Mumbai: Indian equity benchmarks rebounded in early trade on Wednesday, September 16, as investors returned to value buying following the sharp sell-off in the previous session. However, high crude oil prices, foreign fund outflows and caution ahead of the US Federal Reserve’s policy decision limited gains.
The 30-share BSE Sensex climbed 244.02 points to 74,293.25 in early deals. The broader NSE Nifty gained 77.20 points to trade at 23,201.85.
Reliance, M&M Lead Gains
Mahindra & Mahindra, Reliance Industries, Hindustan Unilever, HCL Technologies, ITC and State Bank of India were among the major gainers in the Sensex pack.
InterGlobe Aviation, Tata Steel, Tata Consultancy Services and Eternal were among the stocks trading under pressure.
Asian markets also provided support. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng traded in positive territory. US markets, however, closed lower on Tuesday.
Oil, Fed Decision In Focus
Brent crude, the global oil benchmark, declined 0.63% but remained elevated at $108.1 per barrel, keeping inflation and India’s import costs in focus.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the recovery could remain fragile because of elevated crude prices and high global bond yields.
The US Federal Reserve’s policy decision later on Wednesday is expected to remain a major trigger. Investors will closely track the central bank’s guidance on interest rates and future monetary tightening.
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Foreign institutional investors continued selling Indian equities, offloading shares worth ₹2,977.86 crore on Tuesday, according to exchange data.
Sharp Fall In Previous Session
The rebound followed Tuesday’s steep decline. The Sensex plunged 777.94 points, or 1.04%, to close at a three-month low of 74,003.82.
The Nifty fell 279.50 points, or 1.19%, to settle at 23,118.60, marking its lowest closing level since April 6.
