India's benchmark stock indices were trading marginally higher through midday on Wednesday due to a lack of direction ahead of the crucial US CPI data and Fed minutes that would dictate direction for the market. Indices were supported by gains in Reliance Industries Ltd., Kotak Mahindra Bank Ltd., and Bharti Airtel Ltd.
As of 12:08 p.m., the NSE Nifty 50 was trading 58.00 points, or 0.26%, higher at 22,700.75, and the S&P BSE Sensex gained 219.95 points, or 0.29%, to trade at 74,903.65.
The Nifty scaled an intraday high of 22,727, and the Sensex touched a high of 74,983 so far on Wednesday.
"The lack of direction in markets can be attributed to the crucial US CPI data and the Federal Open Market Committee's March meeting minutes due later today," said Avdhut Bagkar, technical and derivatives analyst at StoxBox.
"These data will set the tone for monetary policy going forward, with the Federal Reserve reiterating its stance that any future rate cuts will be data-dependent. Any easing in inflation is being taken positively by markets,".
"In a truncated trading week with a holiday tomorrow on account of Eid celebrations, we do not rule out another bout of profit taking at higher levels as investors prefer to stay nimble ahead of an economic data-heavy week. On the domestic front, all eyes are glued to the inflation print and the start of corporate earnings season on Friday for further direction to the market sentiment," Bagkar said.
The Nifty Bank index rose to a fresh high of 48,966.95 during the day, tracking gains in Kotak Mahindra Bank Ltd., Axis Bank Ltd.
Reliance Industries Ltd., Bharti Airtel Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd., and Coal India Ltd. were adding to the Nifty.
HDFC Bank Ltd., Maruti Suzuki India Ltd., Larsen & Toubro Ltd., Cipla Ltd., and Sun Pharmaceutical Industries Ltd. were weighing on the index.
On NSE, 10 sectors advanced, and two declined out of 12. The NSE Nifty Oil & Gas sector rose the most, and the NSE Nifty Pharma sector declined the most.
Broader markets outperformed benchmark indices. The S&P BSE Midcap was 0.62% up, and the S&P BSE Smallcap was trading 0.19% higher.
On BSE, 17 sectors advanced, and three declined. The S&P BSE Oil & Gas sector rose the most among its peers, while the S&P BSE Telecommunication fell the most among sectoral indices.
Market breadth was skewed in favour of sellers. Around 1,921 stocks declined, 1,704 stocks rose, and 142 remained unchanged on BSE.
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