Indian markets rally ahead of Fed decision, Sensex up 632 pts

The Indian stock market continued its winning streak on Wednesday, with Nifty breaching 23,150 for the second straight session, driven by strong global sentiment ahead of the U.S. Federal Reserve's key rate decision and the Union Budget,while FMCG stocks lagged.At close, the Sensex was up 631.55 points or 0.83 percent at 76,532.96, and the Nifty was up 205.85 points or 0.90 percent at 23,163.10.
Shriram Finance, Bharat Electronics, Wipro, Tata Motors, SBI Life were the top gainers on the Nifty while losers included Asian Paints, Maruti Suzuki, BPCL, Britannia Industries, ITC.On the sectoral front,media, capital goods, IT, metal, realty rose 2-3 percent, while auto, bank, pharma, oil & gas gained between 0.5-1.5 percent. The FMCG index was down 0.5 percent.BSE Midcap index added 2.5 percent and Smallcap indices rose 3.2 percent.
Rupee Close:
On 29 Jan'25,the Indian rises 1 paisa to close at 86.56 against U.S. dollar on Wednesday, by positive domestic markets, while a strong U.S. dollar and a recovery in crude oil prices capped sharp gains.Forex traders reportedly stated the U.S. dollar gained on expectations of a no rate cut by the Fed in its Federal Open Market Committee (FOMC) decision. Besides, global risk sentiments were dampened amid tariff threats by U.S. President Donald Trump, they said.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the Indian market has demonstrated resilience in anticipation of the upcoming Union Budget, with expectations of measures aimed at stimulating consumption and job creation. Small and mid-cap stocks experienced a relief rally, while key index valuations are trading at a 5-year average, which appears attractive given the strong long-term domestic outlook. Investors are now focusing on the upcoming FOMC meeting, with general expectations that the Fed will maintain its current hawkish stance.
Market experts recommended five stocks to buy—Suzlon Energy, Central Bank of India, Punjab National Bank, Equitas Small Finance Bank, and Steel City Securities Ltd.

(Business Correspondent)