CHENNAI: Indian benchmark indices traded with mild gains in the mid-morning trade on Wednesday, supported by strong corporate earnings from key players like Larsen & Toubro (L&T), even as caution prevailed ahead of the US Federal Reserve’s policy decision.
The Nifty 50 was seen trading above 24,850, up around 0.08%, while the BSE Sensex added over 180 points to hover near 81,370. The broader BSE Midcap and Smallcap indices also registered marginal gains.
Top gainers and losers
L&T led the gains on the Nifty, rallying nearly 4% after reporting a strong 30% year-on-year rise in Q1 profits, which beat street estimates. Other notable gainers included NTPC, Sun Pharma, Tata Consumer Products, Grasim Industries, and Axis Bank.
On the flip side, Tata Motors was the top loser, falling around 3.5% following concerns related to its reported interest in acquiring Iveco for over $4.5 billion. Other laggards included Hero MotoCorp, Hindustan Unilever (HUL), IndusInd Bank, and Mahindra & Mahindra (M&M), each shedding between 1% and 2%.
Sectoral performance
Sector-wise, weakness was seen in auto, media, and realty indices, each declining about 0.5%. Meanwhile, buying interest remained intact in capital goods, pharma, and power stocks, which helped cushion the broader market.
Broader market and global cues
The overall sentiment remained mixed as investors awaited cues from the US Federal Reserve’s interest rate policy and commentary on inflation. Additionally, concerns over a potential US–India trade standoff continued to linger, with reports suggesting that export tariffs of up to 25% could be imposed on Indian goods if no agreement is reached by August 1.
Foreign institutional investors continued to be net sellers, pulling out Rs 4,640 crore on Tuesday. July's cumulative FII outflows have now crossed $1.6 billion.
Despite global uncertainty, Indian markets recovered from a three-day losing streak on Monday, with value buying in heavyweights like Reliance Industries and HDFC Bank supporting the rebound.
Outlook
According to market analysts, the near-term direction of the market will likely hinge on global macroeconomic developments, foreign fund flows, and domestic earnings announcements. While gains in infrastructure and pharma sectors signal investor preference for fundamentally strong counters, they believe.