Equities settled in the negative territory on May 3, 2023, ahead of the Fed's rate-setting meeting verdict, due to be released at 11:30 pm today. Besides, Go First going bust and the rub-off effect on the banking sector weighed on investor sentiment. Selling in heavyweights Reliance Industries (RIL), TCS, L&T, and Infosys dragged the frontline indices lower. 

At close, the S&P BSE Sensex stood at 61,193.30, down 161 points, or 0.26 per cent while the NSE's Nifty settled at 18,089.85, down 0.32 per cent, or 59 points. Shares of public sector units (PSUs) Engineers India, RVNL, SJVN, BHEL, and NLC India, among others rallied up to 15 per cent in the trade.  

India VIX, the volatility index, stood at 11.84 levels, down 0.48 per cent.

"Nifty remained mostly rangebound, following a timid start as the investors await Fed rate decision. On the daily chart, a small red-bodied candle has formed. The sentiment remains positive as the index has sustained above 18,000. Over the short term, the index is likely to remain in the range of 18,000 and 18,200. A decisive move above 18,200, may take the index towards 18,500," said Rupak De, Senior Technical Analyst at LKP Securities.

TOP NEWSMAKERS

Shares of InterGlobe Aviation rallied as much as 8 per cent to hit a 52-week high of Rs 2,235.95 apiece on the BSE in the early morning trade, a day after the Wadia Group-owned air carrier Go First filed for insolvency, citing a cash crunch. That apart, a sharp drop in crude oil prices in the previous session, too, aided the stock price. The stock ended at Rs 2,163.90, up over 4.5 per cent. On the other hand, Manappuram Finance slid over 12 per cent after news reports said the Directorate of Enforcement (ED) conducted searches at the company's Thrissur offices in Kerala. As per a report by the TV channel Zee Business, the searches are being conducted related to deposits. 

GLOBAL MARKETS

European stocks and US stock futures rose on Wednesday with hopes hinging on the Federal Reserve signalling later in the day that US interest rate hikes might peak soon and the soft landing that central banks have been angling for is in sight. Oil prices extended losses on Wednesday after plunging 5 per cent in the previous session, as investors fretted about the health of the US economy ahead of an expected Federal Reserve interest rate hike later in the day, Reuters reported.