Equity markets initially took a bearish turn on Wednesday, following weak trends in Asian markets and fresh outflows of foreign funds. However, a recovery ensued as the day progressed, driven by buying activity in Reliance Industries. Investors are closely monitoring two pivotal events on the horizon – the interim budget and the US Federal Reserve's interest rate decision – for further market cues.
During the early trading session, the 30-share BSE Sensex saw a decline of 243.07 points to 70,896.83, while the Nifty slipped 73.25 points to 21,448.85. Subsequently, both benchmark indices rebounded, with the Sensex rising 146.33 points to 71,286.23, and the Nifty trading higher by 58.25 points at 21,580.35.
Larsen & Toubro faced a 5 percent decline after announcing its December quarter earnings, contributing to the early setbacks. Other laggards included Titan, Kotak Mahindra Bank, ICICI Bank, Infosys, Axis Bank, and State Bank of India. On the positive side, gainers included Tata Motors, Reliance Industries, Tata Steel, and Bajaj Finserv.
In the broader Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading in the red. The US markets also experienced mostly negative trends on Tuesday.
Market experts anticipate near-term impacts from the US Federal Reserve's decision and the upcoming interim budget. The global market's focus is on the Fed's comments regarding the timing and extent of potential rate cuts, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The global oil benchmark, Brent crude, recorded a 0.45 percent decline, settling at USD 82.50 per barrel.
Foreign Institutional Investors (FIIs) were observed offloading equities worth Rs 1,970.52 crore on Tuesday, based on exchange data. The previous trading day saw the BSE benchmark falling by 801.67 points or 1.11 percent, settling at 71,139.90, while the Nifty declined by 215.50 points or 0.99 percent to 21,522.10.
(With Agency Inputs)