The recent decline in the markets was halted as they climbed 0.5 percent. The auto, energy, FMCG, and capital goods sectors all saw significant gains, as the Nifty opened with an upward gap and stayed range-bound until the very end.
The wider indices also edged up and finished in the black. Bulls are unwilling to let up, citing strong support around the 19300–19500 range. However, any unfavorable shock from the world front could lead to prolonged consolidation.
Nifty and Sensex
Traders continue to concentrate on sectors with greater relative strength and plan their exits. Compared to Tuesday’s close of 81.87 per dollar, the Indian rupee ended the day 13 paise worse at 82.
The Indian Rupee fell as traders modified their positions in anticipation of tonight’s FOMC announcement and importers’ month-end dollar demand.
- Nifty gains in auto, energy, FMCG, and capital goods sectors.
- Indian Rupee drops amid FOMC announcement and importer demand.
- Market optimistic as Nifty nears 20,000, awaiting bullish trend.
The Rupee suffered from reports of RBI intervention as well. The IMF updated its global growth prediction to 3% from 2.8% previously and increased India’s FY2024 growth forecast from 5.9% to 6.1%.
The prospect of a rate hike by the US Federal Reserve will cause risk aversion in global markets, according to the IMF, which expects the Rupee to trade with a modest negative bias.
The rupee may also suffer from high crude oil prices and month-end dollar demand from importers. Shortly, it is anticipated that the USDINR spot will trade between 81.60 and 82.50.
The market is in a very good mood, especially as the Nifty gets closer to the anticipated 20,000 level. The long-awaited massive bull market has begun, and if the current bullish trend holds, the next feasible milestone will be around 20,500.
