Nifty, Sensex settle nearly 1% higher ahead of interim budget, US Fed interest rate decision

• The 30-share BSE Sensex jumped 612.21 points or 0.86% to settle at 71,752.
• Sun Pharma, Tata Motors, State Bank of India, Mahindra & Mahindra, Maruti were some of the top gainers.
• Larsen & Toubro declined over 4% after its December quarter earnings.

Benchmark equity indices, the Nifty and the Sensex, climbed nearly 1% on Wednesday on buying in HDFC Bank and Reliance Industries. Investors are eyeing the two important events lined up -- the interim budget 2024, which will be presented by Finance Minister Nirmala Sitharaman on February 1, and the US Fed interest rate decision -- to derive further cues.

Recovering all the early lost ground, the 30-share BSE Sensex jumped 612.21 points or 0.86% to settle at 71,752.11. During the day, it zoomed 711.49 points or 1% to 71,851.39.

The Nifty climbed 203.60 points or 0.95% to 21,725.70.

Among the Sensex firms, Sun Pharma, Tata Motors, State Bank of India, Mahindra & Mahindra, Maruti, Bajaj Finserv, Power Grid and UltraTech Cement were the major gainers.

Larsen & Toubro declined over 4% after its December quarter earnings. Titan also ended lower from the 30-share pack.

In Asian markets, Tokyo, Shanghai and Hong Kong ended lower while Seoul settled in the green.

European markets were trading on a mixed note. The US markets ended mostly down on Tuesday.

"A positive build-up was reflected in Indian markets prior to the interim budget, although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues. The overall trend in the market is akin to a see-saw, and the buy-on-dips strategy is effective as of now. Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down," said Vinod Nair, Head of Research, Geojit Financial Services.

Global oil benchmark Brent crude declined 0.91% to USD 82.12 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,970.52 crore on Tuesday, according to exchange data.

The BSE benchmark fell by 801.67 points or 1.11% to settle at 71,139.90 on Tuesday. The Nifty declined 215.50 points or 0.99% to 21,522.10.