India’s benchmark indices held onto their early gains on Wednesday, closing the day in positive territory. The Sensex gained 102.44 points, or 0.13 percent, to 80,905.30, while the Nifty added 71.35 points, or 0.29 percent, to end at 24,770.20.
Support from FMCG, media, and consumer durable stocks helped the indices remain steady throughout the day.
The upbeat performance of U.S. markets, which have rallied for over a week, also provided a lift to Indian stocks. U.S. markets have recovered over USD 3 trillion in market capitalization from the August lows, analysts noted.
“Rotational buying in heavyweights across sectors is aiding the index’s gradual climb. However, inconsistency in the banking sector is keeping participants cautious. Along with domestic factors, it’s crucial to monitor U.S. markets for further cues,” Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, said.
Vinod Nair, Head of Research at Geojit Financial Services, said that the Indian markets traded within a tight range but maintained a positive bias, supported by strong domestic institutional investor flows.
“Defensive sectors outperformed due to a continued shift in portfolio allocations towards FMCG, consumer goods, commodities, and pharma. Global markets displayed a mildly cautious tone ahead of the release of the FOMC minutes later today. The expectation of a rate cut remains high, given the decline in U.S. inflation and overall growth moderation,” Nair said.
Meanwhile, the Indian rupee inched lower today after appreciating recently due to a plunge in the dollar index and stable international crude oil prices. At the time of writing, the rupee was trading at 83.90, slightly down from the previous day’s close of 83.76.
Looking ahead, investors will focus on U.S. Fed Chief Jerome Powell’s speech at the Jackson Hole symposium, along with the Fed’s policy minutes, expected to provide insights into the central bank’s monetary policy stance and potential adjustments to interest rates.