The Indian benchmark indices opened higher on Thursday, riding a wave of positive global cues. This uptick came after the US Federal Reserve announced a rate cut. Investors responded with optimism, driving early gains.
At 9.24 am, the Sensex was up 347 points, reaching 83,041. The Nifty climbed 89 points to 25,419. Both indices showed strong momentum from the start.
The Federal Reserve cut rates by 25 basis points. This move brought the target range to 4.0-4.25 percent. Officials cited shifting risk dynamics in the economy.
They also projected two additional rate cuts this year. By the end of 2025, rates are forecast to hit 3.50-3.75 percent. This outlook fueled market confidence.
The rate cuts were widely anticipated. Concerns over weak labor market data and high inflation intensified. These factors prompted the Fed’s decision.
Broad cap indices joined the rally. The Nifty Midcap 100 inched up by 0.08 percent. The Nifty Small cap 100 jumped 0.68 percent.
Major gainers on the Nifty included Tech Mahindra, ICICI Bank, and TCS. Bajaj Finserv and Trent also saw increases. Hindalco and Bajaj Finance were among the losers.
Sectoral indices showed varied performance. Nifty IT jumped 1.5 percent, leading the gains. Nifty Realty and Nifty Pharma also advanced.
Except for metal, all other sectoral indices traded in the green. This broad-based strength highlighted positive sentiment.
The Nifty 50 held firmly above the 25,300 mark. This reinforced psychological strength. It signaled investor comfort at higher levels.
Analysts noted potential upside momentum. Resistance is expected around the 25,400-25,500 zone. Support remains at 25,000-24,900.
VK Vijayakumar commented on the situation. He pointed to cooling labor markets and modest GDP growth. More cuts seem possible this year.
The ongoing rally stems from earnings revival hopes. Positive outcomes from India-US trade talks also help. These factors drive market optimism.
Asia-Pacific markets were largely positive. US-China trade progress boosted sentiment. Most indices recorded gains during the session.
Foreign institutional investors net sold equities worth Rs 1,124 crore. Domestic institutional investors were net buyers. They acquired equities worth Rs 2,293 crore.