Stock Market Today: Sensex Jumps Over 470 Points, Nifty At 23,048

The Federal Reserve decided to maintain interest rates at 4.25-4.50 per cent, while acknowledging increased economic uncertainty

Midcap and small-cap stocks took the spotlight once again, with the Midcap 100 and Smallcap 100 indices rising by 0.8 per cent and 1 per cent, respectively, continuing their strong performance

Source : ABPLIVE AI

Indian benchmark indices Nifty and Sensex opened strong on Thursday, marking their fourth consecutive day of gains. This followed US Fed Chair Jerome Powell's confirmation of plans for two rate cuts in 2025. The rally was led by rate-sensitive IT stocks, which propelled the indices higher.

At 10 am, the Sensex gained 391.57 points, or 0.52 per cent, reaching 75,840.62, while the Nifty rose by 116.75 points, or 0.51 per cent, to 23,024.35. Of the total shares traded, 2,305 advanced, 896 declined, and 133 remained unchanged.

Small-cap And Mid-cap

Midcap and small-cap stocks took the spotlight once again, with the Midcap 100 and Smallcap 100 indices rising by 0.8 per cent and 1 per cent, respectively, continuing their strong performance. Although small-cap valuations have cooled, they are still not considered cheap. Some market analysts anticipate that large-cap stocks will see stronger inflows, followed by small caps, while midcaps might experience some near-term pressure.

Encouraged by this development, Wall Street extended its initial gains to close the overnight session on a positive note. The Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq all recorded gains of 1-1.4 per cent. Asia-Pacific markets followed suit, rising in response to Wall Street’s performance after the Federal Reserve opted to keep interest rates unchanged and minimized concerns about a severe economic downturn.

The Federal Reserve decided to maintain interest rates at 4.25-4.50 per cent, while acknowledging increased economic uncertainty, particularly related to inflation risks stemming from Trump's proposed tariffs.

"In the Indian market, two key trends stand out. Domestic consumption themes are gaining traction, while export-driven IT stocks remain under pressure. At the same time, previously underperforming sectors like defence and shipping are seeing renewed interest, alongside strong momentum in consumer-focused digital stocks. This trend is likely to continue. However, the broader market may remain in a wait-and-watch mode until April 2, when reciprocal tariffs are announced," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

"The Fed holding the rates and projecting lower growth at 1.7 percent and higher inflation at 2.8 percent for 2025 are on expected lines. More significant is the Fed chief’s comment that policy can move either way depending on the evolving outlook. The evolving outlook is highly uncertain thanks to Trump’s tariff tantrums," he added.