Benchmark equity indices started the day positively on Wednesday, following gains in Asian markets in anticipation of the US Federal Reserve’s upcoming policy announcement. The S&P BSE Sensex rose by 153.31 points to reach 84,781.47, while the NSE Nifty50 remained just below the 26,000 mark after briefly surpassing it earlier in the trading session.
The global market mood was uplifted by the increase in US tech stocks, fueled by the prevailing optimism surrounding companies involved in artificial intelligence technologies.
Investors are eagerly awaiting the Federal Reserve’s interest rate decision, with a widely anticipated 25-basis-point rate cut. However, the focus is also on the central bank’s commentary regarding their balance sheet reduction.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned, “Global stock markets are displaying a bullish trend supported by the continuous rise in the US market, particularly in tech stocks driven by AI-related developments. While the Fed is expected to lower rates by 25 basis points, the discussion on quantitative tightening will be crucial.”
He further noted that Nifty’s gains in the October derivatives series have strengthened a slightly positive sentiment that could carry over into November, with Nifty Bank poised to take a leading position. Noteworthy large-cap stocks like Bharti Airtel, Reliance Industries, and Larsen & Toubro are anticipated to provide additional backing.
Regarding technical analysis, experts emphasized the importance of the index’s ability to maintain levels above key support areas. Anand James, Chief Market Strategist at Geojit Financial Services, highlighted, “Although there was a sharp retracement after briefly surpassing 26,000, the doji pattern suggests insufficient bearish momentum currently to trigger a significant downturn. As long as Nifty remains above 25,900, there is a likelihood of further upward movement, with potential targets between 26,186 and 26,250.”
Broader market activity displayed mixed trends, with ongoing volatility expected until there is more clarity on the US central bank’s position.