Stock markets in India started off November on a positive note, following three consecutive days of gains. This upward trend was observed across various sectors and was in line with the performance of other Asian equities. Investors are closely watching the upcoming US Federal Reserve policy meeting.
As of 0352 GMT, the NSE Nifty 50 index climbed 0.49% to reach 18,100.40, while the S&P BSE Sensex increased by 0.48% to reach 61,040.24.
In the previous month, benchmark indexes saw an increase of over 5% each due to strong corporate earnings reports and expectations of major central banks adopting a less hawkish stance. Traders are eager to learn the outcome of the Fed policy meeting as well as the central bank’s perspective on future rate hikes.
Investors widely anticipate that the Fed will announce a 75 basis point increase in interest rates at the conclusion of its two-day policy meeting on Wednesday.
The Reserve Bank of India’s Monetary Policy Committee is also scheduled to hold a meeting on November 3. During the meeting, the committee will likely discuss its response to the government’s failure to meet the inflation target for three consecutive quarters.
In Asia, share prices rose in early trading on Tuesday, despite the mild losses in Wall Street the previous day. Market participants’ attention has shifted to the Fed’s policy meeting, seeking indications of future market direction.
On the domestic front, the automobile, IT, and pharmaceutical sectors saw significant gains in the Nifty’s indexes, with increases ranging from 0.6% to 0.9%.
Notably, Adani Ports and Special Economic Zone, Sun Pharmaceutical Industries Ltd, and UPL Ltd witnessed gains ranging from 0.4% to 0.9% in anticipation of their quarterly results later in the day.