The BSE Sensex rose 171 points, or 0.2%, to 81,741 in Wednesday morning trade, recovering losses from the previous session. Gains were mainly driven by auto stocks, manufacturing, and banking sectors. Small-cap and mid-cap indices also supported the rally, rising 0.4% and 0.3%, respectively. Traders largely shrugged off escalating tensions in the Middle East as they awaited the Federal Reserve’s monetary policy announcement later today, with markets widely expecting the central bank to hold interest rates steady.
Positive domestic economic data further lifted sentiment, as easing inflation raised hopes of further interest rate cuts. However, gains were capped by Wall Street’s decline on Tuesday amid worries that the US could become directly involved in the Israel-Iran conflict. The Nifty 50 index rose 0.3%, climbing above 24,900, led by notable gains from IndusInd Bank (5.2%), Maruti Suzuki (2.0%), Mahindra & Mahindra (1.8%), Bajaj Finance (0.9%), and Titan (0.7%).
