Sensex Rises 60 Points, Nifty Gains 16 as Fed Decision and India-US Trade Deal Keep Markets Flat

Market Update at 12:30 PM: Indian stock markets closed almost flat on Wednesday, as uncertainty surrounding the potential India-US trade deal and the upcoming US Federal Reserve’s monetary policy decision kept investors on the sidelines. These global cues weighed on market sentiment, capping any significant upside.

The BSE Sensex was trading at 81,398, up by 60 points or 0.07 per cent, while the Nifty50 settled at 24,837, gaining 16 points or 0.06 per cent. The cautious stance from investors comes amid speculation on potential rate changes by the Fed and lack of clarity over trade developments with the US.

Among the Sensex constituents, Larsen & Toubro (L&T) led the gains with a 4 per cent rally, possibly driven by strong order inflows and positive expectations from its upcoming Quarterly Results. Other Large-Cap gainers included NTPC, Bharat Electronics, Sun Pharma, Bharti Airtel, and Bajaj Finance.

On the downside, Tata Motors declined 3.5 per cent, making it the top laggard. Weakness was also seen in shares of Hindustan Unilever, ICICI Bank, Eternal, ITC, and Axis Bank.

In the broader markets, the Nifty MidCap and Nifty SmallCap indices each slipped 0.15 per cent, highlighting a muted performance across Mid-Cap and Small-Cap stocks. Most sectoral indices traded in the red, with the Nifty Realty index falling 0.77 per cent and the Nifty Auto index down 0.45 per cent, reflecting profit-booking in recent outperformers.

Investors may also be awaiting cues from upcoming IPO listings, earnings announcements, or dividend declarations for more clarity on market direction. Meanwhile, global developments including the US Fed's policy outlook and trade negotiations remain key triggers for short-term movement.

Market Update at 10:30 AM: India’s equity benchmarks started Wednesday’s session on a positive note, supported by stronger-than-expected quarterly results from infrastructure major Larsen & Toubro. The Nifty 50 rose 0.28 per cent to 24,890.4 points, while the BSE Sensex gained 0.32 per cent to 81,594.52 as of 9:15 a.m. IST.

Out of 16 major sectoral indices, 14 traded higher at the opening bell. Broader indices also moved in sync, with mid-cap and small-cap stocks adding 0.2 per cent each. Investor sentiment was bolstered by hopes of sustained earnings growth and expectations around upcoming corporate actions, including possible dividend declarations following the results season.

Larsen & Toubro led the gains on the Nifty 50, climbing 3.8 per cent after the company posted better-than-estimated profits for the latest quarter, driven by a rise in overseas contract wins. The positive results follow a string of robust earnings reports from large-cap firms, raising market interest in sectors benefiting from infrastructure and capital expenditure cycles.

Despite the gains, market participants remained cautious ahead of the U.S. Federal Reserve’s policy decision later in the day and concerns over the outcome of an anticipated India-U.S. trade agreement. Broader market trends suggest selective buying in large-cap and mid-cap segments, with traders closely watching for new triggers, including upcoming IPO listings and corporate announcements.

Pre-Market Update at 7:45 AM: On Wednesday, July 30, GIFT Nifty indicated a muted start for the Indian markets, with the benchmark trading near 24,824, down 15 points as of 7:20 AM. Investors are likely to remain cautious ahead of the US Federal Reserve’s policy decision, following a rebound in Indian equities on Tuesday.

Global cues remain mixed as Asian markets traded sideways, and Wall Street ended lower on Tuesday. The Dow Jones Industrial Average fell 204.57 points or 0.46 per cent to 44,632.99, while the S&P 500 and Nasdaq Composite declined 0.30 per cent and 0.38 per cent, respectively.

US President Donald Trump suggested that Indian exports to the United States could face tariffs of up to 25 per cent, though no final decision has been made. Market sentiment also remains watchful of the outcome of two-day trade talks between US and Chinese negotiators, who agreed to work toward extending the current tariff ceasefire.

Back home, market participants are set to react to quarterly results of Larsen & Toubro and NTPC, announced post-market on Tuesday. Key Q1 FY26 earnings scheduled for release today include Power Grid Corporation of India, Interglobe Aviation, Tata Steel, Hyundai Motor India, Punjab National Bank, Indus Towers, Hitachi Energy India, Procter and Gamble Hygiene and Health Care, Kaynes Technology India, KPIT Technologies, Aster DM Healthcare, Indraprastha Gas, JB Chemicals and Pharmaceuticals, and Navin Fluorine International.

Foreign Institutional Investors (FIIs) continued their selling streak on Tuesday, offloading equities worth Rs 4,636.60 crore for the seventh consecutive session. Domestic Institutional Investors (DIIs), meanwhile, extended their buying streak to 17 sessions, purchasing shares worth Rs 6,146.82 crore.

On July 29, Indian indices ended a three-day losing streak. The Nifty 50 rose 0.57 per cent to close at 24,821.10, while the BSE Sensex gained 0.55 per cent to settle at 81,337.95. Heavyweights Reliance Industries and Larsen & Toubro supported the gains.

In commodities, gold prices held steady at USD 3,329.19 per ounce, with traders awaiting the Fed's decision for cues on interest rates. Brent crude was up 0.12 per cent at USD 72.60 per barrel after a 3.5 per cent jump in the prior session, while US WTI crude remained flat at USD 69.20. The US dollar index hovered near a one-month peak at 98.815.

For today, RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.