India’s equity benchmarks little changed ahead of Fed decision; tariff worries linger

India’s equity benchmarks ended little changed on Wednesday as gains in Larsen & Toubro after upbeat earnings offset investor caution ahead of the U.S. Federal Reserve’s policy decision and a looming U.S. tariff deadline.

The Nifty 50 rose 0.14% to 24,855.05 points and the BSE Sensex gained 0.18% to 81,481.86.

Nine of the 16 major sectors advanced. Infrastructure major Larsen & Toubro climbed about 5%, and was the biggest percentage gainer on Nifty 50, after its 30% jump in first-quarter profit came above estimates.

“U.S. tariffs and earnings visibility for second half of fiscal 2026 are the key factors currently. Until clarity emerges on these two, the market is unlikely to swing sharply in either direction,” said Arun Malhotra, fund manager at CapGrow Capital.

U.S. President Donald Trump said on Wednesday that a trade deal with India was yet to be finalised and warned of possible higher tariffs ahead of an August 1 deadline to seal an agreement.

Investors are also waiting for Fed’s policy decision later today. The U.S. central bank is expected to hold rates but the focus will be on Chair Jerome Powell’s comments on the economic and inflation outlook amid a prolonged wait for rate cuts.

Indian equity benchmarks set for muted open ahead of Fed policy decision

Higher U.S. interest rates make emerging market equities such as India less attractive for foreign investors, who have been on a selling spree in India this month.

The broader mid-caps and small-caps fell 0.1% and 0.5%, respectively.

Among individual stocks, Tata Motors fell 3.5% as news reports of its plans to buy Italian truck maker Iveco for $4.5 billion raised concerns over a potential strain to its balance sheet.

GNG Electronics made a stellar debut on exchanges, with shares jumping 40.7%.

Workplace solutions provider Indiqube Spaces closed 8% lower in its first trading session.