Indian equity markets ended Tuesday’s session nearly unchanged, with both the NSE Nifty 50 and BSE Sensex closing flat at 25,279.85 and 82,555.44 points, respectively. Despite hovering close to their all-time highs, market participants were cautious ahead of key U.S. economic data that could influence a potential interest rate cut later this month.
Investor sentiment and market movement
The Nifty 50 recently enjoyed a 4.7% gain during a thirteen-session rally, the longest in its history, until Monday. However, with no significant news driving the market, the index is expected to remain around its record highs. Rahul Sharma, head of technical research at Equity99, noted that the market may continue to hover around these levels unless positive developments arise.
US data anticipation
Investors are closely watching upcoming U.S. economic indicators, including the ISM manufacturing survey and Friday's employment data. These reports are likely to influence the Federal Reserve's decision on the scale of a rate cut during its Sept. 17-18 meeting. Current futures suggest at least a 25-basis-point cut, with the possibility of up to 100 basis points across three meetings.
Sectoral performance
During the session, nine out of thirteen major sectoral indexes registered minor losses. The Nifty energy index dropped by 0.7%, while the financial services sector posted a 0.8% gain, reflecting the mixed sentiment across different sectors.
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