Domestic benchmark indices closed in the green on Wednesday, buoyed by favorable global cues such as strong U.S. job data, while the ongoing RBI Monetary Policy Committee (MPC) meeting added a layer of speculation about a potential rate cut.
The Sensex ended 260.74 points, or 0.32%, higher at 80,998.25, while the Nifty closed 77.70 points, or 0.32%, higher at 24,620.20.
Midcap and smallcap indices outperformed largecaps. The Nifty Midcap 100 index rose 407.55 points, or 0.71%, to 57,924.65, while the Nifty Smallcap 100 index gained 142.95 points, or 0.79%, to close at 18,257.10.
On a sectoral basis, indices for auto, IT, PSU banks, financial services, pharma, FMCG, metal, media, energy, and private banks ended in the green. Only the realty index closed in the red.
Rupak De from LKP Securities noted that the Nifty continues to exhibit lacklustre sentiment as traders await the RBI’s rate decision.
Vikram Kasat, Head of Advisory at PL Capital, said that markets opened firmly as benchmark indices moved higher amid global tailwinds and anticipation around the RBI’s policy stance.
With the Nifty holding above 24,500, near-term sentiment remains constructive. However, clarity from the RBI and developments in global macroeconomic indicators will shape the next leg of the rally.
Meanwhile, the rupee traded weaker by 25 paise at 85.87, inching closer to the 86.00 mark, as foreign investors remained in sell mode ahead of the RBI policy announcement. Analysts expect the rupee to trade in a range of 85.50 to 86.40.
—IANS
