India’s benchmark indices closed flat on Wednesday as investors awaited the US Federal Reserve’s policy decision on a potential rate cut.
The Nifty slipped 41 points, or 0.16%, ending at 25,377.55, after hitting an intraday high of 25,482.20. Similarly, the BSE Sensex lost 131.43 points, or 0.16%, closing at 82,948.23, down from its peak of 83,326.38 earlier in the day.
Among the top gainers were Shriram Finance, Bajaj Finance, Bajaj Finserv, Nestle India, and ICICI Bank, while major tech stocks like TCS, HCL Technologies, Infosys, Tech Mahindra, and Wipro were the biggest losers. The banking and financial services sectors saw notable gains, though PSU banks traded with muted performance.
“Benchmark indices Nifty and Sensex reached fresh all-time highs today but failed to sustain these levels, forming a ‘High Wave’ candlestick pattern on the daily chart,” said VLA Ambala, research analyst and co-founder of Stock Market Today.
“Despite this, the broader market trend remains bullish. However, caution is advised as the market is in an overbought zone, with Nifty’s RSI above 80 on the monthly chart and 70 on the weekly chart. The rare occurrence of all-time highs in both the stock market and gold signals protection against market volatility amid global geopolitical tensions and recession fears.”
Varun Aggarwal, MD of Profit Idea, said, “A breakout above 25,500 could signal further upward momentum, while a dip below 25,200 may trigger profit-taking, with potential support at the 25,000 level.”
In commodities, gold prices held steady despite a stronger dollar and rising yields following better-than-expected US retail sales data. Market participants are anticipating a possible 50-basis point rate cut by the Fed, though delays in adjustments could negatively affect gold prices in the short term.
In global markets, Asia-Pacific indices finished higher, supported by Wall Street gains. Japan’s Nikkei 225 rose by 0.49%, while US stock futures were mixed ahead of the Fed’s decision, with a 63% probability of a 50-basis point cut.
In the energy market, US crude oil climbed 1.57% to USD 71.19 per barrel, while Brent rose 1.31% to USD 73.70. Spot gold dipped 0.51% to USD 2,569.51 an ounce after hitting a record high earlier this week.
(With ANI input)