Domestic stock markets started Wednesday’s session on a positive note amid cautious gains in global equities, ahead of the outcome of a two-day policy meeting of the US central bank. The S&P BSE Sensex rose 117.05 points – or 0.30 per cent – to touch 39,161.40 at the strongest level in early trade, and the broader NSE Nifty 50 benchmark climbed to as high as 11,546.55, up 24.75 points – or 0.21 per cent – from its previous close. Buying interest across most sectors pushed the markets higher.
At 9:21 am, the Sensex traded 60.91 points – or 0.16 per cent – higher at 39,105.26, while the Nifty was up 17.25 points – or 0.15 per cent – at 11,539.05.
Analysts awaited a keynote address by Reserve Bank of India Governor Shaktikanta Das to members of industry body FICCI.
Official data earlier this week showed consumer inflation in the country eased slightly in August, but remained above the RBI’s medium-term target range for a fifth straight week, supporting views that the central bank will avoid lowering key rates further in its upcoming review, in October.
Shares in other Asian markets moved higher on Wednesday, extending a rally driven by upbeat Chinese and US economic data, as investors awaited the Federal Reserve’s view on the world’s largest economy at its policy meeting.
Following robust industrial output and retail sales data from China and higher US factory production investors are focusing on the US central bank’s policy statement due Wednesday, the first since Chair Jerome Powell announced an increased tolerance for higher inflation.