The two key equity benchmarks, Sensex and Nifty, on Wednesday erased early gains and are trading flat amid volatility. At 10.05 am, the BSE Sensex dipped 47 points to 71,964. On the other hand, the NSE Nifty50 was quoting 21,785, down 32 points.
On the 30-share Sensex platform, Maruti, Nestle, IndusInd Bank, Bajaj Finance, TCS, PowerGrid are trading higher. On the down side, Tata Steel, Tata Motors, NTPC, HUL, JSW Steel, Sun Pharma emerged losers.
In the broader markets, BSE Midcap and Smallcap indices are trading lower.
Scetorwise, metal, power, capital goods, healthcare dropped 0.5-1 per cent.
In the previous session on Tuesday, the S&P BSE Sensex dropped 736 points to end at 72,012, while the NSE Nifty50 closed at 21,817, down 238 points.
Prashanth Tapse, senior VP (Research), Mehta Equities Ltd, said in his pre-opening market comment that this Wednesday morning brings optimism with positive catalysts such as FII's buying activity and favorable Wall Street performance.
In Asian markets, Seoul, Shanghai, and Hong Kong were trading in positive territory. Wall Street ended with gains on Tuesday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,421.48 crore on Tuesday, according to exchange data.
Global oil benchmark Brent crude dipped 0.17 per cent to $87.23 a barrel.
In anticipation of the pivotal US Fed policy announcement scheduled for later in the day, the Indian rupee saw a marginal uptick of 1 paisa, reaching 83.02 against the US dollar on Wednesday.
Beginning the day on a positive note, the rupee commenced trading at 83.00 at the interbank foreign exchange market, showing improvement from the previous close of 83.03, buoyed by a robust performance in domestic stock markets. As the morning progressed, the rupee continued its ascent, settling at 83.02, marking a modest gain of 1 paisa.
However, recent weeks have witnessed a different trend, with the local currency experiencing a decline below the 83 level for the first time in a month. This downward movement was attributed to multiple factors, including a surge in crude oil prices and substantial outflows of foreign funds. Notably, the rupee has recorded losses against the US dollar for the past seven consecutive sessions.