Domestic equity benchmarks ended in the green on Wednesday, buoyed by positive global sentiment, particularly strong U.S. job data, while anticipation surrounding the ongoing Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting kept traders cautious. The BSE Sensex gained 260.74 points, or 0.32%, to close at 80,998.25. Meanwhile, the NSE Nifty advanced 77.70 points, or 0.32%, to settle at 24,620.20.
Broader market indices outperformed the large-cap indices. The Nifty Midcap 100 index rose by 407.55 points (0.71%) to 57,924.65, and the Nifty Smallcap 100 index climbed 142.95 points (0.79%) to end at 18,257.10.
From a sectoral perspective, most indices finished in positive territory, with notable gains in auto, IT, PSU banks, financial services, pharmaceuticals, FMCG, metals, media, energy, and private banks. The realty index was the sole laggard, closing in the red. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty continues to exhibit a subdued tone as traders remain on the sidelines ahead of the RBI’s policy outcome.
“The market is expected to trade sideways for another session until clarity emerges from the central bank’s policy and commentary on Friday,” he said. “Support is seen at 24,500. A breach of this level could trigger further downside, while resistance is expected at 24,750 and 24,900.” Vikram Kasat, Head of Advisory at Prabhudas Lilladher, observed that domestic markets opened on a firm note, supported by positive global cues and heightened speculation around the RBI’s monetary stance.
“The RBI MPC meeting has added an element of anticipation, with market participants divided over the likelihood and extent of a possible rate cut. Meanwhile, upbeat U.S. labour market data offered a lift to global equities,” Kasat explained. While the Nifty’s hold above 24,500 indicates constructive near-term sentiment, analysts believe the next phase of market movement will be shaped by the RBI’s decision and evolving global macroeconomic trends.
In currency markets, the Indian rupee weakened by 25 paise to close at 85.87 against the U.S. dollar, inching closer to the 86.00 threshold. The rupee is expected to trade in the range of 85.50 to 86.40 in the near term, as foreign institutional investors continue to stay in sell mode ahead of the policy announcement.
