Nifty, Sensex open flat ahead of Fed meeting, other Asian markets rally on rate cut hopes

MUMBAI: Indian stock markets opened flat on Wednesday ahead of the much-awaited U.S. Federal Reserve meeting, even as Asian markets rallied on hopes of a rate cut.

The lack of strong corporate earnings growth at high market valuations has remained a restraining factor for Indian equities.

The Nifty 50 index opened at 25,982, up 45.80 points or 0.18 per cent, while the BSE Sensex started the session at 84,654.44, gaining 26.28 points or 0.03 per cent.

According to market expert Ajay Bagga, “Indian markets have had the best Nifty performance since June 2024, rising over 5 per cent in October. FPI shorts have reduced from a massive 94 per cent to 80 per cent. Indian markets should surmount their all-time highs hit in September 2024 in

November as per the market trajectory. However, global markets being priced to perfection are a risk for the medium term.”

He added that liquidity, earnings, monetary support, and AI-driven gains are pushing global markets to all-time highs.

“This party will probably continue for another year at least. Indian markets are positioned to be in the ‘catch-up and outperform’ zone, given the previous 13 months of underperformance. The lack of strong corporate earnings growth at high market valuations has been the restraining factor for the Indian markets. That scenario should improve over the next six months as markets rally in anticipation,” Bagga noted.

In the U.S., markets continued their record-setting spree amid easing U.S.-China tensions, expectations of further Fed rate cuts, and robust earnings projections.

Investors will closely watch tonight’s Fed policy decision and commentary on the U.S. labour market, inflation, and economic outlook. Meanwhile, the U.S. government shutdown impasse continues with no resolution, even after four weeks.

Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, said, “Nifty index concluded the October series with firm gains of nearly 5 per cent on an expiry-to-expiry basis, maintaining its dominant bullish tone. Despite being confined within a narrow range over the past three trading sessions, the index continues to exhibit remarkable resilience.” He added that Nifty’s pattern of higher highs and higher lows reaffirms a strong uptrend.

On the corporate front, Orkla India’s IPO is set to open on October 29. The issue, entirely an offer for sale (OFS), is valued at Rs 1,667.54 crore with a price band of Rs 695 to Rs 730 per share.

Key earnings scheduled for release today include Larsen & Toubro, Coal India, Hindustan Petroleum Corporation, LIC Housing Finance, PB Fintech, APL Apollo Tubes, Apollo Pipes, Bharat Heavy Electricals, Brigade Enterprises, and CG Power and Industrial Solutions.

In Asia, markets traded higher following strong cues from Wall Street. Japan’s Nikkei 225 gained more than 2 per cent, Taiwan’s Weighted Index rose 1.29 per cent, and South Korea’s KOSPI advanced 1.35 per cent. However, Singapore’s Straits Times Index remained flat in red at the time of filing this report. (ANI)