Stock Market India: Nifty, Sensex end in the greenIndian equity benchmarks rose modestly on Wednesday, extending gains for the second straight session after domestic and US inflation eased sharply, even as the global stocks’ rally fizzled on caution ahead of the Federal Reserve’s meeting outcome later in the day.The BSE Sensex index rose 144.61 points, or 0.23 per cent, to close at 62,677.91, and the broader NSE Nifty climbed 34.90 points, or 0.19 per cent, to end at 18,642.90.”Markets will definitely cheer a moderation in rate hike cycle as well as the bottoming out of inflation,” Avinash Gorakshakar, Head of Research at Profitmart Securities, told Reuters.With increases of more than 1 per cent, the Nifty IT and Nifty Metal were among the top sectors gainers, after the IT index ended a losing streak of seven days in the previous session.”When you get corrections in IT stocks, you buy”, Neeraj Dewan, Director at Quantum Securities, told Reuters.The sector would not lose sheen for long-term investors irrespective of downbeat commentary from IT companies, Mr Dewan said referring to HCL Technologies Ltd warnings of furloughs and spending cuts by US clients.With falls in consumer goods giants Nestle India and Colgate (COLG.NS), which lost 1.6 per cent and 4.3 per cent, respectively, the Nifty FMCG (Fast Moving Consumer Goods) was the only sector to lose ground.Reuters Graphic: All Sectoral Indexes Barring FMCG Log GainsAsian stocks rallied on Wednesday, and the dollar nursed losses on optimism that inflation has peaked and interest rate increases will slow and eventually stop in 2023 after data showed US consumer prices eased.Shares in Hong Kong, Japan, and Australia continued to rise, helping the MSCI Asia Pacific index close 19 per cent above its October low and near a three-month high.However, apprehension about the future steps of policymakers kept things in check ahead of the Federal Reserve’s meeting outcome later in the day and central banks in Britain and Europe scheduled to meet on Thursday.Despite China’s reopening from rigorous COVID controls, investors are also paying close attention to the global economy.”If CPI comes off and China fully reopens, that’s still not really enough to go gung-ho in Asia markets because we’re facing a scenario where the more developed markets, the major markets, are facing a recessionary environment in 2023,” Sat Duhra, Portfolio Manager on Janus Henderson Investors’ Asia ex Japan Equity Team, told Reuters.”There will be some upside from China reopening, but I think it’s not enough to offset the negatives.”European equities opened lower, and US index futures were muted as investors mulled over whether inflation had fallen sufficiently to persuade the Fed to ease its aggressive monetary tightening.”The question is, with inflation still at generational highs, will the Fed walk through that door?” noted Stephen Innes, Managing Partner at SPI Asset Management, according to Bloomberg.”After an initially high-spirited response, the relatively muted reaction for stocks is likely attributable to pre-risk event positioning, prevailing bearish growth sentiment, technical factors and the devil in the detail.”Nervousness over Fed policy echoed in the oil market, with the rise in West Texas Intermediate futures halted after a two-day advance. Additionally, traders weighed the demand prognosis despite a swift easing of Covid restrictions in China with the impact of new cases on the nation’s economic activity.Featured Video Of The DayInflation Below 7%, 1st Time In 3 Months
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