Sensex, Nifty end higher led by metal and PSU bank stocks
Mumbai, June 17
Indian equity benchmarks ended higher on Wednesday, supported by gains in metal, PSU bank and consumer durables stocks, even as investors remained cautious ahead of the US Federal Reserve's policy decision later in the day.
The Sensex rose 347.14 points, or 0.45 per cent, to close at 77,155.62, while the Nifty gained 96.55 points, or 0.4 per cent, to settle at 24,085.70. The benchmark index reclaimed the 24,000-mark amid buying in select heavyweight stocks.
Commenting on Nifty technical outlook, experts said that the 24,100-24,200 zone now emerges as the immediate resistance area.
"On the downside, the 24,000 psychological mark is expected to act as an important immediate support level, having previously served as a key hurdle," an analyst stated.
Among the Nifty constituents, Trent, Bharat Electronics and Hindalco Industries emerged as the top gainers, helping lift the broader market sentiment.
The broader markets also ended in positive territory. The Nifty MidCap index advanced 0.52 per cent, while the Nifty SmallCap index climbed 0.79 per cent.
Sector-wise, the Nifty PSU Bank index outperformed the market, followed by the Nifty Consumer Durables and Nifty Metal indices.
On the other hand, the Nifty Auto and Nifty Realty indices ended as the biggest laggards of the session.
Market participants largely adopted a wait-and-watch approach ahead of the outcome of the US Federal Open Market Committee (FOMC) meeting.
The Federal Reserve is widely expected to keep its benchmark interest rate unchanged at 3.5-3.75 per cent.
Investors are closely tracking the central bank's commentary on inflation, economic growth and the future rate trajectory for clues about the health of the world's largest economy.
The Fed's outlook is also expected to provide insights into the potential impact of recent geopolitical tensions on global growth and financial markets.
"Until investors gain greater confidence in the durability of the agreement and the broader de-escalation process, markets are likely to remain sensitive to geopolitical headlines, with the risk of periodic volatility and sharp reversals persisting despite the recent improvement in sentiment," according to market expert.
Meanwhile, Rupee traded largely flat near 94.50 as both the Dollar Index and crude oil prices remained range-bound, keeping currency markets in a wait-and-watch mode.
"For the near term, the rupee is expected to trade within a range of 94.00-94.85, with Fed commentary likely to provide the next directional trigger," an analyst mentioned.
— IANS
Reader Comments
As someone working in IT, I appreciate that the market is showing stability. But the real test will be after Fed's decision. For now, I'm holding my mutual funds. Let's see how the geopolitical situation with tensions plays out.
PSU bank stocks are finally showing some momentum! Long time holders like me are getting some relief. But the auto sector lagging is concerning - high fuel prices and inflation will keep affecting demand. Let's hope Budget brings some cheer for auto stocks.
Good to see small and mid-caps also in green! This shows retail investors are not panicking. But I think 24,200 resistance will be tough to break. Best to focus on quality stocks in current volatile market. Stay cautious! 🚀📉
I'm a NRI tracking markets from the US. The Indian market resilience is impressive despite global headwinds. But one must respect the technicals - that 24,000-24,200 zone is crucial. I'm watching how Fed commentary impacts the Dollar-Rupee pairs.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.