Nifty, Sensex open muted as investors await key US Fed rate cut decision: Experts

MUMBAI: The domestic markets opened on a muted note on Wednesday, reflecting a cautious sentiment among investors ahead of the U.S. Federal Reserve’s key rate cut announcement scheduled tonight. The Nifty opened in green, while the Sensex registered a marginal dip, indicating mixed market momentum.

The Nifty 50 index opened at 25,864.05, gaining 24.40 points, or 0.09 per cent, while the BSE Sensex opened at 84,607.49, declining -58.79 points, or -0.07 per cent. Experts highlighted that the markets continue to remain in the oversold category and are awaiting clarity on tariff-related developments and global cues.

Ajay Bagga, banking and market expert, said that although Indian markets remain weak, the movement is largely range-bound. “Indian markets are weak but range bound and could see some recovery based on the oversold levels technical are showing. The US trade deal talks start today with low expectations. The bigger issue is the massive liquidity outflow from secondary markets in the lottery ticket investing in the primary IPOs and the continued offers from promoters to sell out stakes. That is still the biggest liquidity overhang with no sign of abating”, he said.

He noted that a sustainable rally would depend on positive outcomes on both domestic and global fronts. “A sustainable rally is hence dependent on a US trade deal and a very positive Union Budget,” he added.

In the IPO segment, Meesho’s market debut remains one of the key developments today. The price band of the IPO has been set between Rs 105 to Rs 111 per share. The offer size stands at Rs 5,421 crore, including a fresh issue of Rs 4250 crore and an offer for sale (OFS) of Rs 1171.20 crore.

Bagga further pointed out that global sentiment may witness volatility following the Fed announcement. “As the Fed cuts tonight and Powell gives his comments, along with the Dot Plot, which is not an accurate predictor of the future but is still treated as massively market moving, we expect a risk off overnight in the US markets that will be bought into over the next few days,” he said.

Despite a Trump positive move on allowing the second most powerful Nvidia chip to be exported to China, Nvidia struggled along with most of the US market on Tuesday.

Ponmudi R, CEO of Enrich Money, said, “From a technical perspective, the Nifty 50 continues to trade within a short-term descending channel but is currently holding above its key support zone. The 50-day EMA near 25,728 is acting as a strong stabilizing base for price action. The recent breakdown below the 20-day EMA near 25,976 has turned that level into immediate resistance. RSI is hovering near 47, indicating weakening momentum but not an oversold condition,” he said.

With investors tracking the Fed decision, developments on US trade negotiations, and the ongoing IPO interest, analysts expect continued cautious movement in the domestic equity market through the week. (ANI)