Sensex, Nifty off to flat start ahead of US Fed outcome

Despite a negative close for Wall Street in overnight trade, the Indian equity market on Wednesday opened flat. Nervousness was palpable ahead of the US Federal Reserve’s policy meeting outcome in which Jerome Powell is expected to go for another large rate hike.

While Wall Street ended around 1 per cent lower overnight, the US 10-year bond yield hit the 10-year high and the US dollar index was trading above 110 level.

At 9.17 am, the BSE Sensex was trading 26.47 points or 0.04 per cent higher at 59,746.21. Nifty50 was trading at 17,802.65, down 13.60 points or 0.08 per cent.

V K Vijayakumar, Chief Investment Strategist at

said that the overarching trend in the market now is India’s outperformance vis-a-vis other markets, particularly the mother market US.

“The big question is whether this outperformance can sustain. This is possible since the Indian economy and corporate earnings are outperforming. However, the risk is the high valuation in India- Nifty at 18000 is trading at 22 times FY23 earnings,” Vijayakumar added.

If there is a sharp cut in the US market on recession fears triggered by sharp rate hikes or if the Ukraine war escalates, as some fear now, the Indian market too will be impacted, he said.

Among Sensex stocks, M&M rose 1.34 per cent to Rs 1,320.35. , , and surged 1.33 per cent, 1.12 per cent, 0.98 per cent and 0.95 per cent, respectively.

On the other hand,

, , and fell 0.74 per cent, 0.64 per cent, 0.64 per cent and 0.62 per cent, respectively.

Mohit Nigam, Head – PMS, Hem Securities said on the technical front 17,500 and 17,900 are immediate support and resistance in Nifty 50. For Bank Nifty 40,600 and 41,800 are immediate support and resistance respectively, Nigam added.

Sectorally, Nifty Auto jumped 0.87 per cent, while Nifty IT declined 0.27 per cent. Nifty Midcap50 and Smallcap50 rose 0.59 per cent and 0.51 per cent, respectively.

On Tuesday US markets ended lower, S&P 500, Dow and Nasdaq plunged 1.13 per cent, 1.01 per cent and 0.95 per cent, respectively.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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