BENGALURU: Indian shares inched higher on Wednesday, led by metal stocks, while the focus shifts to the Federal Reserve’s rate decision and commentary on monetary policy.
The NSE Nifty 50 rose 0.38% to 24,951.15 points, while the S&P BSE Sensex added 0.35% to 81,741.34.
The Nifty hit a record high of 24,999.75 on Monday but has since struggled as investors booked profits.
“While the Nifty is facing resistance near 25,000 levels, the markets have held stable despite profit booking thanks to buying interest from domestic institutional and retail investors at every dip,” said Anita Gandhi, founder and head of institution at Arihant Capital Markets.
“Mostly in-line earnings season so far is also supporting sentiment.”
Ten of the 13 major sectors logged gains. The metals index rose 1.2%, helped by a softer U.S. dollar, which makes metals cheaper to holders of other currencies.
Indian shares pressured by profit-booking near record highs
The pharma index added 1.1%, led by Zydus Lifesciences’ 2.5% rise after getting approval to market its cancer drug in Mexico.
IT companies, which earn a significant share of their revenue from the U.S., rose 0.2% ahead of the Fed’s policy decision, due after the Indian markets close.
While the Fed is expected to hold rates, any dovish commentary could boost sentiment and spur a rally in Indian markets in general, due to re-routed foreign inflows, and in IT stocks in particular. Traders are pricing in rate cuts from September.
GAIL gained 3.1% to hit an all-time high after posting a higher quarterly profit.
Torrent Power climbed 16.6% after reporting a rise in its first-quarter profit, leading the mid-cap index 0.6% higher.
Zee Entertainment Enterprises jumped 2.4% after the broadcaster swung to a quarterly profit, from a year-ago loss, as it added more subscribers.
Maruti Suzuki gained about 2% after its quarterly profit beat estimates.
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