Sensex, Nifty, Fed outcome: Key stock indices on Monday climbed for the second straight session, in line with gains seen overnight in the US market, as investors judged the recent correction as excessive, ahead of the US Fed policy outcome.
The two-day FOMC meet will kick start today and, chances are the interest rate will remain on hold, as the Fed remains patient amid downside risks to growth and uncertainty around trade policy. That said, eyes would be on the Fed commentary regarding the US economy and its policy.
The BSE Sensex jumped 556.87 points, or 0.75 per cent, to 74,726.82. Nifty stood at 22,670.55, up 161.80 points or 0.72 per cent.
"The median rate projections in the dot plot are likely to remain unchanged through 2027, with the Fed still signaling two cuts in 2025. Chair Powell’s press conference is likely to emphasise ongoing uncertainty," Nomura said.
The foreign brokerage noted that the Fed Chair Jerome Powell has been less willing than many of his colleagues to take a clear stance on the inflationary impact of tariffs, noting that it is important to focus on the total impact of the administration’s policies.
ICICI Bank climbed 2.53 per cent to Rs 1,300.40 and was the op index gainer. Zomato, advanced 2.16 per cent to Rs Rs 208.25. M&M, Tata Motors, Larsen & Toubro and Power Grid added over 1 per cent each. The dollar index, which has inverse relation with EM equities, is down in the past few weeks. US 10-year US treasury has also declined to 4.285 levels from 4.8 per cent in January.
"Broad indications are that the market has bottomed out, even as further corrections cannot be completely ruled out. Domestic tailwinds are not strong enough to take the market to higher levels on a sustained basis since the global headwinds from tariff wars will counter the domestic tailwinds," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
IRCON International Ltd climbed 7 per cent after the PSU secured an order worth Rs 1,096 crore for the construction of a new secretariat complex in Shillong by the government of Meghalaya. The order comprises campus infrastructure on an engineering, procurement and construction basis. It is expected to be executed within three years.
IndusInd Bank Ltd rose 2 per cent in Tuesday's trade and were up for the second straight session, as credit rating agency Moody’s affirmed its 'Ba1' long-term foreign and local currency deposit and issuer ratings for IndusInd Bank suggesting a stable outlook. That said, it placed its 'ba1' baseline Credit Assessment (BCA) and adjusted BCA under review for a potential downgrade.