FX.co ★ Sensex, Nifty End Marginally Higher; Tata Group Stocks Decline

Indian stocks concluded Wednesday's unpredictable trading session with marginal gains, recovering from a significant drop in the previous session.

Investor sentiment primarily remained cautious due to surging global oil prices and anticipation surrounding the Federal Reserve's important monetary policy announcement, which was slated for later in the day.

The robust dollar and increased yields pressured risk appetite as market players waited to hear from Fed officials regarding potential interest rate reductions. The Fed's concurrent policy statement, along with the unveiling of dot plot projections and remarks from Fed Chair Jerome Powell on inflation and economic growth prospects, are expected to offer insights into the Fed's interest rate path for this year.

Following recent inflation data from the Consumer Price Index and producer price figures, signaling persisting inflation, traders are currently pricing in less than a 50% probability of an interest rate cut in June.

The benchmark S&P BSE Sensex ended the fluctuating session up 89.64 points, or 0.12%, at 72,101.69, while the broader NSE Nifty index settled 21.65 points, or 0.1%, higher at 21,839.10.

Automakers led the day's gains, with Eicher Motors and Maruti Suzuki India climbing 4.3% and 2.8%, respectively. Similarly, Nestle India, Power Grid Corp and SBI rose by around 2%.

Meanwhile, Tata Group stocks suffered the most losses, with Tata Motors, Tata Consumer Products and Tata Steel all decreasing by between 1% and 2%.