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Markets Suffer Marginal Dip Ahead of Fed Policy Outcome

Sensex opens 90.5 point down, Nifty slips 23.55 points in early trade

Markets opened trading marginally down on Wednesday, weighed by tepid global cues, ahead of the US Federal Reserve policy outcome.

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The 30-share S&P BSE index was trading 90.5 points or 0.17 per cent lower at 52,682.55 in initial deals, while the broader 50-share NSE Nifty slipped 23.55 points or 0.15 per cent to 15,845.70.

PowerGrid was the top loser in the Sensex pack, shedding around 1 per cent, followed by Dr Reddy’s, Titan, HDFC Bank, Asian Paints, Reliance Industries and Axis Bank. On the other hand, ONGC, M&M, Bajaj Finserv, Hindustan Unilever, TCS and Infosys were among the gainers.

In the previous session, the Sensex quoted higher by 221.52 points or 0.42 per cent at a new peak of 52,773.05. The Nifty too rose 57.40 points or 0.36 per cent to settle at a fresh high of 15,869.25.

Asian markets showed up mixed results in quiet trading on Wednesday with the anticipation that the US Federal Reserve might give clues on what lies ahead with its massive support for markets.

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Data released by Japan showed its trade surplus jumped 49.6 per cent in May from the previous year, but analysts said that was less than expected and highlights how the world’s third largest economy and its exports may be only slowly recovering from the pandemic.

Investors are also watching data out of China on industrial production and retail sales for indications about the health of the regional economy.

Japan’s Nikkei 225 slipped nearly 0.3 per cent in early trading to 29,359.31. South Korea’s Kospi rose 0.4 per cent to 3,272.11. Australia’s S&P/ASX 200 gained 0.3 per cent to 7,403.40. Hong Kong’s Hang Seng inched down 0.1 per cent to 28,603.84, while the Shanghai Composite was little changed, inching up less than 0.1 per cent to 3,557.48.

“Asian markets are quiet ahead of the Fed,” said Robert Carnell, regional head of research Asia-Pacific at ING. “China’s data dump may stir things up a bit today, but the main focus will be on the Fed's message and any hints they may give.” 

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On Wall Street, the S&P 500 dipped 0.2 per cent to 4,246.59 as the Federal Reserve began a two-day meeting on interest-rates and other policies. A day earlier, the index hit an all-time high amid optimism about the economy.

The Dow Jones Industrial Average lost 0.3 per cent to 34,299.33. The Nasdaq composite fell 0.7 per cent to 14,072.86.

Back home in India, foreign institutional investors (FIIs) remained net buyers in the capital market with purchase value of Rs 633.69 crore recorded on Tuesday.

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