Markets end flat ahead of US Fed interest rate decision, ONGC close 5.6% higher, India VIX slumps 9.9%

Equity markets ended Tuesday’s session on a flat note as market participants braced for the release of the US consumer price inflation data and the Federal Reserve’s policy decision on Wednesday. The benchmark NIFTY50 closed 0.02% higher on Tuesday while the SENSEX ended the day 0.04% lower.

Although the Fed is widely expected to keep the rates unchanged, investors and traders will be on the lookout for any changes in the projections for rate cuts during the year.

Moreover, with the new government formation out of the way, volatility continued its downward trend with the India VIX plunging nearly 10% to 14.76 on Tuesday. The index has declined nearly 33% in the last five sessions. Asian markets, too, sent out mixed signals with the Nikkei 225 closing 0.25% higher, the Kospi ending 0.15% higher and the Hang Seng ending the day over 1% lower.

Indices

The benchmark NIFTY50 closed the day at 23,264 after having hit an intraday high of 23,389.45. Gains in ONGC (+5.69%), Tata Motors (+1.75%) and Adani Ports (+1.59%) supported the index while Kotak Bank (-1.3%), Divi’s Lab (-1.27%), and ITC (-0.95%) acted as laggards.

The SENSEX closed Tuesday’s session at 76,456. The 30-stock index had hit a high of 76,860.53 during the day. Gains were seen in L&T (+1.64%), Tata Motors (1.26%), Maruti (+1.14%), and NTPC (+0.93%). On the other hand, Kotak Bank (-1.44%), Asian Paints (-1.18%), ITC (-0.95%), and Reliance Industries (-0.92%) were the laggards.

The Bank Nifty ended the session lower by 0.15% at 49,705 after hitting a high of 49,970. Federal Bank (+1.43%), Punjab National Bank (+0.59%), and SBI (+0.44%) were the top gainers while Kotak Bank (-1.3%), Bank of Baroda (-0.71%) and Bandhan Bank (-0.67%) were the top losers.

Broader Market

The broader market saw the majority of the indices trading in the green. The Nifty Midcap 100 (+0.81%) and the Nifty Smallcap 100 (+0.55%) posted marginal gains.

Among the sectors, Nifty Media (+1.75%), Nifty Oil & Gas (+1.33%), Nifty Realty (+1.13%), and Nifty Auto (+0.83%) saw reasonable gains. The Nifty Healthcare index (-0.50%), Nifty Pharma (-0.43%) and Nifty FMCG (-0.34%) ended in the red.

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