Sensex, Nifty open flat near all-time highs ahead of US Fed’s rate decision

Benchmark stock market indices opened the trading session on a flat note as investors remain cautious ahead of the US Federal Reserve’s expected interest rate cut a day later.
The S&P BSE Sensex was down 23.7 points at 82,965.08, while the NSE Nifty50 fell 3.25% to 25,380.50.
Most of the other broader market indices also opened the trading session on a negative note.
The top five gainers on the Nifty50 were Bajaj Finance, Divi’s Lab, Shriram Finance, Kotak Mahindra Bank and Britannia.
On the other hand, the top losers were Tata Motors, BPCL, Adani Ports, Grasim and Coal India.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Globally equity markets were flat yesterday signalling a wait and watch mood in anticipation of the Fed rate action tomorrow.”
“The Fed rate action will depend on the incoming data and evolving outlook and, therefore, what the Fed chief Powell says will be crucial. Rate cuts are positive for markets and higher rate cuts are more positive,” he added.
He warned that if the incoming data signals a sharply slowing economy and the Fed cuts by 50 bps, the market is unlikely to treat it as positive. “It is possible that the market may take it as a signal of the US economy tipping into recession and, therefore, the response need not be positive.”
Vijayakumar also noted that banking stocks have been on a strong run recently, adding that there are “signs of accumulations in these attractively valued segments”.