Indian benchmark indices Sensex and Nifty opened with significant gains on Thursday, driven largely by a rally in IT stocks. The positive market sentiment followed the US Federal Reserve's decision to cut its key interest rate by 25 basis points, with signals of two more potential reductions later this year.
In early trade, the 30-share BSE Sensex jumped 447.5 points to 83,141.21, while the 50-share NSE Nifty climbed 118.7 points to 25,448.95.
Leading the charge were major IT companies like Infosys, HCL Tech, and Tech Mahindra. Other notable gainers included HDFC Bank, Sun Pharma, and Tata Motors. On the flip side, stocks such as Bajaj Finance, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank were trading lower.
Market experts pointed to the Fed's announcement as the primary catalyst. According to a report from Motilal Oswal Financial Services, the hint of two additional rate cuts boosted investor confidence, leading to a strong opening in Asian markets and a rise in US index futures.
Rajesh Palviya of Axis Securities told agencies that the Fed's move could be particularly beneficial for India by attracting more foreign capital. This, in turn, could strengthen the rupee and provide a further lift to the BSE Sensex and NSE Nifty.
Adding to this perspective, V.K. Vijayakumar of Geojit Investments Limited told agencies that the current market rally is also supported by optimism around a revival in corporate earnings and expectations of a positive outcome from India-US trade talks.
Global cues and market data
The positive trend in India mirrored gains in other Asian markets, with indices in South Korea, Japan, and Shanghai trading higher. However, Hong Kong's Hang Seng saw a decline. This followed a mixed session in US markets on Wednesday.
Meanwhile, the global oil benchmark Brent crude experienced a slight dip of 0.16 per cent, trading at $67.86 a barrel.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers on Wednesday, offloading equities worth ₹1,124.54 crore.
The strong opening on Thursday built on the previous day's gains, where the Sensex had closed 313.02 points higher at 82,693.71, and the Nifty had settled up 91.15 points at 25,330.25.
