Mumbai, Sep 18 : Stock markets advanced for the third consecutive day on Thursday, with the benchmark Sensex gaining 320 points to close above 83,000 level after the US Federal Reserve cut its key interest rate by 25 basis points and signalled the possibility of two additional rate reductions this year.
The 30-share BSE Sensex rallied 320.25 points or 0.39 per cent to settle at 83,013.96. During the day, it jumped 447.5 points or 0.54 per cent to 83,141.21.
The 50-share NSE Nifty climbed 93.35 points or 0.37 per cent to 25,423.60.
Shares of pharma, IT and financial companies edged higher while realty and energy stocks ended on a muted note.
The market sentiment was bolstered primarily by the US Federal Reserve’s rate cut, which boosted risk sentiment globally, analysts said.
Among Sensex firms, Zomato-owner Eternal rose the most by 2.96 per cent on positive bets by brokerages. Sun Pharma, Infosys and HDFC Bank rose more than 1 per cent. HCL Tech, Hindustan Unilever, Power Grid, ITC and Adani Ports were also among the gainers.
Tata Motors emerged as the biggest loser among Sensex shares, dropping by 1.13 per cent. Trent, Bajaj Finance and Asian Paints were among the laggards.
“Indian equities extended gains after the Fed’s 25 bps rate cut and indication for further easing. IT and Pharma outperformed on expectations of higher spending and stronger export prospects. Although elevated valuations and a firm dollar index prompted intermittent profit-booking, comfort in private banks and midcap helped in sustaining the positive bias and regain the trend,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
The BSE midcap gauge went up by 0.36 per cent while smallcap index ended flat, marginally lower by 0.01 per cent.
Among sectoral indices, healthcare jumped 0.87 per cent, BSE Focused IT by 0.84 per cent, IT by 0.81 per cent, teck by 0.57 per cent, financial services by 0.48 per cent and metal by 0.35 per cent.
Capital Goods, services, industrials, energy and commodities were the laggards.
“The market’s upward momentum was underpinned primarily by the US Federal Reserve’s rate cut of 25 basis points, which boosted risk sentiment globally. Besides, the sentiment stayed constructive, supported by sustained domestic flows and rotational buying in key sectors,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
As many as 2,182 stocks advanced while 1,993 declined and 167 remained unchanged on the BSE.
Meanwhile, Chief Economic Adviser V Anantha Nageswaran on Thursday said he expects that a solution to the tariff issues with the US is likely to arrive in the next eight to ten weeks.
In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index settled over 1 per cent higher while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended more than 1 per cent lower.
Markets in Europe were trading significantly higher. US markets ended on a mixed note on Wednesday.
“On the global front, the US Fed’s 25 bps rate cut lifted investor sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Global oil benchmark Brent crude dipped 0.56 per cent to USD 67.57 a barrel.
Foreign institutional investors (FIIs) again offloaded equities worth Rs 1,124.54 crore on Wednesday after a day’s breather, according to exchange data.
On Wednesday, the Sensex edged higher by 313.02 points or 0.38 per cent to settle at 82,693.71. The Nifty climbed 91.15 points or 0.36 per cent to 25,330.25. (PTI)
