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Indian equity benchmarks regained momentum, after fluctuating between gains and losses in the opening trade. The NSE Nifty 50 rose 0.32% to 24,066.65, gaining 77.50 points. The BSE Sensex advanced 0.41% to 77,121.33, up 312.85 points.
Meanwhile, Oil prices, recovered modestly after falling to their lowest levels in about three months, as investors assessed expectations that a U.S.-Iran agreement and the reopening of the Strait of Hormuz could release additional supply into global markets. Brent crude for August delivery rose 0.7% to $79.49 a barrel as of 8:27 a.m. in Singapore, while West Texas Intermediate crude for July delivery gained 0.7% to $76.61 a barrel.
Elsewhere, Asian shares weakened on Wednesday as investors took a cautious approach before the U.S. Federal Reserve’s policy announcement, with inflation concerns and developments in the Middle East shaping market sentiment. South Korea’s Kospi recorded the steepest decline in the region, slipping 0.93%. Japan’s Nikkei 225 lost 0.06%, while Australia’s ASX 200 edged 0.05% lower.
The Fed is widely expected to keep interest rates unchanged later in the day. The meeting marks the first policy decision under Chairman Kevin Warsh and comes at a time when officials are grappling with signs that price pressures could prove more persistent.
A number of Federal Open Market Committee members have flagged the risk that inflation may not ease as quickly as anticipated. Higher energy costs following the U.S. military action involving Iran have reinforced those concerns, with some policymakers setting out circumstances that could support further increases in borrowing costs.
There is also growing discussion within the central bank over whether to drop wording in its policy statement that implies the next adjustment in rates would likely be a reduction, highlighting uncertainty over the path ahead.
The decision arrives as President Donald Trump continues to advocate lower interest rates, placing Warsh under early pressure as he seeks to balance inflation risks with calls to support economic activity.