Indian Markets React Positively to US Fed Signals

Indian markets responded favorably to the positive global sentiment on Thursday, with the Nifty 50 ending the day at 22,011.95, up 173 points, and the Sensex closing 540 points, up at 72,641.19. All sectors were in positive territory, with Nifty Metal and Nifty PSU Bank witnessing significant gains at 2.5 percent each.

The Dollar Index dipped below 103 after the US Fed maintained a dovish stance for the year. The domestic market took cues from the global market, with optimism infused as the Federal Reserve signaled three interest rate cuts this year despite inflation staying above the long-term target.

Short-term traders are taking advantage of the oversold territory from the recent sell-off. The Sensex managed to move past the important 50-EMA level of 72,200 zone, gaining 515 points as the sentiment improved with a positive bias. Construction, metals, PSU banks, media & entertainment, energy, consumer durables, financial services, and pharma stocks moved the index higher on Thursday.

According to Vikram Kasat, Head-Advisory at Prabhudas Lilladher, the positive global sentiment was spurred by the outcome of the US FOMC meeting, bolstering hopes for three rate cuts in FY25. All sectors in the domestic market were in positive territory, with the Dollar Index dipping below 103 after the US Fed maintained a dovish stance for the year.

Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the domestic market is taking cues from the global market, infused with optimism as the Federal Reserve signaled three interest rate cuts this year. The broader market outperformed the benchmarks, also taking advantage of the HSBC composite PMI data, indicating supportive economic conditions.

Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher, noted that from the low made near the 71,675 zone in the previous session, the Sensex managed to move past the important 50-EMA level of 72,200. The Sensex gained 515 points as the sentiment improved, with a further rise anticipated.