MUMBAI: Stock markets extended their winning streak for the fourth consecutive session on Thursday, with benchmark indices Sensex and Nifty gaining over 1 per cent. Broad-based buying, led by heavyweights like Reliance Industries, Bharti Airtel, and IT stocks, boosted investor sentiment, even as global markets showed a mixed trend following the US Federal Reserve’s decision to maintain its rate cut projections for the year.
The BSE Sensex surged 899.01 points or 1.19 per cent to close at 76348.06, reclaiming the 76,000 mark. The index had soared 1007.2 points or 1.33 percent to an intraday high of 76,456.25. The NSE Nifty climbed 283.05 points or 1.24 percent to 23190.65, breaching the 23000 level.
Bharti Airtel, Titan, Tata Consultancy Services, Hindustan Unilever, Infosys, Nestle, Reliance Industries, Mahindra & Mahindra, HDFC Bank, and Tata Motors led the gains in the Sensex pack.
On the other hand, IndusInd Bank, Bajaj Finance, and UltraTech Cement ended in the red.
The US Federal Reserve left its policy rate unchanged in the 4.25-4.50 per cent range, reaffirming its projection of two rate cuts in 2025. Policymakers expect economic growth at 1.7 per cent and inflation at 2.7 per cent for the year.
“Higher US interest rates could lead to foreign capital outflows from Indian markets, whereas lower rates may attract investment,” said Ravi Singh, SVP – Retail Research, Religare Broking Ltd.
Asian markets
Among Asian markets, Seoul ended in positive territory, while Shanghai and Hong Kong closed lower.
Japan’s Nikkei remained shut for a holiday. European stocks were trading lower, while US markets ended significantly higher overnight.
“The decline in the US dollar index has reduced the intensity of foreign investor selling, while strong domestic institutional buying continues to support the market rally,” said Vinod Nair, Head of Research, Geojit Financial Services.
Brent crude oil prices rose 0.32 per cent to $71.01 per barrel.
Foreign institutional investors (FIIs) offloaded equities worth Rs1,096.50 crore on Wednesday after a brief pause, according to exchange data. Meanwhile, domestic institutional investors (DIIs) remained strong buyers, purchasing equities worth Rs2140.76 crore.
“With the Fed still projecting two more rate cuts this year, global equities may find near-term tailwinds,” said Dhawal Ghanshyam Dhanani, Fund Manager at SAMCO Mutual Fund.
On Wednesday, the Sensex had gained 147.79 points or 0.20 per cent to settle at 75,449.05, while the Nifty rose 73.30 points or 0.32 per cent to 22,907.60
