Sensex ends flat, Nifty gains 0.23% as investors assess US Fed policy outcome
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Indian equity benchmarks showed mixed results during Thursday’s trading session, as market participants analyzed the recent US Federal Reserve policy decisions and their potential impact on international financial landscapes.
The Sensex recorded a marginal decline of 21.86 points, or 0.03 per cent, closing at 74,314.59. Conversely, the Nifty climbed 53 points, or 0.23 per cent, to finish at 23,270.60.
Regarding the Nifty’s technical trajectory, analysts observed that the index is testing resistance near the 23,300 mark. “If the index can maintain a position above this level, it may drive a rally toward 23,500. On the downside, key support levels are positioned at 23,200 and 23,000,” market specialists commented.
Selective heavyweights drove much of the buying activity, with Tata Motors Passenger Vehicles (TMPV), HDFC Life Insurance, and SBI Life Insurance leading the gainers within the Nifty index.
The broader market displayed stronger momentum than the main indices, as the Nifty MidCap index surged 0.92 per cent and the Nifty SmallCap index rose by 0.76 per cent.
Sectoral performance was varied, with Realty, Auto, and Metal sectors leading the gains. However, the banking sector faced headwinds, with Nifty Bank, Nifty PSU Bank, and Nifty Private Bank acting as the primary sectoral laggards.
Market experts suggested that the indices remained within a tight range as investors balanced the implications of the US Fed’s stance against sector-specific trends and general market sentiment.
In currency markets, the Indian Rupee (INR) is anticipated to face downward pressure. Following the US Federal Reserve’s announcement regarding rate hikes and signals of potential future tightening to reach a 2 per cent inflation target, the INR may breach the 96-per-USD threshold.
Technically, the USD/INR spot pair continues to trend upward following its recent volatility, according to market observers.
Analysts identified the immediate resistance level at 96.25, with support expected in the 95.40 – 95.75 range.
