(Reuters) -India’s benchmark indexes were muted in early trade on Wednesday, mirroring the sentiments in other Asian markets, as investors remained cautious ahead of the U.S. Federal Reserve’s policy decision.
The NSE Nifty 50 gained 0.13% to 22,862.85, while the BSE Sensex rose 0.11% to 75,381.52 as of 10:14 a.m. IST.
Investors globally are waiting for the Fed’s commentary on the U.S. economy and the future rate trajectory to assess the impact of changes in U.S. trade policies. The central bank is expected to hold rates steady later in the day.
Asian markets were mixed, with the MSCI Asia ex Japan trading flat. [MKTS/GLOB]
Back home, the gains in financials and metal stocks lent support to the indexes, offsetting the losses in information technology stocks.
The metal index was up around 1% after the government recommended a safeguard duty of 12% on some steel imports for 200 days to curb imports.
Tata Steel and JSW Steel rose 2% and 1.2%, respectively, and were the top percentage gainers on Nifty.
Heavyweight financials rose 0.5%, extending gains to the third session. Bajaj Finance and Muthoot Finance led the gains, advancing around 2% each.
IT companies , which earn a significant share of revenue from the U.S, fell 1.7% ahead of the Fed’s rate decision.
“Macro uncertainties make it tough to forecast fiscal year 2026 earnings outlook for IT,” Citi Research said, terming valuations “not attractive enough” in the sector.
Infosys and Tata Consultancy Services fell close to 2% each and were the biggest drag for the sector and the blue-chip indexes.
Ten of the 13 major sectors rose. The broader small- and mid-caps added about 1% each.
Easing brent crude oil prices aided sentiments, after Russia agreed to U.S. President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily.
Vodafone Idea rose 4% after launching 5G services in Mumbai.
GR Infraprojects soared 10% on receiving a letter of acceptance for a project worth 42.63 billion rupees.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Sonia Cheema)
