Sensex and Nifty Maintain Ascending Momentum, Surging Over 1% Following US Federal Reserve Decision
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Synopsis
On March 20, Indian stock markets saw both the Sensex and Nifty rise over 1% following the US Federal Reserve's decision to maintain interest rates. This led to increased buying across various sectors, enhancing overall market sentiment.
Key Takeaways
- Sensex closed at 76,348.06, gaining 899 points
- Nifty ended at 23,190.65, rising 283 points
- 44 out of 50 Nifty stocks closed in the green
- Positive performance in all sectoral indices
- Improvement in the Indian rupee, closing at 86.36 per dollar
Mumbai, March 20 (NationPress) The Indian stock markets continued their upward trajectory on Thursday, with both Sensex and Nifty closing up by more than 1 percent, driven by robust buying across multiple sectors.
Both exchanges responded positively to global market trends after the US Federal Reserve opted to keep interest rates steady. The US Fed retained its policy rate within the 4.25 percent to 4.50 percent range but hinted at a possible half-percentage-point cut by year-end.
The Sensex concluded at 76,348.06, marking an increase of 899 points or 1.19 percent. During the intra-day trading, it fluctuated between 76,456.25 and 75,684.58.
The Nifty also experienced a significant rise of 283 points or 1.24 percent, closing at 23,190.65. The index peaked at 23,216.70 and dipped to 22,973.95 during the day.
Market sentiment remained optimistic, with 44 out of 50 Nifty stocks finishing in the positive territory.
The top performers included Bharti Airtel, Titan, Britannia, Eicher Motors, and Bajaj Auto, which saw gains as high as 4.08 percent.
Conversely, a few stocks like IndusInd Bank, Trent, Shriram Finance, and Bajaj Finance closed lower, while UltraTech Cement and Axis Bank remained unchanged.
The broader market indices also showed strong performance. The Nifty Midcap100 index climbed 0.64 percent, while the Nifty Smallcap100 index increased by 0.70 percent.
All sectoral indices on the NSE concluded with gains. Sectors such as IT, Auto, FMCG, Metal, Media, Realty, Oil & Gas, Consumer Durables, and Healthcare all surged by over 1 percent.
While all sectors ended positively, these sectors exhibited notable strength. The US indices also gained, further enhancing market sentiment.
According to analysts, the primary driver of today’s rally was the Federal Reserve's decision to maintain interest rates while indicating two potential rate cuts later in the year, which fostered optimism in global markets.
The Indian rupee showed improvement, finishing at 86.36 per dollar, compared to the prior day’s closing of 86.44.
Sundar Kewat from Ashika Institutional Equity noted that sectoral performance was predominantly positive, with Oil and Gas, Consumption, IT, Automobiles, and Consumer Goods leading the gains.
In the wider Indian markets, Nifty Midcap 100 and Nifty Smallcap indices recorded significant gains, reflecting widespread buying interest, he added.
