Benchmark equity indices initially fell due to weak Asian markets and foreign fund outflows, but later rebounded due to buying in Reliance Industries. Investors are closely monitoring the US Federal Reserve’s interest rate decision and the interim budget for further market cues. Asian markets were trading lower.
On Wednesday, benchmark equity indices opened lower due to sluggish Asian markets and foreign money outflows. But, Reliance Industries’ buying drove a rebound, later in the day.
The 30-share BSE Sensex fell 243.07 points to 70,896.83 and the Nifty 73.25 points to 21,448.85. After that, the Sensex rose 146.33 points to 71,286.23 and the Nifty rose 58.25 points to 21,580.35.
Larsen & Toubro’s stock fell 5% after announcing December quarter earnings among Sensex firms. Titan, Kotak Mahindra, ICICI, Infosys, Axis, and State Bank of India also lagged. Tata Motors, Reliance Industries, Tata Steel, and Bajaj Finserv gained.
Investors will watch the interim budget and the US Federal Reserve’s interest rate decision for market clues. Asian markets in Seoul, Tokyo, Shanghai, and Hong Kong fell, while US stocks fell largely on Tuesday.
Geojit Financial Services Chief Investment Strategist V K Vijayakumar noted the influence of the US Federal Reserve decision and interim budget on near-term market movements. Brent crude fell 0.45% to USD 82.50 a barrel. FIIs sold Rs 1,970.52 crore in shares on Tuesday, according to market data. Last trading day, the BSE benchmark slid 801.67 points, or 1.11 percent, to 71,139.90, while the Nifty fell 215.50 points, or 0.99 percent, to 21,522.10.
Conclusion
After sluggish Asian markets and international investment outflows, benchmark stock indices opened negative. It recovered later, mostly due to Reliance Industries purchases. The Nifty fell 73.25 points and the BSE Sensex 243.07 points. After that, the Sensex rose 146.33 points and the Nifty 58.25 points. The US Federal Reserve’s interest rate decision and interim budget are closely watched by investors for market cues.
