Sensex and Nifty Rise Over 0.5% at Open as Investors Eye US Federal Reserve Decision

Benchmark domestic equity indices opened Wednesday's trading session on a firmer footing, rebounding from sharp losses recorded in earlier sessions as global and domestic investors awaited the monetary policy verdict from the U.S. Federal Reserve.

At 9:19 AM, the 30-share BSE Sensex traded higher by 373.05 points, or 0.51 per cent, at 74,377.87. Simultaneously, the 50-share NSE Nifty index gained 123.60 points, or 0.53 per cent, to trade at 23,242.20.

Frontline Stocks Drive Early Gains

The morning bounce was primarily driven by defensive and select large-cap consumption plays. Among the major frontline index constituents:

• Nestle India, ITC, and Mahindra & Mahindra emerged as top gainers on the Nifty 50, anchoring the early upmove.
• On the sectoral front, the Nifty FMCG index led market gains, rising over 1 per cent in early trade to outperform other indices.
• Conversely, the Nifty Pharma index witnessed selling pressure, recording the sharpest sectoral decline of the morning session.

Divergence in Broader Markets

Despite the steady opening across large-cap benchmarks, broader market breadth revealed ongoing caution among domestic market participants. The Nifty MidCap index retreated 0.25 per cent, while the Nifty SmallCap index slipped 0.56 per cent during early trade, underscoring valuation wariness and selective risk appetite in second-tier equities.

In the currency market, the Indian rupee opened at 95.89 against the U.S. dollar, compared to the previous close of 95.96.

Backdrop: Crude Headwinds and Fed Watch

Wednesday's initial relief rally follows heavy market liquidation in the previous session, where the Sensex dropped 777.94 points, or 1.04 per cent, to 74,003.82 and the Nifty tumbled 279.50 points, or 1.19 per cent, to settle at 23,118.60.

The domestic sentiment remains constrained by elevated energy prices, with international crude oil quotes hovering near elevated levels, creating upside risks for domestic inflation and the import bill. Market focus remains squarely centered on the U.S. Federal Open Market Committee (FOMC) meeting concludes. Market participants are closely watching the policy trajectory, macroeconomic commentary, and inflation assessments from the U.S. central bank, which will dictate foreign institutional portfolio flows and risk sentiment across emerging markets in the sessions ahead.

Tags: BSE Sensex Nifty 50 US Federal Reserve Nestle India ITC Mahindra and Mahindra