Indian benchmark indices closed strongly higher on Wednesday, with the NSE Nifty 50 gaining 1.1% to close near 24,250 and the BSE Sensex advancing over 800 points, or 1.1%, to settle above 77,600. This marked a significant turnaround from Tuesday's marginal decline, when the Sensex had dropped 69.86 points or 0.09% to 76,765.92 and the Nifty 50 lost 10.60 points or 0.04% to 23,985.35. The GIFT Nifty, an early indicator of benchmark performance, traded at 24,275.50 ahead of Wednesday's session. The strong recovery came after Asian stock markets traded mixed as investors assessed the US Federal Reserve's decision to leave key interest rates unchanged.
The Nifty IT index surged 3.2% to emerge as the top performer, with TCS emerging as the top Nifty gainer, rising 4.47%, followed by Eternal (4.23%), Tech Mahindra (3.82%), Nestle India (3%) and Cipla (2.5%). However, the Nifty FMCG index fell 1.38% to 48,881.20, marking a reversal from its previous two-session rally. Hindustan Unilever dropped 7% after its June-quarter results, while Bharat Electronics fell 4.24%, Coal India declined 4%, Tata Consumer Products lost 2.2% and NTPC slipped 2%. Other notable declines included Emami falling 1.58% and Patanjali Foods dropping 1.07%.
Several major companies reported mixed quarterly results that influenced sector-specific movements. Coforge surged 9.84% after reporting strong US dollar revenue of $592.2 million, up 33.3% YoY, with consolidated net profit rising 63.4% YoY to ₹518.60 crore. However, Indoco Remedies dropped 7.77% despite turning profitable with consolidated net profit of ₹64.99 crore compared to a loss of ₹35.79 crore in the previous year. Tata Chemicals fell 3.66% following a consolidated net loss of ₹17 crore in Q1 FY27, while Tejas Networks slipped 3.83% despite revenue jumping 99.10% to ₹402.16 crore.
The US Federal Reserve kept its benchmark policy rate unchanged at 3.5-3.75% for the fifth straight meeting, in line with Street estimates amid current geopolitical risk premium. The Federal Open Market Committee (FOMC), in its second meeting under Chairman Kevin Warsh, voted 9-3 to hold rates steady, with three regional presidents - Beth Hammack, Neel Kashkari and Lorie Logan - dissenting in favor of a quarter-point rate hike to control inflation. The voting was not unanimous, as nine members backed the decision to hold rates steady. Fed Chair Warsh emphasized the central bank's commitment to delivering price stability, stating the Fed "won't hesitate to act where necessary and appropriate" if inflation fails to move towards its 2% target. The FOMC's statement remained largely unchanged from the previous meeting, acknowledging solid economic activity alongside strong investment and productivity growth.
Asian markets traded mixed as investors assessed the US Federal Reserve's decision, with Japan's Nikkei 225 gaining 1.74% and South Korea's Kospi rising 1.50% after opening, while Australia's ASX 200 slipped 0.50%. The Indian rupee erased most of its intraday gains to end nearly unchanged at 95.86 per US dollar, supported by the sharp decline in Brent crude oil prices and relatively limited foreign institutional investor selling. Market analysts believe that a relatively weaker dollar could ease pressure on the rupee and provide some breathing room for capital flows and external balances. However, experts warn that medium-term risks remain significant, as persistent US inflation could lead to sharper corrections and increased volatility across global markets, including India.
