Closing Bell: Indian frontline indices traded in a narrow range on Tuesday ahead of the Budget 2023 and Federal Reserve’s Federal Open Market Committee (FOMC) meeting which begins today. While S&P BSE Sensex traded in a 680 points range, the broader market NSE Nifty50 traded in 200 points range. Sensex ended at 59,549.90, up 50 points or 0.08 per cent while Nifty50 settled at 13.20 points or 0.07 per cent higher at 17,662.15. Banking gauge Nifty Bank finished at 40,655.05, up 267.60 points or 0.66 per cent from the Monday closing. 

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It was second consecutive positive closing, today. India VIX, a measure of volatility in Nifty was 16.88, down 4.71 per cent. The rally in index was supported by ICICI Bank, ITC and State Bank of India (SBI).

In the 50-share Nifty50, 24 stocks advanced, 25 declined while 1 remained unchanged. The top gainers were SBI, Mahindra & Mahindra, Power Grid, UItraTech Cement and Adani Ports while the top osers were Bajaj Finance, TCS, Tech Mahindra, Britannia Industries and HDFC Life. 

rupee depreciated by 41 paise to close at 81.93 (provisional) against the US dollar on Tuesday after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of current account deficit. At the interbank foreign exchange, the domestic unit opened weak at 81.61 against the dollar, and lost further ground to fall below the 82 per US dollar level. The rupee finally ended at 81.93, registering a decline of 41 paise over its last close.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.15 per cent to 102.43. Forex traders said investors are bracing for interest rate decisions from the Federal Reserve, and the Union Budget for 2023-24, both scheduled to be announced on Wednesday. PTI 

"The rupee fell  to below  82.00 as event risks in the next four days made traders jittery and they bought  dollars. The dollar index also rose from 101.76 yesterday to 102.60. A major  UK based bank was heard buying for equity outflows of FPIs. The market has to counter the budget, FOMC tomorrow, BOE and ECB on 2nd and NFPR on 3rd. Asian currencies have also weakened since morning," Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP said.

Expert Take

"It was again a roller-coaster day for the Indian markets but the range was comparatively narrower from yesterday. Nifty has reversed from the support zone and managed to close above its 200 EMA placed at 17,550 levels. A relief rally can be expected up to 17,900 levels from where selling pressure may be witnessed again until 18050 - 18100 takes out on closing basis. On the lower side immediate support is seen at 17,550 and below that at 17,400 levels." - Rohan Patil, Technical Analyst, SAMCO Securities

"In the case of Nifty, a gap up opening on January 31 was followed by a steep selling pressure in the beginning of the session. Nevertheless, the index managed to recover as the day progressed & closed in the green. With this bounce, the index is heading towards the level of 17800, which holds the key for further course of action from a short term perspective. If the index manages to surpass 17800 then it will be poised for a larger up move. Till then a consolidation in the range of 17400-17800 is possible." -- Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)