On Wednesday morning, trading in Indian stock indices increased. The absence of new bets at higher levels was a major factor in their relative stability over the previous two sessions. Some investors appeared to be taking profits after recently accruing gains. Many analysts have noted that a rally from the current peak seems unlikely given the higher valuations, and that is what has appeared to be happening over the past two or three sessions.
The indices touched all-time highs last week. In the past month, the indices — Sensex and Nifty — have cumulatively gained about 6 percentage points.
Sensex and Nifty were 0.7 per cent higher each at the time of writing this report. Among the Nifty 50 companies, 41 were in the green.
L&T, Reliance Industries, Tata Motors, ITC, and UPL were the top gainers among the Nifty 50 companies, whereas SBI Life, Divislabs, Cipla, Apollo Hospitals, and ONGC were the top losers.
The next US Fed monetary policy meet is scheduled for July 25-26. The outcome of the meeting will be announced Wednesday midnight (Indian time).
The US Federal Reserve’s monetary policy committee paused the key interest rate in its latest meeting. The policy rate has been maintained at 5.0-5.25 per cent, which was near zero after the outbreak of COVID-19.
Barring the latest pause, the US central bank has hiked the interest rate for the tenth consecutive time which was necessitated in the fight against soaring inflation.