Sensex Above 76K As Mkts Surge For 4th Day

Mumbai: Rallying for the fourth straight session, stock market benchmarks Sensex and Nifty surged over one per cent on Thursday, powered by across-the-board buying amid a mixed trend in global equities after the US Federal Reserve maintained its rate cut projections for this year.

Hectic buying in market heavyweights Reliance Industries, Bharti Airtel and IT stocks bolstered investor sentiment, traders said. The 30-share BSE benchmark Sensex jumped 899.01 points or 1.19 per cent to settle at 76,348.06, regaining the 76,000 level. During the day, it soared 1,007.2 points or 1.33 per cent to 76,456.25. The NSE Nifty surged 283.05 points or 1.24 per cent to reclaim the 23,000-mark to finish at 23,190.65.

“Nifty surged by 283 points, marking gains for the fourth consecutive day as all sectors closed in the green. Optimism was driven by signals of two Fed rate cuts in 2025 and hopes of a halt in FII selling,” said Prashanth Tapse, Senior V-P (Research), Mehta Equities Ltd.

As many as 2,410 stocks advanced while 1,606 declined and 129 remained unchanged on the BSE.

“On Wednesday, the Federal Reserve announced its decision to keep the policy rate in the 4.25-4.50 per cent range. Policymakers anticipate two rate cuts in 2025, with economic growth projected at 1.7 per cent and inflation at 2.7 per cent for the year. Overall, this decision has mixed implications for currency movements, capital flows and market sentiment in India. Higher US interest rates could lead to foreign capital outflows from Indian markets, whereas lower rates may attract investment,” added Ravi Singh, Sr V-P (Retail Research), Religare Broking Ltd.

The BSE smallcap gauge climbed 0.73 per cent, and the midcap index rose 0.61 per cent.

“Additionally, broader market participation and themes such as defence and railways have further eased pressure,” said Ajit Mishra, sr V-P (Research), Religare Broking Ltd.

All BSE sectoral indices ended higher, where telecommunication jumped 1.94 per cent, teck (1.89 per cent), oil & gas (1.56 per cent), energy (1.42 per cent), auto (1.39 per cent) and BSE Focused IT (1.23 per cent).

“Consistent falls of the US dollar index (DXY) have reduced the intensity of FII selling while DII buying continues to be strong, thus triggering the recent upside,” said Vinod Nair, Head (Research), Geojit Financial Services.

The stability in global markets and moderation in FII selling have significantly improved sentiment. Notably, the recovery in banking and financial stocks, alongside strength in metal, real estate, and energy heavyweights, has played a crucial role in sustaining the momentum.

“Fed continues to project an additional two rate cuts this year, which may create a tailwind for global equities in the near term,” remarked Dhawal Ghanshyam Dhanani, fund manager at SAMCO Mutual Fund.