Sensex, Nifty gave up early trading gains, investors await minutes of RBI's policy meet

The domestic benchmark indices recouped much of the losses after a volatile trading session on Tuesday. On Wednesday, both BSE Sensex and Nifty-50 opened mildly in green, taking cues from the broader financial market.

The BSE Sensex opened at 61,993 points and currently trading down almost 400 points or 0.6% from the previous close of 61,702 points, while NSE Nifty-50 started trading at 18,435 points and currently trading down 100 points from the previous close of 18,385 points as of 1:40 PM. Nifty Bank also opened above the 43,500 mark but currently trading barely above at 43,000 mark.

Prashanth Tapse, Research Analyst and Senior VP (Research) at Mehta Equities said, "Early optimism is seen as key benchmark indices are likely to start on a firm note on the back of strong gains in SGX Nifty and other Asian gauges following overnight recovery in the US markets. Local traders would be eyeing the minutes of the recently concluded RBI's monetary policy meeting set to be released later today. The minutes will throw some light on the reasons behind undertaking the previous rate hike and indication of what could be in store going ahead with regards to RBI's rate setting decision."

The US stock market rose marginally on Tuesday, bouncing back after a consecutive decline in the last four sessions. The Dow Jones Industrial Average gained 92 points or 0.28%, while S&P 500 rose 4 points or 0.1% and Nasdaq added only 1 point.

Despite clocking marginal gains early in the trading session, the momentum will likely be muted in the absence of fresh cues. The investors will keep an eye on RBI's recently held monetary policy meeting minutes. However, RBI is expected to remain hawkish, calibrated and deliberate for some time to break core inflation persistence.