Nifty, Sensex Notch Fresh Highs Ahead Of Fed Meet Outcome: Midday Market Update

India's benchmark indices climbed to fresh life highs on Wednesday led by financial stocks, just ahead of the crucial decision by the US Federal Reserve.

At 12:08 a.m., the NSE Nifty 50 was trading 40 points, or 0.16% higher at 25,258, and the S&P BSE Sensex was up 154 points, or 0.19%, at 83,234. Both Nifty and Sensex rose as much as 0.24% and 0.28% respectively, to hit record levels earlier in the day.

India's information technologies stocks plunged with the NSE Nifty IT emerging as the top sectoral loser. The market cap of IT companies declined by Rs 95,757.06 crore during the early hours of trade.

Traders globally remained on edge over the quantum of the likely rate cut by the US Federal Reserve.

Meanwhile, the gauge of financial stocks rose to a fresh record after underperforming the benchmark indices in the year so far. Shriram Finance Ltd. and ICICI Lombard General Insurance Co. lifted the index on Wednesday.

India is set to extend its leadership position in MSCI's gauge for emerging markets Investable Market Index, after recently pipping China. India is now the largest EM market per MSCI IMI (investible large, mid and small cap) criteria, while China's weight has fallen by a half since peaking in early 2021, according to Morgan Stanley. This could attract foreign inflows amid peak valuations.

The index could slip past the congestion support of 25,405, to initiate a play on a downmove aiming 25,276 or 25,200, according to Anand James, chief market strategist, Geojit Financial Services Ltd. "Collapse beyond the same is not expected today, but we could equally expect momentum to ease off, should we get into the 25,500-800 region."

Shares of HDFC Bank Ltd., ICICI Bank Ltd., Bajaj Finance Ltd., Mahindra & Mahindra Ltd., and Larsen & Toubro Ltd. were positively contributing to changes in the Nifty 50.

While those of Infosys Ltd., Tata Consultancy Services Ltd., HCL Technologies Ltd., Tech Mahindra Ltd., and Wipro Ltd. were negatively contributing to the changes.

On NSE, eight of the 12 sectors advanced, with Nifty Finance and Bank climbing the most during the session. Nifty IT fell the most.

Broader markets underperformed the benchmark indices, with the Midcap and Smallcap trading 0.20% and 0.13% lower, respectively, through midday on Wednesday.

On BSE, nine of the 20 sectors advanced, with BSE Financial Services and Bankex leading the climb.

Around 1,780 stocks rose, 2,024 stocks declined, and 145 remained unchanged on the BSE.