Indian equity indices, Sensex and Nifty, were trading in the positive territory on Wednesday amid hopes of another interest rate cut by US central bank, the Federal Reserve, when it meets again this week for its monetary policy meeting.
Fresh foreign fund inflows also led the markets to gains, with the 30-share BSE Sensex climbing 368.97 points or 0.44 per cent to settle at 84,997.13. During the day, it had jumped 477.67 points or 0.56 per cent to 85,105.83.
The 50-share NSE Nifty went up by 117.70 points or 0.45 per cent to 26,053.90.
From the Sensex firms, Adani Ports, NTPC, Power Grid, HCL Tech, Tata Steel, Sun Pharma, Trent and Asian Paints were among the major gainers.
However, Bharat Electronics, Eternal, Mahindra & Mahindra and Maruti were among the laggards.
Asian markets also reached highs after US President Donald Trump made upbeat comments on the US’ relations with Japan and China. South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index settled higher.
Also Read: Asian stocks soar on Trump’s upbeat comments on China, Japan
Markets in Europe were trading mostly higher, as were the US markets, which ended in positive territory on Tuesday after the Big Tech companies reached al-time heights on the back of the AI surge.
“The domestic market ended on a strong note, supported by positive cues from Asian markets and improved clarity on global trade dynamics. Optimism over potential progress in India-US trade talks further lifted sentiment,” observed Vinod Nair, Head of Research, Geojit Investments Limited.
Talking about the much-anticipated 25-basis-points interest rate cut that investors hope the Federal Reserve announces this week, Nair said the development is expected to prove buoyant for global stock markets.
“The upcoming Fed decision remains a key event for global markets; although a 25-bps rate cut is widely anticipated, investors will closely track its commentary for further rate cuts, which will guide the future market trajectory,” he added.
Foreign Institutional Investors (FIIs) bought equities worth ₹10,339.80 crore on Tuesday, according to exchange data.
Global oil benchmark Brent crude climbed 0.23 per cent to USD 64.55 a barrel.
On Tuesday, the Sensex declined 150.68 points or 0.18 per cent to settle at 84,628.16. The Nifty dipped 29.85 points or 0.11 per cent to 25,936.20.
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