Indian shares ended higher on Wednesday, buoyed by a rally in Larsen & Toubro after the engineering giant posted strong quarterly results. However, broader gains were tempered as investors remained cautious ahead of the U.S. Federal Reserve’s policy decision and an impending U.S. tariff deadline.
The benchmark BSE Sensex added 143.91 points, or 0.18%, to close at 81,481.86. The NSE Nifty advanced 33.95 points, or 0.14%, to finish at 24,855.05.
Top Gainers & Losers
Larsen & Toubro shares ended 4.7% higher, topping the Nifty 50 gainers, after the engineering major reported a 30% jump in first-quarter profit that beat analyst expectations.
Trading was mixed across sectors, with IT and FMCG stocks inching up 0.3% and 0.2%, respectively. Realty and auto stocks lagged, falling 0.6% and 1%.
Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices slipping 0.1% and 0.5%.
Tata Motors dropped 3.5% following media reports that the automaker is in talks to acquire Italian truck manufacturer Iveco for $4.5 billion, sparking investor concern about a potential strain on the company’s balance sheet.
GNG Electronics soared 40.7% in its trading debut. Indiqube Spaces, a workplace solutions firm, slid 8% on its first day.
Overall sentiment remained cautious amid renewed uncertainty over U.S.-India trade negotiations. President Donald Trump said a trade agreement with India had yet to be finalised and warned of possible tariff hikes ahead of an August 1 deadline.
Investors also remained on edge ahead of the Federal Reserve’s policy decision due later in the day. While the Fed is widely expected to hold rates steady, markets are watching closely for signals from Chair Jerome Powell on the timing and pace of future rate cuts.
Elevated U.S. interest rates have weighed on emerging market flows, and foreign investors have been consistent net sellers in Indian equities this month.
Expert Views
Indian markets traded in a tight range and ended marginally higher amid mixed cues, said Ajit Mishra, SVP, Research, Religare Broking, adding "sentiment remained subdued due to lingering uncertainty over the trade deal, following the latest statement from the US President about potential tariffs on India, amid delays in finalizing the agreement ahead of the August 1 deadline."
"Additionally, caution prevailed ahead of the outcome of the FOMC meeting — while no rate change is expected, the Fed's commentary will be closely watched," said Mishra.
On the Nifty index, the 25,000–25,100 zone is expected to act as a resistance and may attract fresh selling if the market attempts a rebound, while support is seen around the 24,450–24,550 zone, said Mishra, adding that "given the likelihood of volatile swings, we recommend maintaining a cautious stance and prefer a hedged approach."
Global Markets
World equity markets showed little conviction on Wednesday as investors remained cautious ahead of the Federal Reserve’s policy announcement, and as U.S.-China trade talks ended without significant progress.
Yields on U.S. Treasurys and the dollar held steady, with markets widely expecting the Fed to keep interest rates unchanged despite ongoing calls from the White House for lower borrowing costs.
In Europe, the STOXX 600 was largely unchanged, with benchmark indexes in Frankfurt, Paris and London treading water. Elsewhere in Asia, early gains in MSCI’s broadest index of Asia-Pacific shares outside Japan faded through the session, while Japan’s Nikkei 225 closed little changed.
Wall Street is also bracing for earnings from tech heavyweights Microsoft and Meta later in the day, with results expected to help set the tone for the remainder of the reporting season.
In commodities, spot gold edged up 0.2% to $3,333.07, recovering slightly after hitting a two-and-a-half week low on Monday.
Rupee vs Dollar
The Indian rupee slumped 0.7% against the U.S. dollar on Wednesday, marking its sharpest single-day decline since May and settling at its weakest level in five months.
The currency touched an intraday low of 87.5125 before closing at 87.42, pressured by rising concerns over potential steep U.S. tariffs on Indian exports and strong dollar demand from foreign banks and importers.
Meanwhile, the dollar index held steady at 98.8 as global markets awaited the outcome of the Federal Reserve’s policy meeting later in the day.
Crude Impact
Crude prices declined on Wednesday as traders weighed the potential fallout from U.S. President Donald Trump’s accelerated deadline for Russia to end the war in Ukraine and his renewed tariff threats on countries trading in Russian oil.
Brent crude futures, the global benchmark, slipped 58 cents, or 0.81%, to $71.10 a barrel by 10:14 GMT. U.S. West Texas Intermediate crude fell by the same amount, down 0.84%, to $68.63.
