Indian equity markets opened flat on Wednesday as investors awaited the outcome of the U.S. Federal Reserve meeting, even as most Asian markets traded higher on hopes of a rate cut.
The Nifty 50 index opened at 25,982, up 45.80 points or 0.18 per cent, while the BSE Sensex began the session at 84,654.44, rising 26.28 points or 0.03 per cent.
Analysts said the absence of strong corporate earnings growth at high market valuations continues to act as a limiting factor for Indian equities.
Market expert Ajay Bagga said that Indian markets have posted their best Nifty performance since June 2024, gaining over 5 per cent in October. “FPI shorts have reduced from a massive 94 per cent to 80 per cent. Indian markets are likely to surpass their all-time highs hit in September 2024 by November, as per the market trajectory. However, global markets being priced to perfection remain a risk for the medium term,” he said.
Bagga added that liquidity, earnings, monetary support, and AI-driven gains are propelling global markets to record highs. “This party will probably continue for another year at least. Indian markets are now in a ‘catch-up and outperform’ phase after 13 months of underperformance. The lack of strong earnings at high valuations has been a drag, but that scenario should improve over the next six months as markets rally in anticipation,” he added.
In the U.S., major indices extended their record run, supported by easing U.S.-China tensions, expectations of further rate cuts, and robust earnings projections. Investors are now awaiting the Fed’s policy decision and commentary on inflation, labour markets, and the economic outlook. Meanwhile, the U.S. government shutdown impasse has continued for four weeks without resolution.
Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, said, “The Nifty index concluded the October series with firm gains of nearly 5 per cent on an expiry-to-expiry basis, maintaining its bullish tone. Despite being confined within a narrow range over the past few sessions, the index continues to show remarkable resilience.” He added that Nifty’s pattern of higher highs and higher lows reaffirms a strong uptrend.
On the corporate front, Orkla India’s IPO opened today, with an issue size of Rs 1,667.54 crore and a price band of Rs 695 to Rs 730 per share.
Key earnings reports due today include Larsen & Toubro, Coal India, Hindustan Petroleum Corporation, LIC Housing Finance, PB Fintech, APL Apollo Tubes, Apollo Pipes, Bharat Heavy Electricals, Brigade Enterprises, and CG Power and Industrial Solutions.
Across Asia, markets traded higher following firm cues from Wall Street. Japan’s Nikkei 225 gained over 2 per cent, Taiwan’s Weighted Index rose 1.29 per cent, and South Korea’s KOSPI advanced 1.35 per cent. However, Singapore’s Straits Times Index was trading marginally lower at the time of filing this report.
-ANI