Sensex, Nifty gains ahead of 2-day Fed policy meet; smallcaps outperform

Benchmark indices gained in the morning trade after consumer inflation dipped to a five-year low of 2.12% in May, raising hopes that this will give room to the Reserve Bank of India to cut rates. The gains were however capped as April IIP remained sluggish at 3.1% due to poor show by manufacturing, mining sectors.The sentiment also remained cautious ahead of the US Federal Reserve’s two-day policy meeting that kicks off later today where they are widely expected to hike the policy rate this time. Financial Astrology Tips

 
At 10:45 am, the S&P BSE Sensex was trading at 31,168, up 73 points, while the broader Nifty50 was ruling at 9,635, up 18 points. The broader market outperformed benchmark indices with S&P BSE Midcap up 0.4% while the S&P BSE Smallcap up 0.7%. "A break above 9,640 could set up moves towards 9,627-9,770 or even above. Alternatively, inability to float above 9,640 could keep the moves aiming 9,591 or below, but until 9,500 is cleared, falls will not gain momentum," said Geojit Financial Services in a note. Astrology and Numerology Trading Tips