Sensex and Nifty Turn Volatile After Early Gains; Markets Await Fed Outcome

Mumbai, September 15: Both the equity benchmarks of the Indian markets (Nifty 50 and Sensex) slipped into the red after moving a bit sideways in the green during mid-morning on Monday. This was largely due to the selling pressure on major sectors and stocks as investors booked profits after the previous week’s sharp rally. The market participants also showed caution related to the expected outcome of the US Federal Reserve policy (related to rate cuts).

The investors are also interested in knowing the eventual outcome of the trade deal between the US and India, which showed some signs of rebound in the previous week.

Indices Slip in Volatile Trade

At 10:40 am, the BSE Sensex was down 31.09 points at 81,873.61, while the NSE Nifty fell 19.35 points to 25,094.65. Both indices had opened higher earlier in the session but soon lost momentum amid choppy trade.

Sectoral Moves

On the Sensex pack, Bajaj Finance, Eternal, Tata Motors, Adani Ports, Power Grid and State Bank of India were among the key gainers. Meanwhile, Infosys, Sun Pharma, Tata Consultancy Services and Tech Mahindra dragged the market lower.

Global Market Influence

The trends from the Asian markets were largely positive as South Korea’s Kospi, Shanghai’s SSE Composite Index, and Hong Kong’s Hang Seng all posted gains. There were mixed signals from the US indices (Dow Jones and NASDAQ composite), which kept investors on edge.

Previous Week’s Rally

The previous week saw both the equity benchmark indices gaining on Friday due to the overall hopes of positive policy developments by the Federal Reserve and improving geopolitical situations between India and the US, with the expectations of a trade deal soon. On Friday, the Sensex gained 355.97 points to close at 81,904.70, its fifth straight day of gains, while the Nifty rose 108.50 points to settle at 25,114, its eighth consecutive advance. For the week, the Sensex rose 1.47 per cent and the Nifty climbed 1.50 per cent.

Other Market Cues

Brent crude futures were up 0.60 per cent at USD 67.39 per barrel. Foreign institutional investors (FIIs) remained net buyers, investing Rs 129.58 crore in equities on Friday, according to exchange data.

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