Indian benchmark indices surged on Thursday, with the Sensex rallying 900 points and the Nifty50 closing above 23,150. Gains in banking and IT stocks fueled the rally as the U.S. Federal Reserve maintained its rate-cut projections for the year despite concerns over tariffs.
The BSE Sensex climbed 899 points, or 1.19%, to settle at 76,348, while the Nifty50 gained 283 points, or 1.24%, ending at 23,190.
The total market capitalisation of all BSE-listed companies jumped by Rs 3.32 lakh crore to Rs 408.32 lakh crore.
Why the stock market rose today 1) Fed signals two rate cuts in 2025
The U.S. Federal Reserve kept interest rates unchanged, as expected, and maintained its projection of two quarter-point rate cuts by the end of 2025, in line with its December forecast.
However, the Fed lowered its economic growth outlook and raised inflation expectations, citing the impact of tariffs imposed by U.S. President Donald Trump. With most tariffs set to take effect in early April, policymakers are monitoring their impact on inflation and economic conditions.
Lower U.S. interest rates weaken the dollar and reduce Treasury yields, making emerging markets like India more attractive to foreign investors.
“The Fed holding the rates and projecting lower growth at 1.7% and higher inflation at 2.8% for 2025 are on expected lines. More significant is the Fed chief’s comment that policy can move either way depending on the evolving outlook. The evolving outlook is highly uncertain thanks to Trump’s tariff tantrums,” Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Servic
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