Synopsis
On January 30, Mumbai's stock market opened with little change as the US Federal Reserve unanimously decided to pause its rate cut cycle, which has seen a total reduction of 100 bps since last September, impacting local indices.Key Takeaways
- The domestic indices opened flat on news of US Fed's rate pause.
- Sensex rose by 49 points; Nifty increased by 43 points.
- FII selling continues for the 19th session.
- Market experts are monitoring fertilizer and railway stocks ahead of the Union Budget.
- Tech stocks are influenced by developments in Chinese AI.
Mumbai, Jan 30 (NationPress) The local benchmark indices started off flat on Thursday as the US Federal Reserve convened and unanimously decided to suspend the rate reduction cycle that commenced last September, resulting in a cumulative cut of 100 bps thus far.
The Sensex saw a minor increase of 49 points or 0.065 percent, reaching 76,582.44, while the Nifty rose by 43 points or 0.18 percent to 23,197.20. Out of the total shares, 1,539 advanced, 701 declined, and 128 remained unchanged.
The FOMC in the US maintained rates at 4.25-4.5 percent. The Fed has committed to a data-driven approach, reassuring the markets that it is not on a predetermined path.
“Moreover, it continues to reduce its holdings of treasury securities, agency-backed debt, and mortgage-backed securities. Overall, the policy meeting was largely uneventful, as expected,” noted Ankita Pathak, Chief Macro and Global Strategist at Ionic Wealth by Angle One.
The US markets are closely monitoring the advancements in Chinese AI, which is becoming a significant influence on major tech companies.
Dhawal Ghanshyam Dhanani, Fund Manager at SAMCO Mutual Fund, stated that with inflation remaining high and the labor market robust, the “Fed Pivot” has effectively halted.
“This suggests that the FOMC aims to take time to evaluate and understand the ramifications of the current administration’s policies regarding tariffs, tax reductions, deregulation, and more,” added Dhanani.
Meanwhile, Bajaj Finance, Bharti Airtel, Bajaj Finserve, Maruti Suzuki India, and Hindustan Unilever contributed positively to the Nifty 50 index, while Tata Motors, Infosys, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank had a negative impact.
On the NSE, nine sectors saw gains while three faced losses out of a total of twelve. The NSE Nifty Realty sector increased the most, whereas the NSE Nifty Auto sector declined the most.
On January 29, foreign institutional investors (FIIs) continued their trend of net selling for the 19th consecutive session, offloading equities worth Rs 2,586 crore, while domestic institutional investors acquired equities worth Rs 1,792.71 crore on the same day.
“In anticipation of the Union Budget, there was a surge in certain fertilizer and railway stocks, and today’s movements will determine if this is merely a temporary trend or the beginning of a new pattern,” remarked market analysts.
