Pre-open Points to Positive Start for Sensex, Nifty as Investors Await Fed Decision

Mumbai, June 17: Indian shares traded higher at pre-open on Wednesday signalling a positive start for benchmark indices as investors await monetary policy decision by the US Federal Reserve after a three day rally.  

Nifty 50 traded 0.18% higher at pre-open while Sensex rose 0.23% even as Gift Nifty futures traded 0.07% higher. 

The Federal Reserve is expected to leave rates unchanged, though markets are bracing for a potentially hawkish message from new Chair Kevin Warsh at his first policy meeting.  

Brent crude hovered near $79 a barrel, steady after a sharp 5.1% decline in the previous session that dragged prices to their lowest settlement since March 2.  

IT and pharma stocks will remain in focus amid the Fed policy decision. Conglomerate Reliance Industries could attract attention after a Financial Times report said its telecom subsidiary, Reliance Jio Infocomm, is preparing to file draft papers for an estimated $4 billion IPO in the coming days, ahead of Chairman and Managing Director Mukesh Ambani’s speech on Friday. 

Spotlight will also be falling on Infosys, Sona BLW Precision Forgings, Wipro, and Krishna Defence & Allied Industries. Infosys partnered with Finnish engineering and technology company Valmet to transform IT operations through AI-driven information management and automation solutions. Sona BLW Precision Forgings approved an investment of ₹62.6 crore to expand its capabilities in manufacturing components and systems for the robotics industry. Wipro launched a dedicated AI centre in Bengaluru focused on developing and scaling applications built on Anthropic’s Claude AI models. Krishna Defence & Allied Industries secured a ₹45.64 crore order from the Ministry of Defence to supply special steel products for shipbuilding projects. The contract is scheduled to be executed over the next eight months. 

As for global cues, Asian equities were mixed in early trade as investors refrained from taking aggressive positions before the Fed’s policy announcement and updated economic forecasts. Japan’s Nikkei 225 rose 0.75%, while South Korea’s Kospi gained 0.18%. 

However, weakness in other regional markets kept sentiment in check. The MSCI Asia Pacific ex-Japan index fell 0.4%, while Hong Kong’s Hang Seng declined 0.7%, reflecting investor caution over the global interest-rate outlook and profit-booking after recent gains. 

Meanwhile, markets continued to draw support from easing tensions in the Middle East following progress in U.S.-Iran negotiations. The prospect of improved oil supplies pushed crude prices lower, boosting risk appetite and offering relief to oil-importing nations, including India. 

U.S. equities finished on a mixed note overnight as investors awaited fresh signals from the Federal Reserve. The Dow Jones Industrial Average closed at a record high, supported by lower energy prices and gains in cyclical sectors, while the S&P 500 and Nasdaq ended modestly lower. 

The Fed is widely expected to keep interest rates unchanged. Market participants will instead focus on the central bank’s updated economic projections and commentary for clues on the future path of monetary policy and the possibility of rate cuts later this year. 

European shares edged higher on Tuesday, with the pan-European STOXX 600 index remaining near all-time highs. Sentiment was supported by declining oil prices and hopes that improving geopolitical conditions could strengthen the global growth outlook. 

Banks and industrial stocks led the advance, helping European markets recoup losses triggered by earlier Middle East tensions and reinforcing confidence in risk assets. 

Source

• Exchanges