Indian equity benchmarks gained for the third consecutive session on Thursday, supported by strong buying in IT stocks after the US Federal Reserve announced a rate cut.
The Sensex closed at 83,013.96, higher by 320.25 points or 0.39 per cent, while the Nifty ended at 25,423.60, up 93.35 points or 0.37 per cent.
The 30-share BSE index opened with a gap-up at 83,108.92 against the previous close of 82,693.71, tracking positive global cues. The index, however, traded in a narrow range through the session, with IT shares providing most of the support.
“Global equities traded in the green after the U.S. Federal Reserve cut rates by 25 basis points to 4–4.25 per cent and signalled two more reductions this year to cushion rising 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,” Ashika Institutional Equities said in a note.
Among Sensex constituents, Infosys, HCL Tech, ITC, HDFC Bank, PowerGrid, Sun Pharma, Hindustan Unilever, Tata Steel, Axis Bank, Bajaj Finserv, and Eterna ended in positive territory. Bajaj Finance, Tata Motors, Trent, Ultratech Cement, and Asian Paints closed lower.
Sectoral indices largely stayed in the green amid value buying. Nifty IT rose 303 points or 0.83 per cent, Nifty Bank climbed 234 points or 0.42 per cent, Nifty Fin Services gained 135 points or 0.51 per cent, Nifty FMCG advanced 201 points or 0.36 per cent, and Nifty Auto added 34 points or 0.13 per cent.
Broader markets also extended gains, with Nifty Midcap 100 up 224 points or 0.38 per cent, Nifty Small Cap 100 rising 53 points or 0.29 per cent, and Nifty 100 gaining 91 points or 0.35 per cent.
On the currency front, the rupee closed weaker by 0.26 at 88.09 against the US dollar despite a soft dollar index post-Fed policy. “The rupee failed to gain as FII sentiment remained cautious, while ongoing India-US trade talks will be the next key trigger. Support for the rupee lies near 87.75, while resistance is seen at 88.25,” said Jateen Trivedi of LKP Securities.
-IANS