Sensex extends gains while street eyes Fed commentary

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Stock Market makes gains ahead of Fed decisions

By S Jha

New Delhi, July 31: Sensex and Nifty extended gains on Wednesday amid choppy trades. The US Federal Reserve will unveil the monetary policy stance later tonight.

Nifty faced congestion above 24950 level all throughout Wednesday. Bank Nifty exhibited nervousness in a rangebound movement.

The US Federal Reserve Chairman Jerome Powell’s press conference is also being awaited with bated breath. The street is expected Powell to give definitive hints in rate cuts. Consensus view on expectations in the street is for a rate cut in September.

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With big event set for release later tonight India time, the Dalal Street played safe on Wednesday. Traders took bets on defensive pharma stocks.

Dishman Carbogen gained the most from the pharma pact, rising 20 per cent to lock in the upper circuit. Granules and Ajanta Pharma also gained more than six per cent each.

Jubilant Pharmova too was higher by over six per cent. Suven Pharma, the favourite of traders, was also hitgher by six per cent. Unichem Laboratory too was in firm demand on the street.

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Among the sectors, metals were firm in the trade on Wednesday. JSW Steel led the gains in the metal space with over three per cent rise. Hindalco gave a close company.

The falling crude oil price brought better fortunes for Asian Paints. It is notable that the Asian Paints reacts positively when there is a fall in the crude oil prices.

The life insurance sector is trending for the past few days. HDFC Life is leading the sector. SBI life also extended gains on Wednesday.

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Union Minister for Surface Transport Nitin Gadkari in a latter to Finance Minister Nirmala Sitharaman has called for exempting life insurance and Mediclaim policies from the coverage of the GST. HDFC Life is now trading above ₹700 level while SBI Life is also trending positively.

The brokerages are betting on Nifty soon scaling the level of 25000. They are advising clients that Nifty may rise to the extent of 25200 in the short term.

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While Nifty is trading at almost highest level, Bank Nifty has fallen off the curve. Bank Nifty is now trading at heavy discounts to Nifty and Sensex.

The Bank Nifty is seen to be in a bearish phase for lack of leadership as per market participants. The ICICI Bank and the HDFC Bank have helped the Bank Nifty to stop cracking further.

Disclaimer: This article makes no recommendation for any kind of trade or investment decision in the stock market.

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