Sensex and Nifty Maintain Positive Momentum, Up 1% Following US Fed's Decision

Synopsis

On March 20, the Indian stock markets saw both Sensex and Nifty rise by over 1%, driven by strong sectoral buying and the US Federal Reserve's decision to maintain interest rates. The market sentiment remained positive with most stocks closing in the green.

Key Takeaways

Sensex closed at 76,348.06
Nifty finished at 23,190.65
Most Nifty stocks ended in the green
US Fed hinted at potential rate cuts
Indian rupee improved to 86.36 per dollar

Mumbai, March 20 (NationPress) The Indian stock markets continued their positive trajectory on Thursday, with both the Sensex and Nifty recording gains of over 1 percent, driven by strong buying across multiple sectors.

Both indices responded to global market trends after the US Federal Reserve decided to keep interest rates steady. The Federal Reserve maintained its policy rate within the range of 4.25 percent to 4.50 percent but indicated a possible half-percentage-point reduction by the year's end.

The Sensex concluded the trading session at 76,348.06, marking an increase of 899 points or 1.19 percent. Intraday, it fluctuated between 76,456.25 and 75,684.58.

Similarly, the Nifty surged by 283 points or 1.24 percent, finishing at 23,190.65. The index reached an intraday high of 23,216.70 and dipped to a low of 22,973.95.

Market sentiment remained optimistic, with 44 out of 50 Nifty stocks closing in positive territory.

Notable gainers included Bharti Airtel, Titan, Britannia, Eicher Motors, and Bajaj Auto, which experienced increases of up to 4.08 percent.

Conversely, some stocks like IndusInd Bank, Trent, Shriram Finance, and Bajaj Finance saw declines. UltraTech Cement and Axis Bank remained unchanged.

Broader market indices also fared well, with the Nifty Midcap100 rising by 0.64 percent and the Nifty Smallcap100 increasing by 0.70 percent.

All sectoral indices on the NSE ended positively, with sectors such as IT, Auto, FMCG, Metal, Media, Realty, Oil & Gas, Consumer Durables, and Healthcare gaining over 1 percent each.

While every sector concluded in the green, these showed remarkable strength. The US indices also posted gains, further enhancing market sentiment.

Experts suggest that the key driver behind today’s rally was the Federal Reserve’s decision to maintain interest rates while hinting at two potential cuts later this year, which ignited optimism across global markets.

The Indian rupee also appreciated, closing at 86.36 per dollar compared to the prior day's close of 86.44.

Sundar Kewat from Ashika Institutional Equity noted that sectoral performance was generally positive, with Oil and Gas, Consumption, IT, Automobiles, and Consumer Goods leading the upward trend.

In the broader Indian markets, Nifty Midcap 100 and Nifty Smallcap indices showed significant gains, reflecting widespread buying interest, he added.