(Reuters) – Indian equities may extend their recent rebound to the third straight session on Wednesday, but caution ahead of the U.S. Federal Reserve’s policy decision may keep a lid on gains.
The GIFT Nifty futures were trading at 22,953.00 as of 08:14 a.m. IST, indicating that the blue-chip Nifty 50 will likely open above Tuesday’s close of 22,834.30.
The 50-stock index logged its best day in six weeks on Tuesday, closing near one-month highs, on bargain hunting in beaten-down stocks. The index is still 13% below the record high hit in late September 2024.
Foreign portfolio investors (FPIs) turned buyers on Tuesday for the first time in March and only the fourth time in 2025, per provisional data.
Asian markets were mixed in early trade on the day, with the MSCI Asia ex Japan trading flat, ahead of the Fed’s decision due after India market hours. [MKTS/GLOB]
While the Fed is expected to keep interest rates steady, investors will closely watch its commentary on the U.S. economy and future rate actions to assess the impact of changes in U.S. trade policies.
U.S. President Donald Trump’s tariffs are expected to fan inflation and slow down the world’s largest economy.
India’s metal stocks will be in focus after the government recommended a temporary tax of 12% on some steel products for 200 days to protect the domestic industry from cheaper imports.
CLSA said that the duty and domestic prices in line with import parity will add to the multiple positive catalysts for the sector, such as improving demand outlook due to China stimulus hopes and a rise in capex in Europe.
STOCKS TO WATCH
** CLSA says it prefers Hindalco and Vedanta among metal stocks and raises target prices of JSW Steel, Tata Steel on improved outlook and safeguard duties
** Life Insurance Corporation of India says it’s still in advanced talks to acquire a stake in a health insurance company and hopes to decide on the stake buy by March-end
** Bajaj Auto approves reappointment of Rajiv Bajaj as managing director and chief executive officer for five years starting from April 1
** Zydus Lifescieces gets final approval from U.S. drug regulator for a drug used to treat patients with prostate cancer
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy)
