Markets Brace for Fed Decision Amid IPO Buzz and Trade Talks

Domestic markets opened cautiously on Wednesday, ahead of the U.S. Federal Reserve's anticipated rate cut announcement. While Nifty showed a slight uptick, Sensex recorded a minor dip. Market experts indicate range-bound movement pending global trade developments and IPOS, amid ongoing liquidity concerns driven by market trends.

On Wednesday, domestic markets began the trading day with a subdued tone as investors adopted a cautious approach in anticipation of the U.S. Federal Reserve's key interest rate cut announcement later tonight. The Nifty opened marginally higher, whereas the Sensex faced a slight decline, reflecting mixed market activity.

The NIFTY 50 index saw a modest increase, opening at 25,864.05 with a gain of 24.40 points or 0.09 percent. In contrast, the BSE Sensex started off at 84,607.49, marking a drop of 58.79 points or -0.07 percent. Analysts pointed out that markets linger in the oversold territory and are awaiting clarity from global cues and tariff developments.

Ajay Bagga, a Banking and Market Expert, shared with ANI that although the Indian markets exhibit weakness, they remain range-bound with potential for recovery based on technical indications of oversold conditions. He emphasized that continued liquidity outflow presents a major challenge. A sustainable market rally relies on positive outcomes from U.S. trade talks and an optimistic Union Budget.

In IPO news, Meesho's market debut is a significant event, with shares priced between Rs 105 and Rs 111. The IPO's size is Rs 5421 crore, including a fresh issue and an offer for sale. Bagga mentioned that global markets could experience volatility post-Fed announcement, as investors anticipate Powell's comments and market projections.

Despite recent positive trade moves involving Nvidia's chip exports to China, the U.S. markets, including Nvidia, struggled. Ponmudi R, CEO of Enrich Money, noted that Nifty 50 remains within a descending channel but retains support above the 50-day EMA, indicating potential price stability. Analysts expect cautious market trends to continue this week amid critical global economic events.