Investment Strategist at Geojit Investments
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the market's weak construct is due to elevated US bond yields and high crude prices. He mentioned that FIIs have been selling in the market over the last five days, and with the US 10-year yield at 5%, they are likely to sell at every small rally.
Anand James, Chief Market Strategist at Geojit Investments, highlighted that Nifty's inability to stay above 23,515 has invalidated the upside attempt. He pointed out that closing below the lower Bollinger Band and the bearish engulfing candle indicate strong bearishness but also suggest peaking fear.
“Nifty's inability to stay above 23,515 has invalidated the upside attempt.”
Anand James, Chief Market Strategist at Geojit Investments
Background
The Federal Reserve's meeting outcome is crucial for the market's direction. Investors should watch for the Fed's commentary on the evolving macro-outlook and future rate actions.
The Federal Reserve's meeting outcome is crucial for the market's direction. Investors should watch for the Fed's commentary on the evolving macro-outlook and future rate actions. Additionally, the appointment of a new MD and CEO for HDFC Bank and new MDR norms for digital transactions could influence market movements.
