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Sensex surges nearly 700 pts ahead of US Fed policy meet, Nifty tests 17,800 – The Economic Times

Benchmark equity indices opened higher on Tuesday ahead of the much-awaited US Fed meeting which kicks off today, wherein the market is expecting another rate hike. Buying was seen across all major sectors.

At 9.25 am, the BSE Sensex was trading almost 700 points or 1.14 per cent higher at 59,814.47. Nifty50 was trading at 17,825.15, up over 200 points or 1.15 per cent.

V K Vijayakumar, Chief Investment Strategist at

said that since globally markets are focused on Fedspeak on the 21st September, major breaks from the present levels are unlikely for 2 days. A big correction after the Fed decision is possible only if the rate hike is by 100 bps.

The Indian market continues to show resilience despite global challenges. Major indices like Nifty Bank, auto, FMCG and cement are at record levels with only Nifty IT dragging the benchmark indices, Vijayakumar added.

“The real winners in this volatile market are investors who remained invested without much trading. This strategy may be continued in the near-term,” Vijayakumar said.

Prashanth Tapse, Senior VP – Research at Mehta Equities said that markets witnessed a smart recovery as Nifty gained traction amid a cautious tone. The recovery was seen even as investors reassess aggressive Fed tightening bets amid looming recession risks. Traders now look forward to the important FOMC monetary policy meeting on September 20-21.

“The biggest support to watch out will be at 17429 and below the same, Nifty could simply drift lower to 17161 mark. Nifty’s hurdles are placed at 17867 and then at 18115 mark,” Tapse added.

Among Sensex stocks,

rose 3.24 per cent to Rs 1,265.70. , , , and surged 1.97 per cent, 1.80 per cent, 1.64 per cent and 1.59 per cent, respectively.

Sectorally, the Nifty Metal jumped 1.58 per cent, while Nifty IT Increased 1.54 per cent. Nifty Auto and Nifty Consumer Durables also opened higher. Nifty Midcap50 and Smallcap50 rose 1.29 per cent and 1.09 per cent, respectively.

The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, increased 0.09 per cent to 109.86 level.

On Monday, US markets ended higher, S&P 500, Dow and Nasdaq surged 0.69 per cent, 0.64 per cent and 0.76 per cent, respectively.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)