Markets Welcome Fed's Rate Cut, Sensex Opens Over 83K, Nifty Above 25,400

In the pre-open session, the Sensex soared close to 400 points to cross 83K, as the Nifty jumped over 50 points to inch closer to 25,400, around 9:02 AM.

This helped boost optimism in the market, however, analysts hoped for a 50 bps cut from the regulator.

Source : ABPLIVE AI

The Indian markets looked set for a robust trading day on Thursday. The BSE Sensex opened the session at 83,040, soaring almost 350 points, while the NSE Nifty50 began the day at 25,421.35, rising 91 points.

 

On the 30-share Sensex, Infosys, HCL Tech, HDFC Bank, Tech M, and Sun Pharma emerged among the gainers. Meanwhile, the laggards included Bajaj Finance, Tata Steel, Bajaj Finserv, UltraTech Cement, and Axis Bank.

In the broader markets, the Nifty Bank led across the board and rose 0.44 per cent. Sectorally, the IT index stood out after it climbed 1.5 per cent. On the other hand, the Metal index slipped 0.24 per cent.

Notably, the US Fed opted to slash key interest rates by 25 basis points on Wednesday. This helped boost optimism in the market, however, analysts hoped for a 50 bps cut from the regulator.

 

The GIFT Nifty also surged more than 50 points to cross 25,300 today morning before markets opened. In the pre-open session, the Sensex soared close to 400 points to cross 83K, as the Nifty jumped over 50 points to inch closer to 25,400, around 9:02 AM.

 

"The ongoing rally in the market is driven by expectations of earnings revival and a positive outcome from the India-US trade negotiations," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

 

The global oil benchmark Brent crude slipped 0.16 per cent to touch $67.86 a barrel. Meanwhile, Foreign institutional investors (FIIs) again dumped Indian equities worth Rs 1,124.54 crore on Wednesday, according to exchange data.

 

"The Federal Reserve cut interest rates by 25 basis points, marking its first reduction of the year. In India, the Fed's actions could attract foreign capital, strengthening the rupee and benefiting stock indices like the BSE Sensex and NSE Nifty," explained Rajesh Palviya, SVP - Research, Axis Securities.

How Did Markets Fare On Sep 18?

Indian equity benchmarks extended gains for the second straight session on Wednesday, supported by firm buying in IT, banking and auto stocks as investors cheered progress in trade talks between India and the United States. The Sensex climbed 313.02 points, or 0.38 per cent, to close at 82,693.71 after touching an intraday high of 82,741.95, up 361.26 points. The Nifty advanced 91.15 points, or 0.36 per cent, to settle at 25,330.25.

The Commerce Ministry said discussions with the US delegation were “positive,” with both sides agreeing to intensify efforts to conclude a “mutually beneficial” agreement at the earliest. Nifty extended its bullish momentum today, opening positive and holding firm within the 25,300 zone throughout the session, reflecting strong underlying sentiment.