Markets end marginally higher ahead of US Fed rate verdict

Market Today

Indian equity markets ended slightly higher on July 30, ahead of the US Federal Reserve’s key interest rate decision scheduled for Wednesday.

At the close of trade, the Sensex advanced 0.2 percent or 143.91 points to settle at 81,481.86, while the Nifty gained 33.95 points or 0.1 percent to finish at 24,855.05.

U.S. markets remained largely steady, with S&P 500 futures showing minimal movement ahead of the Fed's rate announcement. The decision has sparked tensions between the White House and Federal Reserve Chair Jerome Powell.

In Europe, the Stoxx 600 index remained volatile.

The Federal Reserve is widely expected to maintain interest rates for a fifth straight meeting, despite increasing pressure from President Donald Trump to ease borrowing costs. Investors are closely watching for any indication that the Fed may adopt a more dovish stance in its September meeting.

On the domestic front, sentiment was also cautious after President Trump stated on Tuesday that India could face a tariff of 20 to 25 percent—slightly below the 26 percent reciprocal tariff announced in April. However, he noted that the final decision is still pending as both nations continue trade negotiations ahead of the August 1 deadline.

In stock-specific action, Larsen & Toubro was among the top performers, rising 5 percent after its first-quarter earnings exceeded expectations. In contrast, Tata Motors declined nearly 3 percent following reports that the company plans to acquire Italian truck manufacturer Iveco in a deal valued at around $4.5 billion.

"Markets traded in a tight range and ended marginally higher amid mixed cues. After a flat start, the Nifty oscillated within a narrow band throughout the session and finally settled at 24,855.05. Sentiment remained subdued due to lingering uncertainty over the trade deal, following the latest statement from the US President about potential tariffs on India, amid delays in finalizing the agreement ahead of the August 1 deadline. Additionally, caution prevailed ahead of the outcome of the FOMC meeting — while no rate change is expected, the Fed’s commentary will be closely watched," said Ajit Mishra – SVP, Research, Religare Broking.

"On the sectoral front, a mixed trend kept traders active. IT and FMCG ended marginally in the green, while realty and auto declined. The broader market also saw mixed action — the midcap index closed flat, whereas the smallcap index slipped nearly half a percent."

"Participants will react to the US Fed Chair’s commentary in early Thursday trades. On the index front, the 25,000–25,100 zone is expected to act as a resistance and may attract fresh selling if the market attempts a rebound, while support is seen around the 24,450–24,550 zone. Given the likelihood of volatile swings, we recommend maintaining a cautious stance and prefer a hedged approach," he added.