Stock Market Expected to Open Flat Amid US Fed Meet and Other Key Factors

Indian Stock Market Witnesses Volatility on Friday

The Indian stock market experienced a highly volatile session on Friday, with the key benchmark indices finishing lower. The Nifty 50 index lost 97 points to close at 23,995, while the BSE Sensex declined by 416 points to end at 76,886. The Bank Nifty index plummeted 863 points or 1.54% to finish at 55,400.

Sectorally, the trend remained mixed, with energy, metals, and select pharma stocks providing support, while banking, auto, and financials faced significant pressure. However, broader markets showed resilience, with midcap and smallcap indices advancing nearly half a percent each, indicating selective participation.

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The Gift Nifty live chart indicated a flat trading session, with the index opening lower at 24,075 and making an intraday low of 24,072 within a few minutes. However, the index rebounded, reaching an intraday high of 24,128.

Market experts are cautious about the Indian stock market sentiment, but some expect a flat opening on Wednesday. Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, believes the market may open flat, while Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, expects a positive opening.

Global Markets Reflect Uncertainty

Overnight, US markets pulled back, with both the S&P 500 and the Nasdaq Composite closing lower after retreating from recent record highs. The decline was largely driven by weakness in the technology sector, following concerns about growth expectations in the AI segment. This has introduced a layer of caution in global risk sentiment, particularly for tech-heavy indices.

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Asian markets are reflecting this uncertainty with a mixed opening. Investors are balancing the impact of softer US cues with fresh developments in the energy space.

US Fed Rate in Focus

The US central bank is widely expected to keep interest rates unchanged at its policy meeting next week, as energy prices stay high and supply chains are snarled due to the war in the Middle East. The Federal Reserve's two-day meeting, starting Tuesday, could be Chairman Jerome Powell's last at the helm of the independent institution.

Crude Oil Price Rises

Following developments among OPEC members, crude oil prices rose in the early morning session on Wednesday. WTI crude oil prices regained the psychological $100/bbl level, inching close to a three-week high. The WTI crude oil price today opened flat, but soon gained momentum, reaching an intraday high of $100.36/bbl. The Brent crude oil price also hit an intraday high of $104.97/bbl, rising more than 1.25% against the intraday low of $103.68 per barrel.

Gold, Silver Rates Stable

The COMEX gold rate today is trading flat at around $4,615 per ounce, whereas the COMEX silver rate today is around $73.720/oz, logging an intraday gain of over 0.50%.

India VIX Moderates

From a domestic standpoint, volatility indicators suggest a relatively stable yet sensitive setup. India VIX has moderated to around 18 levels, indicating that while extreme fear has receded, the market still carries a premium for uncertainty.

Regional Politics and Earnings

The decision by the Organization of the Petroleum Exporting Countries (OPEC) to see the exit of the United Arab Emirates (UAE) from May 1 adds a new dimension to the global oil supply outlook. Earnings will remain the key driver for stock-specific action, with Bajaj Finance, Federal Bank, Adani Power, and Vedanta Limited expected to drive sector-specific momentum.

Stock Recommendations

Market experts have recommended the following eight stocks for intraday trading: