Sensex, Nifty end flat after volatile session ahead of US Fed rate decision, CPI data

From the Sensex pack, , , , , and closed in the red, while L&T, , , , and UltraTech Cements ended in the green.

The U.S. interest rate-sensitive IT index closed flat ahead of the US consumer price index data, which is due tomorrow.

Meanwhile, the Nifty Oil & Gas index ended 1.3% higher, driven by a nearly 6% jump in after Jefferies raised its target price on the oil refiner's stock.

The broader, domestically-focused small caps and mid-caps rose by 0.55% and 0.8%, respectively, outperforming the benchmarks.

IndiGo's shares fell by 4.3% following reports that its promoters, the Bhatia family, likely sold a 2% stake in the budget airline.

The market breadth was skewed in favour of the bulls. About 2,467 stocks gained, 1,397 declined, and 105 remained unchanged on the BSE.

Experts View

"After a notable rebound, the domestic market has stabilized, awaiting further triggers. With the resolution of uncertainties in government formation, attention has shifted back to global and domestic indicators," said Vinod Nair, Head of Research, .

"Investors are now gearing up for this week's policy decisions from the U.S. Fed and the BoJ, as well as key inflation data from the U.S. and India, seeking insights into the trajectory of rate cuts," Nair said.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "Nifty is currently placed at the hurdle of 23,400-23,500 levels (1.382% Fibonacci projection), weekly hanging man and the opening downside gap of 4th June, which are weighing high for the market to sustain the new all-time highs. Hence, there is a possibility of dip in the market. Immediate support is at 23,050 levels."

Crude Oil

Oil prices were steady on Tuesday, as investors waited for key U.S. and China CPI data as well as the outcome of the Federal Reserve's policy meeting to glean a clearer picture of where inflation is heading and how that will affect fuel demand.

Brent crude futures fell 32 cents, or 0.3%, to $81.3 per barrel and U.S. West Texas Intermediate crude futures slipped 33 cents, or 0.4%, to $77.39.

Rupee at record Low

The Indian rupee weakened slightly on Tuesday to end at a record closing low, pressured by weakness in other Asian peers and despite intermittent dollar selling intervention by the central bank in late trade.

The rupee settled at 83.5650 against the U.S. dollar, 0.1% below its close of 83.5050 in the previous session.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)