Indian Markets Stay Cautious Ahead of Fed Decision; Metals and Financials Lead Gains
India’s benchmark indexes remained subdued in early trade on Wednesday, tracking cautious sentiment in Asian markets ahead of the U.S. Federal Reserve’s policy decision. The NSE Nifty 50 rose 0.13% to 22,862.85, while the BSE Sensex edged up 0.11% to 75,381.52 by 10:14 a.m. IST. Investors globally awaited the Fed’s commentary on the economic outlook and future interest rate trajectory, with expectations that the central bank would hold rates steady.
Gains in financial and metal stocks helped support the indexes, offsetting losses in the IT sector. The metal index climbed 1% after the Indian government recommended a 12% safeguard duty on certain steel imports for 200 days. Tata Steel and JSW Steel led the sector, rising 2% and 1.2%, respectively. Financial stocks extended their rally for the third consecutive session, with Bajaj Finance and Muthoot Finance advancing around 2% each. In contrast, IT stocks dropped 1.7% due to macroeconomic uncertainties, with Infosys and Tata Consultancy Services falling nearly 2% each.
Broader market sentiment remained positive as small- and mid-cap indexes gained around 1% each. Easing Brent crude oil prices also supported investor confidence after Russia agreed to a temporary halt on energy infrastructure attacks with Ukraine. Meanwhile, Vodafone Idea surged 4% after launching 5G services in Mumbai, and GR Infraprojects jumped 10% after securing a project worth ₹42.63 billion.
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