Markets open higher on Fed meet day; tech stocks lead rally 

Benchmark indices opened higher on Wednesday as global cues remained positive ahead of the US Federal Reserve’s interest rate decision, with technology stocks leading the gains following overnight rallies in US markets.

The Sensex opened higher at 76,138.24 compared to its previous close of 75,901.41 and is currently trading at 76,169.38, up by 267.97 points or 0.35 per cent. Similarly, the Nifty opened at 23,026.75 against its previous close of 22,957.25 and is now at 23,040.10, gaining 82.85 points or 0.36 per cent. Technology and auto stocks outperformed, while FMCG counters witnessed selling pressure.

“The market’s focus will be on three main factors: the US Fed’s interest rate decision, the Union Budget set to be announced on Saturday, and corporate earnings reports,” said Vikas Jain, Head of Research at Reliance Securities.

Hardik Matalia, Derivatives analyst at Choice Broking, noted, “After a positive opening, Nifty can find support at 22,800, followed by 22,650 and 22,500. On the higher side, 23,050 can be an immediate resistance, followed by 23,150 and 23,300.”

Among individual stocks, Bajaj Auto emerged as the top gainer on NSE, surging 3.97 per cent after reporting strong Q3 results. Other major gainers included BEL (+2.30 per cent), Wipro (+1.94 per cent), Shriram Finance (+1.85 per cent), and Infosys (+1.80 per cent). On the flip side, FMCG stocks led the losses with Tata Consumer dropping 1.36 per cent, followed by Britannia (-0.81 per cent), Hindustan Unilever (-0.66 per cent), Nestlé India (-0.49 per cent), and ITC (-0.46 per cent).

VLA Ambala, Co-Founder of Stock Market Today, highlighted that “In October 2024, FIIs sold shares with a net worth of ₹114,445.89 crores, however, this time, FII outflows are gaining pace, already reaching ₹74,095.60 crores, while DIIs stepped in with net buying worth ₹73,586.65 crores, due to the weakening of INR against USD.”

In commodities, Rahul Kalantri, VP Commodities at Mehta Equities, stated, “Gold has support at ₹79,870-79,680, while resistance is at ₹80,440-80,620. Crude oil has support at $73.00-72.40 and resistance is at $74.10-74.70 in today’s session.”

Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹4,920.69 crore on January 28, while domestic institutional investors bought shares worth ₹6,814.33 crore, as per exchange data.

“The Fed’s key interest-rate committee is expected to keep rates unchanged at 4.25 per cent to 4.5 per cent, with investors paying close attention to Fed Chair Jerome Powell’s comments following the meeting,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Technical analysts suggest a cautious approach. “The Nifty’s range for the day is 22,786 – 23,154 with a daily close above 23,050 needed for a larger rebound in the near-term,” said Akshay Chinchalkar, Head of Research at Axis Securities.

The Reserve Bank of India’s announcement to purchase Government Securities worth ₹60,000 crore through open market operations is expected to enhance liquidity in the equity segment, potentially supporting market sentiment in coming sessions.