The Indian markets snapped a three-day losing streak to open in the green on Wednesday, as the Sensex gained around 250 points, while the Nifty50 opened above the 16450 level. Almost all sectoral indices were in the green at the market open except the FMCG sector was down marginally.

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At the market open, The BSE Sensex was up 238 points or 0.43 per cent to the 55345.5 level, while Nifty50 was up 59 points or 0.36 per cent to 16475 levels at the market open. Even the broader markets opened positive as both mid and small-cap surged by 0.26 and 0.55 per cent respectively.

The Reserve Bank of India on Wednesday is scheduled to announce its bi-monthly monetary policy decision. The central bank is expected to raise the key interest rates for a second straight time today.

Of 50 scrips on Nifty 38 stocks advanced and 12 declined at the market open. Auto major Mahindra and Mahindra became top gainer, up nearly 1.5 per cent, followed by Tata Steel and ONGC each up over 1 per cent, while Asian Paints and Infosys were up nearly 1 per cent minutes after the open.

On the contrary, Bajaj Auto became the top loser, down nearly 0.7 per cent, followed by Power Grid, Sun Pharma, Tata Consumer and Shree Cement each down between 0.4-0.6 per cent in the early morning trade on Wednesday.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “Up to 50 basis points rate hike by the RBI is already discounted by the market and, therefore, the central bank's guidance on inflation and rates will be more important.

Inflation for FY23 is likely to be around 6.8 per cent forcing the RBI to sound hawkish, he said.

“For the market, more important than today's policy announcement would be the US inflation data to be released on Friday. If the US inflation print comes higher than expected, markets will start discounting a more aggressive Fed and this can cause a sharp market correction,” Vijayakumar said.

On the other hand, if the data indicate inflation peaking and potentially drifting down, the US market will bounce back providing a lift up for global markets, he added, adding that the one predictable trend in India is that FPIs will continue to sell on every rally.