FIRST TRADE: Indices muted, Nifty holds 18,700; Tata Group stocks rally

The domestic equity market opened on a muted note on Wednesday. The S&P BSE Sensex was trading at 63,117.67, down 26 points, or 0.04 per cent while the NSE's Nifty traded at 18,723.40, down 7.25 points, or 0.04 per cent. Among Sensex stocks, Tata Steel was the top gainer, followed by Power Grid, and Tata Motors. On the contrary, Bharti Airtel was the biggest loser. 

"Markets may witness an upward trajectory in Wednesday trades following sharp gains in the US markets after the country's inflation moderated, thus raising hopes that the Fed may take a dovish stance in the wake of cooling inflation. Another global factor that could help keep local traders in good stead is the lowering of a key interest rate by the People's Bank of China. The move was aimed at injecting additional funds into the banking system to prop up growth. Investors will also pay close attention to FOMC Chairman Jerome Powell’s comments on the policy outlook. In case the Fed keeps rates unchanged, the feel-good factor could have a rub-off effect on the benchmark Nifty that may help the index reach its all-time high of 18,888 sooner rather than later," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

BROADER MARKET

The S&P BSE MidCap index traded 0.05 per cent higher at 28,002.41 levels while the S&P BSE SmallCap index was trading 0.26 per cent higher at 31,959.78 points.