Sensex flat ahead of anticipated US Fed decision

Mumbai, Sept 18: India's equity indices opened flat on Wednesday, reflecting a mixed trend in global markets as investors await the US Federal Reserve's monetary policy decision later today.

As of 9:42 a.m., the Sensex was up 38 points, or 0.05%, at 83,117, while the Nifty rose by 10 points, or 0.05%, to reach 25,430.

In early trading, banking stocks led the way, with the Nifty Bank index gaining 237 points, or 0.45%, to 52,424. Midcap and smallcap stocks also showed little movement; the Nifty midcap 100 index slipped 6 points to 60,174, while the Nifty smallcap 100 index climbed 66 points, or 0.34%, to 19,531.

Sector-wise, major gainers included Auto, PSU Bank, financial services, FMCG, energy, infrastructure, and private banks. In contrast, the IT, pharma, metal, and real estate sectors lagged behind.

Within the Sensex constituents, top gainers included Bajaj Finance, Bajaj Finserv, UltraTech Cement, SBI, Power Grid, ITC, HDFC Bank, IndusInd Bank, Tata Motors, and Kotak Mahindra Bank. Conversely, the biggest losers were Tech Mahindra, Infosys, TCS, Wipro, HCL Tech, Asian Paints, Sun Pharma, Tata Steel, and Bharti Airtel.

Market experts noted the importance of the Fed's upcoming decision, indicating that the global market sentiment reflected a wait-and-watch approach. They suggested that an ideal outcome would be a 25 basis point rate cut accompanied by a dovish message signaling potential further cuts. Positive retail sales data alongside a weakening labor market supports this possibility.

Experts also recommend reducing exposure to mid and small caps while increasing investments in large caps for better performance in the medium to long term.

On September 17, Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) net purchased shares worth Rs 482.69 crore, while Domestic Institutional Investors bought shares worth a net of Rs 874.15 crore.