(With inputs from agencies)
The benchmark BSE Sensex added 143.91 points, or 0.18%, to close at 81,481.86. The NSE Nifty advanced 33.95 points, or 0.14%, to finish at 24,855.05.
Top Gainers & Losers
Larsen & Toubro shares ended 4.7% higher, topping the Nifty 50 gainers, after the engineering major reported a 30% jump in first-quarter profit that beat analyst expectations.
Trading was mixed across sectors, with IT and FMCG stocks inching up 0.3% and 0.2%, respectively. Realty and auto stocks lagged, falling 0.6% and 1%.
Broader markets underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices slipping 0.1% and 0.5%.
Tata Motors dropped 3.5% following media reports that the automaker is in talks to acquire Italian truck manufacturer Iveco for $4.5 billion, sparking investor concern about a potential strain on the company’s balance sheet.
GNG Electronics soared 40.7% in its trading debut. Indiqube Spaces, a workplace solutions firm, slid 8% on its first day.
Overall sentiment remained cautious amid renewed uncertainty over U.S.-India trade negotiations. President Donald Trump said a trade agreement with India had yet to be finalised and warned of possible tariff hikes ahead of an August 1 deadline.
Investors also remained on edge ahead of the Federal Reserve’s policy decision due later in the day. While the Fed is widely expected to hold rates steady, markets are watching closely for signals from Chair Jerome Powell on the timing and pace of future rate cuts.
Elevated U.S. interest rates have weighed on emerging market flows, and foreign investors have been consistent net sellers in Indian equities this month.
Expert Views
Indian markets traded in a tight range and ended marginally higher amid mixed cues, said Ajit Mishra, SVP, Research, Religare Broking, adding "sentiment remained subdued due to lingering uncertainty over the trade deal, following the latest statement from the US President about potential tariffs on India, amid delays in finalizing the agreement ahead of the August 1 deadline."
"Additionally, caution prevailed ahead of the outcome of the FOMC meeting — while no rate change is expected, the Fed's commentary will be closely watched," said Mishra.
On the Nifty index, the 25,000–25,100 zone is expected to act as a resistance and may attract fresh selling if the market attempts a rebound, while support is seen around the 24,450–24,550 zone, said Mishra, adding that "given the likelihood of volatile swings, we recommend maintaining a cautious stance and prefer a hedged approach."
Global Markets
World equity markets showed little conviction on Wednesday as investors remained cautious ahead of the Federal Reserve’s policy announcement, and as U.S.-China trade talks ended without significant progress.
Yields on U.S. Treasurys and the dollar held steady, with markets widely expecting the Fed to keep interest rates unchanged despite ongoing calls from the White House for lower borrowing costs.
In Europe, the STOXX 600 was largely unchanged, with benchmark indexes in Frankfurt, Paris and London treading water. Elsewhere in Asia, early gains in MSCI’s broadest index of Asia-Pacific shares outside Japan faded through the session, while Japan’s Nikkei 225 closed little changed.
Wall Street is also bracing for earnings from tech heavyweights Microsoft and Meta later in the day, with results expected to help set the tone for the remainder of the reporting season.
In commodities, spot gold edged up 0.2% to $3,333.07, recovering slightly after hitting a two-and-a-half week low on Monday.
Rupee vs Dollar
The Indian rupee slumped 0.7% against the U.S. dollar on Wednesday, marking its sharpest single-day decline since May and settling at its weakest level in five months.
The currency touched an intraday low of 87.5125 before closing at 87.42, pressured by rising concerns over potential steep U.S. tariffs on Indian exports and strong dollar demand from foreign banks and importers.
Meanwhile, the dollar index held steady at 98.8 as global markets awaited the outcome of the Federal Reserve’s policy meeting later in the day.
Crude Impact
Crude prices declined on Wednesday as traders weighed the potential fallout from U.S. President Donald Trump’s accelerated deadline for Russia to end the war in Ukraine and his renewed tariff threats on countries trading in Russian oil.
Brent crude futures, the global benchmark, slipped 58 cents, or 0.81%, to $71.10 a barrel by 10:14 GMT. U.S. West Texas Intermediate crude fell by the same amount, down 0.84%, to $68.63.
(With inputs from agencies)
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