Nifty Ends Lower for Second Straight Day; Reliance Infra Hits Upper Circuit, Fed Decision Eyed

The Nifty 50 index closed 41.35 points or 0.17 per cent lower at 24,812.05, while the Sensex slipped 138.64 points or 0.17 per cent to settle at 81,444.66.

Market Update at 4:15 PM: Indian stock markets ended lower for the second consecutive session on Wednesday, June 18, as investor sentiment remained cautious ahead of the U.S. Federal Reserve's interest rate decision. Rising tensions in the Middle East further weighed on sentiment. The Nifty 50 index closed 41.35 points or 0.17 per cent lower at 24,812.05, while the Sensex slipped 138.64 points or 0.17 per cent to settle at 81,444.66. Selling pressure from heavyweight stocks like ICICI Bank and TCS played a major role in dragging the benchmarks down.

During the session, the Nifty 50 moved within a 197-point range, which was narrower than its recent 10-day average. This limited movement reflected traders’ hesitation ahead of the U.S. Fed’s policy outcome due later in the day. Although the Fed is expected to maintain current interest rates, investors will be closely watching for cues on the future policy path through the Fed’s updated economic outlook.

Among sectoral indices, only the Auto and Bank sectors managed to close in positive territory. All other major sector indices ended in the red. In the broader markets, both the Nifty Midcap 100 and Smallcap 100 indices also declined, falling 0.46 per cent and 0.23 per cent, respectively, indicating weakness across market segments.

Several stocks made news during the session. IndusInd Bank surged 5.1 per cent after the lender announced a significant clean-up of its loan book, which improved investor confidence. Reliance Infrastructure hit the 5 per cent upper circuit after its subsidiary announced a partnership with Dassault Aviation to manufacture Falcon 2000 business jets in India. On the other hand, Hindustan Zinc declined by 6.9 per cent following parent company Vedanta's sale of a 1.6 per cent stake through a block deal.

The Nifty Auto index outperformed other sectors with a gain of 0.37 per cent, led by Maruti Suzuki, which rose 1.21 per cent. In contrast, the Nifty Media index was the top laggard, ending 1.27 per cent lower. Among the biggest contributors to Nifty’s gains were M&M (+9.06 points), IndusInd Bank (+7.52 points), and Bharti Airtel (+7.49 points). However, losses in ICICI Bank (-20.59 points), TCS (-18.49 points), and Hindustan Unilever (-7.81 points) offset those gains.

Market breadth was negative on the NSE. Out of 2,955 stocks traded, 1,026 advanced, 1,851 declined, and 78 remained unchanged. A total of 50 stocks touched their 52-week highs, while 24 hit new 52-week lows. Circuit activity was also notable, with 75 stocks locked in upper circuits and 83 in lower circuits.

Market Update at 12:30 PM: Indian equities managed to recover from early declines on Wednesday, supported by strong domestic liquidity and bargain buying, despite weak cues from global markets due to rising geopolitical tensions and economic concerns.

As of 12:26 p.m. IST, the Nifty 50 was down 0.25 per cent at 24,792, while the Sensex fell 0.2 per cent to reach 81,424.20. Earlier in the session, both indices had slipped nearly 0.3 per cent.

The rally was broad-based, with eight out of thirteen sectoral indices posting gains. The auto sector led with a 1.1 per cent rise, while Small-Cap and Mid-Cap indices remained largely unchanged..

Meanwhile, crude oil prices continued to rise as the Israel-Iran conflict entered its sixth day, stoking fears of a wider regional crisis. Being a major oil importer, India remains exposed to higher energy costs, which could impact inflation and the trade deficit.

Investor sentiment also remained cautious ahead of the U.S. Federal Reserve’s policy announcement later in the day. While no rate change is expected, markets will closely watch the Fed’s updated economic outlook for future guidance.

Among individual stocks, IndusInd Bank jumped 5.1 per cent, citing a substantial clean-up of the bank’s balance sheet. On the other hand, BSE Ltd declined 1.5 per cent amid concerns that the recent shift in equity derivatives expiry day could hurt its market share.

