Indian equity Indices closed on a higher note on Wednesday after hitting new highs. The NSE Nifty 50 hit a new all-time high of 23,441.95. The index later closed 58 points or 0.25% higher from its previous at 23,322.95. Similarly, the BSE Sensex hovered near its record high during the session and settled 150 points or 0.20% higher from the previous close to 76,607. Bank Nifty dropped 189 points or 0.38% to 49,895. The major gainers in the Nifty 50 include Kotak Coal India, Power Grid Corp, Eicher Motors, SBI Life Insurance, and Tech Mahindra.
Following the trend, Nifty Midcap 100 jumped to a fresh record high of 54,308.80. It closed 560 points or 1.04% higher to settle at 54,226. In the broader markets, midcap and smallcap closed in the green.
However, the sectoral indices Nifty FMCG, Auto, and Realty bucked the overall bullish trend and closed in the red down.
“Ahead of US inflation data and FOMC meeting, global markets largely remained positive. The consensus indicates expectations of stable US inflation, but the trajectory of potential rate cuts holds significant importance for future direction, as rate cut expectations has tempered to 2 from 3 earlier. While domestic market is trading at new high on expectations of final budget with a focus on growth, which was amplified by the RBI’s upgrade in GDP growth forecast,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Markets failed to capitalise on its firm start but eked out modest gains on select buying support, as cautioned prevailed amongst investors ahead of US policy rate meeting later in the day. Besides, investors would be watchful of domestic inflation & IIP data which can give a sense about where the domestic growth is headed in the medium term. If US inflation shows signs of cooling, Federal Reserve’s commentary on interest rate direction would be keenly watched by global investors,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
“If the price closes below the 23,200 level, it may see further correction down to the 23,100 and 23,000 levels. Conversely, if the index closes above the 23,450 level, it could reach a new all-time high near 23,600 and above. The market is expected to remain sideways and volatile within the 23,200 to 23,450 range,” said Mandar Bhojane, Research Analyst at Choice Broking.
Bank Nifty
“Bank Nifty tried to breakout above 50300 however fizzled out though managed to close in the green up 190 points. Ideally, dips towards 49600 – 49500 should be used as a buying interest for target of 50500 – 50600,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.