Benchmark stock market indices closed marginally higher on Wednesday fuelled by a rally in IT stocks.

The S&P BSE Sensex gained 149.85 points to close at 79,105.88, while the NSE Nifty50 added 4.75 points to end at 24,143.75.

“The domestic market traded within a narrow range; even as global markets saw a positive turnaround. Investors adopted a cautious stance due to weak domestic sentiment and the risks of earnings downgrades. Meanwhile, a decline in WPI inflation, driven by lower food prices, signals that the RBI is progressing towards its price stability target. The IT index edged up, reflecting optimism for improved US CPI data expected later today, which could increase the scope of a loose monetary policy from the Fed,” said Vinod Nair, Head of Research, Geojit Financial Services.

Vaibhav Vidwani, Research Analyst, Bonanza Portfolio Ltd said that stock markets closed on a sideways note and the movement followed a two-day decline, buoyed by optimism from the US markets, which rallied on expectations of a potential Federal Reserve rate cut in September due to softening inflation indicators.