Indian Markets Near All-Time Highs as Investors Await Fed Rate Cut Decision

Indian markets opened near record highs with Nifty 50 at 25,416.90 and BSE Sensex at 83,084.63. Investors are cautious ahead of the anticipated Fed rate cut. Mixed global market trends persist, with Asia showing a decline and the U.S. markets displaying varied movements.

On Tuesday, Indian markets opened near all-time highs, with the Nifty 50 index starting the day at 25,416.90 points, a surge of 33 points or 0.13 percent, while the BSE Sensex gained 95 points to open at 83,084.63.

Both indices are approaching their all-time highs of 25,445.70 and 83,184.34, respectively. This bullish trend follows a surge in foreign investment last week. Investors, however, are in a wait-and-watch mode ahead of the U.S. Federal Reserve's anticipated rate cut announcement on Wednesday. Ajay Bagga, a banking and market expert, noted the market's split on whether the Fed will implement a 25 or 50 basis points cut, highlighting that economic data supports a smaller cut, but many believe the Fed has kept rates too high for too long.

Bagga also mentioned a recent net outflow from Foreign Institutional Investors (FIIs) after six days of strong inflows. He predicts Indian markets will continue to track global cues, with potential U.S. rate cuts likely to weaken the dollar and increase investment in emerging markets, benefiting Indian markets in the long run.

The broader market indices on the NSE opened in green with marginal gains, while the Nifty IT sector opened slightly negative. Bajaj Housing Finance shares hit the upper circuit, trading at Rs 178 during report filing. Globally, markets showed mixed trends on Tuesday. The Asia Dow declined by 0.34 percent, Japan's Nikkei 225 fell by 0.60 percent, while South Korea's KOSPI rose by 0.95 percent, and China's Shanghai Composite gained 0.14 percent. In the U.S., the S&P 500 increased by 0.13 percent to 5,633.09, the Dow Jones rose by 0.55 percent to 41,622.08, and the Nasdaq Composite dropped by 0.52 percent to 17,592.13, reflecting mixed investor sentiment amid speculation on the Fed's pending decision.

(With inputs from agencies.)