Market Update at 10:30 AM: Indian equity benchmark indices started Wednesday's session on a negative note, impacted by rising tensions in the Middle East that pushed oil prices higher and dampened investor confidence.

As of 9:15 a.m. IST, the Nifty 50 slipped 0.26 per cent to 24,788.35, while the BSE Sensex was down 0.33 per cent at 81,314.62.

At market open, 11 out of 13 key sectoral indices were trading in the red. Broader indices also mirrored the weakness, with the small-cap and mid-cap indexes each edging lower by about 0.1 per cent.

U.S. markets closed lower overnight, and crude oil prices climbed as the Israel-Iran conflict entered its sixth day, increasing fears of a broader regional escalation in the oil-sensitive Middle East.

Higher crude prices remain a concern for countries like India, where oil imports form a significant part of the trade basket.

Pre-Market Update at 8:00 AM: Indian equity benchmarks, Sensex and Nifty 50, are expected to start Wednesday's session on a muted note as mixed signals from global markets and ongoing geopolitical tensions, especially the Israel-Iran conflict, weigh on investor sentiment.

Asian markets traded in the red, while U.S. indices edged lower overnight as investors awaited the Federal Reserve's interest rate decision, scheduled for later today in the U.S.

Back home, the domestic markets ended lower on Tuesday amid profit-booking in heavyweight stocks such as HDFC Bank, Reliance Industries, and Bajaj Finance. Weak global cues further dampened sentiment. The Sensex declined by 213 points (0.26 per cent) to close at 81,583.30, while the Nifty 50 ended the day 93 points lower (0.37 per cent) at 24,853.40.

Equity markets across Asia were mostly negative, with rising tensions in the Middle East impacting sentiment. Japan’s Nikkei 225 slipped 0.15 per cent, and the Topix index declined 0.18 per cent. In South Korea, the Kospi dropped 0.44 per cent, while the Kosdaq was down 0.15 per cent. Hong Kong’s Hang Seng futures indicated a weaker start around 23,813, lower than the last close of 23,980.30.

Gift Nifty was hovering near 24,834, roughly 29 points lower than Tuesday’s Nifty futures close, suggesting a subdued open for Indian indices.

On Tuesday, all three key U.S. indices ended in the red. The Dow Jones shed 299.29 points (0.70 per cent) to finish at 42,215.80. The S&P 500 declined 0.84 per cent to 5,982.72, while the Nasdaq Composite fell 0.91 per cent, closing at 19,521.09. Traders remained cautious ahead of the Federal Reserve’s policy outcome.

On Tuesday, June 17, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth Rs 1,616.19 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling Rs 7,796.57 crore during the same session.

The conflict between Israel and Iran intensified overnight, prompting the U.S. to boost its military presence in the region. President Donald Trump held a high-level meeting with his national security advisors to assess the situation, although no immediate details were shared. The escalation has triggered concerns over broader instability in the Middle East.

Oil prices continued their upward movement, building on Tuesday’s 4 per cent rally. As of early Wednesday, Brent crude rose 19 cents (0.25 per cent) to  USD76.64 per barrel, and WTI crude was up 23 cents (0.31 per cent) to  USD75.07 per barrel, as markets priced in possible supply disruptions due to geopolitical risks.

Gold prices inched higher as investors sought safe-haven assets amid the Iran-Israel conflict. Spot gold was up 0.2 per cent at  USD3,390.59 an ounce, although U.S. gold futures ended 0.3 per cent lower at  USD3,406.90. Meanwhile, silver surged to its highest level in over a decade.

The U.S. dollar reversed early losses, strengthening against the yen, buoyed by data indicating cautious consumer behavior in the U.S. ahead of the Fed decision.

For today, IREDA, CDSL, ABFRL, Chambal Fertilisers, Hudco, RBL Bank, Titagarh and Birlasoft continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.