Sensex, Nifty hold morning gains at midday; IT drags as metals, FMCG shine ahead of Fed call

At midday on Wednesday, equity benchmarks were maintaining modest gains, though the rally remained uneven, with technology stocks emerging as the key drag force. The BSE Sensex closed at 74,371.81, up 367.99 points or 0.50 percent from the previous close. The NSE Nifty 50 stood at 23,247.35, advancing 128.75 points or 0.56 percent from its previous close.

Both indices began the day on a positive note, hovering around those levels throughout the afternoon without significant gains. Market breadth on the BSE suggested a cautious sentiment, with 2,331 stocks declining versus 1,791 advancing, and 236 remaining unchanged. Notably, 234 stocks touched 52-week lows, while only 70 reached 52-week highs.

Lower circuit participants outnumbered upper circuit traders, indicating a lack of a widespread recovery. Among Nifty 50 gainers, HDFC Life Insurance led with a 2.31 percent rise to ₹528.00, followed by Nestlé India at 2.26 percent to ₹1,392.80. Tata Consumer Products and ITC both gained 2.15 percent and 2.05 percent respectively, reaching ₹1,007.30 and ₹263.30.

Hindalco, a metals counter, advanced 1.95 percent to ₹977.40, buoyed by a recovery in global commodity prices. The technology sector, however, reversed its Tuesday gains and became the biggest laggard, with TCS, Wipro, Infosys, Tech Mahindra, and IndiGo all slipping between 1.10 percent and 1.69 percent. Precious metals were on an upward trajectory ahead of the Fed decision.

COMEX Gold traded near $4,370, up 1.02 percent, while MCX Gold rose 0.56 percent. COMEX Silver outperformed with a 2 percent gain, surpassing $65, while MCX Silver saw a 1 percent increase near ₹2,35,000, attracting short-covering interest. Crude oil exhibited signs of intraday consolidation, pulling back 1.53 percent on the MCX but holding above the ₹10,000 mark.

WTI crude was near the $105–106 zone, down 0.60 percent. The rupee remained under pressure, with USD/INR trading near 95.87, just below the 96.00 resistance, with an RSI at 63 indicating sustained dollar bullishness. RBI interventions by state-run banks were restraining the rupee's depreciation pace, though future movement will depend on the Fed outcome.

The Nifty 50's resistance lies at 23,300–23,400, while Bank Nifty, which opened near 56,008, faces resistance at 56,200 and a key hurdle at 56,700–56,800. The Nifty 50's support is at 23,100–23,070, coinciding with the June low, and a break below this could exacerbate selling pressure. Investors are on standby as the Federal Open Market Committee's decision looms later tonight, with a potential 25-basis-point rate hike, though Fed Chair Kevin Warsh's comments on inflation and future rate path are expected to drive volatility in currencies, bonds, and equities through the week.