Sensex Opens Above 82,550, Nifty In Green With US Fed's Rate Cut On The Horizon

In the pre-open session, the Sensex jumped over 100 points to inch closer to 82,500, and the Nifty tested 25,300, climbing 50 points, around 9:06 AM.

Analysts noted that investor focus will stay on trade discussions, while strong domestic fundamentals are likely to underpin earnings upgrades, providing valuation support and cushioning downside risks.

Source : Freepik

The Indian markets appeared bullish on Wednesday morning as investors awaited the rate cut decision from the US Fed. The BSE Sensex opened the session above 82,550, soaring about 180 points, while the NSE Nifty50 started trading just over 25,300, rising 66 points, around 9:15 AM.

In the pre-open session, the Sensex jumped over 100 points to inch closer to 82,500, and the Nifty tested 25,300, climbing 50 points, around 9:06 AM. Notably, the US Federal Reserve is scheduled to reveal the rate policy on Wednesday. 

On the 30-share Sensex, BEL, UltraTech Cement, Trent, L&T, and HCL Tech stood among the gainers. Meanwhile, the laggards included Adani Ports, M&M, Tata Steel, Eternal, and PowerGrid.

In the broader markets, the Nifty Smallcap50 dominated with gains of 0.75 per cent. Sectorally, the Midsmall IT & Telecom index led across the board after it climbed 1.08 per cent.

Expectations From US Fed

Analysts noted that immediate support for the Nifty has firmed up at the 25,000 mark, with resistance likely emerging in the 25,420–25,500 zone. Market participants are largely pricing in a 25-basis-point cut at the conclusion of the two-day Federal Open Market Committee (FOMC) meeting on Wednesday, reflecting concerns over recent signs of labour market weakness in US economic data.

Traders are expected to closely analyse the Fed’s policy statement and updated economic projections for clarity on the future path of interest rates. Meanwhile, a US trade delegation led by Chief Negotiator Brendan Lynch held discussions with officials from India’s Commerce Department on Tuesday to advance the Bilateral Trade Agreement (BTA). The talks were described as “positive and forward-looking,” with both sides agreeing to step up efforts for an early conclusion of a mutually beneficial deal.

On the domestic front, foreign institutional investors (FIIs) were net buyers of equities worth Rs 308 crore on Tuesday, while domestic institutional investors (DIIs) purchased shares worth Rs 1,518 crore, extending support to the market.

In the previous trading session, Indian equity benchmarks staged a strong rally, lifted by renewed optimism around the resumption of India-US trade talks and growing expectations of a US Federal Reserve rate cut.

The Sensex surged 594.95 points, or 0.73 per cent, to close at 82,380.69. The Nifty settled at 25,239.10, up 169.90 points, or 0.68 per cent.

“Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations,” said Vinod Nair, Head of Research, Geojit Financial Services. He added that the positive momentum was supported by favourable global cues, with investors factoring in a 25 basis-point cut in the upcoming Fed policy decision alongside optimism over trade negotiations.

Analysts noted that investor focus will stay on trade discussions, while strong domestic fundamentals are likely to underpin earnings upgrades, providing valuation support and cushioning downside risks.