FX.co ★ Sensex, Nifty End Modestly Higher On Fed Pivot Bets

Shares in India closed modestly higher when trading recommenced following the May Day Holiday. This can be attributed to the less aggressive than anticipated stance from the U.S Federal Reserve. The reserve signaled on Wednesday that it would lean towards reducing borrowing costs only after gaining sufficient confidence that price increases are becoming more moderate.

The easing of geopolitical tensions which led to a decrease in oil prices also provided some support. Crude oil prices increased in European trades following a 3 percent plunge that had brought them to a seven-week low in the previous session. The fall in oil prices was a result of the Energy Information Administration's announcement regarding an unexpected surge in U.S. crude reserves.

The S&P BSE Sensex, a benchmark index, fluctuated slightly before the session ended with an increase of 128.33 points (0.17 percent) at 74,611.11. The broader NSE Nifty index also rose by 43.35 points (0.19 percent) ending at 22,648.20. However, there was some caution limiting the gains due to anticipation of Apple's forthcoming earnings.

BPCL, a state-run oil marketing company, recorded the highest gain, increasing by 4.6 percent following a sizeable 5 percent decrease in crude oil prices over the two preceding sessions. Bajaj Auto, Tata Motors, Asian Paints, and Power Grid Corp also saw gains between 2-4 percent. Conversely, HDFC Life, Axis Bank, Bharti Airtel, Tata Consumer Products, and Kotak Mahindra Bank experienced declines between 1-3 percent.