Sensex, Nifty to open higher ahead of Fed decision; Bajaj Auto, L&T, BPCL, Zydus Lifesciences shares eyed

The Indian stock markets are expected to open higher on Wednesday, tracking mixed cues from global peers. The positive trend at GIFT Nifty also signals gap-up opening for benchmark indices Sensex and Nifty50. At 8:20 AM, GIFT Nifty futures were trading at 22,938, up 44 points, or 0.19%. Investors will keep a close eye on the policy rate decisions by the central banks of the U.S. and Japan. Both the U.S. Federal Reserve and Bank of Japan are expected to keep their benchmark interest rate unchanged.

On Tuesday, Indian equities closed 1.5% higher, registering their biggest single-day rally in more than a month, driven by firm global cues and strong buying by foreign as well as domestic institutional investors. Extending gains for the second straight session, the BSE benchmark Sensex settled at 75,301.26, up 1,131 points or 1.53%. Similarly, the NSE Nifty50 closed 325 points, or 1.45%, higher at 22,834. The foreign institutional investors purchased Indian equities worth ₹694.57 crore on Tuesday, while the domestic institutional investors' net equity buying stood at ₹2,534.75 crore.

U.S. stocks snap two-session gaining streak

Ending two sessions gaining streak, U.S. stocks closed lower in overnight trade as investors turned jittery ahead of the Federal Reserve's policy meeting outcome. The U.S. central bank is widely expected to hold interest rates steady in their policy decision on Wednesday. The growing concerns about an economic slowdown due to President Donald Trump’s tariff plan also dented sentiments. Amid growing fear of recession due to uncertainty over Trump’s trade and tariff policies, investors seek clarity from the Fed policymakers, who will announce decision on late Wednesday.   

At the close, the Dow Jones Industrial Average and S&P 500 were down 0.6% and 1.1%, respectively, while tech-heavy Nasdaq Composite slipped 1.7% as Nvidia shares tumbled 3% after its annual GTC event failed to impress investors.

Asian stocks mixed ahead of BOJ

Equity markets in Asia-Pacific region were trading mixed today, tracking weak cues from Wall Street overnight, while caution prevailed ahead of the Bank of Japan policy announcement. The policymakers are expected to keep the benchmark interest rate unchanged. Japan’s Nikkei 225 rose for the fourth straight session by adding 0.7%, while South Korea’s KOSPI was the best performer in the region with a 0.8% gain. On the other hand, Hong Kong’s Hang Sang, Taiwan’s Weighted stock index, and China’s Shanghai Composite were down up to 0.4%. Indonesia’s Jakarta Composite opened marginally lower by 0.1% after heavy selling in the previous session.

Stocks to watch

Bajaj Auto: The auto major has re-appointed Rajivnayan Rahulkumar Bajaj as the Managing Director & Chief Executive Officer of the company for five years, effective April 1, 2025.

Larsen & Toubro: The board of the conglomerate is scheduled to meet on March 21 to consider fund raising via a debt issue.

Zen Technologies: The company has completed acquisition of a 45.33% stake in Bhairav Robotics.

Bharat Petroleum Corporation Ltd (BPCL): The PSU oil company has signed pacts with BluJ Aerospace, the Agency for New and Renewable Energy Research and Technology (ANERT), the Government of Kerala, and Cochin International Airport (CIAL) to develop the first hydrogen-fueled Vertical Take-off and Landing (VTOL) aircraft ecosystem globally.

Dr Reddy’s Laboratories: The pharma company said that the US Food and Drug Administration (FDA) has accepted a 351(k) Biologic License Application (BLA) submission for AVT03, developed by Alvotech. Dr. Reddy's entered into a licensing agreement with Nasdaq-listed global biotech company Alvotech in May 2024.

GR Infraprojects: The infra company has received a Letter of Acceptance from the National Highways Authority of India for a project worth ₹4,262.78 crore.

Zydus Lifesciences: The drug maker has received final approval from the US FDA to manufacture Apalutamide tablets in a 60 mg strength. 

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