Sensex Rises 271 Points As Nifty Holds 24,000 Before Fed

Mumbai : Indian equity benchmarks started Wednesday's session on a buoyant note, with the BSE Sensex advancing over 271 points and the NSE Nifty 50 comfortably holding above the psychologically crucial 24,000 mark.

The upbeat opening sentiment was heavily supported by a steady collapse in international oil prices, alongside an easing geopolitical landscape in West Asia.At the opening bell, the 30-share BSE Sensex jumped to 77,080.48, gaining roughly 0.35%, while the broader Nifty 50 index added 55 points to open at 24,044.25. Market volatility, tracked by the India VIX, cooled further to multi-week lows of 13.37, highlighting robust risk appetite among local traders.  

The primary domestic trigger remains the persistent decline in energy benchmarks. Brent crude futures slipped well under the USD 80 per barrel threshold, trading near USD 79.49 following reports of an interim U.S.-Iran diplomatic truce that promises to fully reopen traffic through the crucial Strait of Hormuz.

Analysts note that cheaper oil significantly reduces India's balance of payments deficit and is actively cooling retail inflationary projections, prompting foreign institutional investors to taper their recent aggressive selling streaks.However, further gains across individual banking and technology scrips remained measured as market participants brace for the conclusion of the highly anticipated U.S. Federal Reserve policy meeting later tonight.

While the CME FedWatch tool shows a near 97% probability that interest rates will hold flat at the current 3.50% to 3.75% band, the real focus centers on the fresh macroeconomic projections. Investors globally are eagerly waiting for the updated "dot plot" interest rate trajectory, alongside the inaugural post-meeting press conference by newly appointed Federal Reserve Chair Kevin Warsh to gauge whether U.S. interest rates will remain higher for longer through the rest of the year.