Indian benchmark indices continued their winning trend for the third consecutive session on Thursday, led by heavy buying in IT counters following an interest rate cut by the US Federal Reserve.
The Sensex rose 320.25 points, or 0.39 per cent, to close at 83,013.96. Opening higher at 83,108.92 from Wednesday's close of 82,693.71, the index largely traded range-bound during the day, with IT stocks giving the major thrust.
The broader Nifty index also closed in the positive, rising 93.35 points, or 0.37 per cent, to close at 25,423.60.
"Global equities traded in the green following the U.S. Federal Reserve reducing rates by 25 bps to 4–4.25 per cent and indicated two more reductions during the year to insulate growing job market risks. Reflecting the positive global mood, Indian markets opened with a positive gap-up and continued a sideways path during the first half of the session," Ashika Institutional Equities said.
Among Sensex members, major gainers were Eternal, Sun Pharma, Infosys, HDFC Bank, PowerGrid, HCL Tech, ITC, Hindustan Unilever, Tata Steel, Axis Bank, and Bajaj FinServ. Conversely, Bajaj Finance, Tata Motors, Trent, Ultratech Cement, and Asian Paints finished in the red.
On a sectoral basis, all the indices gained on value buying. Nifty IT was the top gainer, jumping 303 points or 0.83 per cent. Nifty Fin Services gained 135 points (0.51 per cent), Nifty Bank increased 234 points (0.42 per cent), Nifty FMCG rose by 201 points (0.36 per cent), and Nifty Auto gained 34 points (0.13 per cent).
Larger markets too retained their positive tone as midcap and small-cap stocks witnessed new buying. Nifty Small Cap 100 rose 53 points (0.29 per cent), Nifty Midcap 100 rose 224 points (0.38 per cent), whereas Nifty 100 closed 91 points (0.35 per cent) up.
However, the rupee fell 0.26 to close at 88.09 against the dollar, even though the dollar index continued to remain weak in the wake of the Fed decision.
"Rupee closed down at 0.26 to 88.09 even though the dollar index remained soft after Fed policy when a rate cut was announced but forward guidance was mixed as the path for further cuts was uncertain and data-dependent on jobs," said Jateen Trivedi of LKP Securities.
He further said that foreign investor sentiment remained guarded, which kept the rupee under stress. The ongoing dialogue between India and the US on trade is likely to be the next major trigger. The rupee's support is being viewed around 87.75, while resistance is around 88.25 technically.
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