Stock Market Rises For Third Straight Day On US Fed Rate Cut, IT Buying

The stock market extended gains for the third consecutive session on Thursday, driven by strong buying in IT stocks after the US Federal Reserve announced a rate cut.

The Sensex closed at 83,013.96, up 320.25 points or 0.39%, while the Nifty settled at 25,423.60, up 93.35 points or 0.37%.

The 30-share index opened with a gap-up at 83,108.92, compared to the previous close of 82,693.71, and remained range-bound for most of the session.

Ashika Institutional Equities noted that global equities traded in the green after the US Fed reduced rates by 25 bps to 4–4.25%. The Fed also signalled two more cuts this year to cushion job market risks.

“Mirroring the upbeat global sentiment, Indian markets opened with a positive gap-up and maintained a sideways trajectory through the first half of the session,” the brokerage said.

Gainers and Losers

Among Sensex stocks, Eternal, Sun Pharma, Infosys, HDFC Bank, PowerGrid, HCL Tech, ITC, Hindustan Unilever, Tata Steel, Axis Bank, and Bajaj FinServ closed higher.

On the other hand, Bajaj Finance, Tata Motors, Trent, Ultratech Cement, and Asian Paints ended in the red.

Sector-wise, the majority of indices ended in green amid value buying. Nifty IT jumped 303 points (0.83%), while Nifty Bank, Fin Services, FMCG, and Auto indices also ended higher.

The broader indices extended their positive momentum. Nifty Small Cap 100 jumped 53 points (0.29%), Nifty Midcap 100 rose 224 points (0.38%), and Nifty 100 gained 91 points (0.35%).

The rupee ended weaker by 0.26 at 88.09, even though the dollar index softened post-Fed policy.

Jateen Trivedi of LKP Securities explained that the roadmap for further cuts remained uncertain and data-dependent on US jobs. He added that cautious FII sentiment and ongoing India-US trade talks kept the rupee under pressure.

“Support for the rupee lies near 87.75, while resistance is seen at 88.25,” Trivedi said.

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