Site icon VersLog

Markets Rally Ahead of Fed Decision: Sensex Gains 600 Points, IT and Broader Markets Lead Surge

Sensex Gains 600 Points

Markets Rally Ahead of Fed Decision: Sensex Gains 600 Points, IT and Broader Markets Lead Surge

Market Overview

Indian equity markets extended their winning streak for the second consecutive session, with the Sensex closing up 654 points at 76,555 and Nifty gaining 206 points to end at 23,163. The rally came ahead of the Federal Open Market Committee’s (FOMC) interest rate decision, with strong performances from banking and IT sectors leading the gains.

Sector Performance in Sensex 

The Nifty IT index emerged as a significant gainer, breaking its two-day losing streak with a 2.5% surge. This recovery aligned with the global tech sector rebound, particularly following Nvidia’s 9% comeback and Apple’s 4% jump in US markets. The banking sector continued its positive momentum, with Nifty Bank rising 0.6%, building on its previous session’s 1.7% gain. Among all sectoral indices, only Nifty FMCG showed weakness, declining 0.4%.

Broader Market Strength in Sensex

Small and midcap stocks showed remarkable strength, with both BSE Smallcap and BSE Midcap indices rising 3% each, snapping their three-day losing streak. The market breadth was notably positive, with 2,152 stocks advancing compared to 406 declining on the NSE.

Key Stock Movements in Sensex

Among Nifty 50 components:

Corporate Developments

Shriram Finance saw a significant uptick of over 4% following impressive Q3FY25 results, reporting a 96% year-on-year increase in net profit to Rs 3,570 crore. ITC Hotels made its market debut at Rs 180 per share on the NSE, marking a 31% discount from its implied price following the demerger from ITC. JSW Energy faced pressure, dropping 6% after reporting lower third-quarter profits due to weak power demand.

RBI Measures and Market Impact

The Reserve Bank of India’s announcement of liquidity injection measures, including bond purchases and dollar/rupee swaps, boosted banking sector sentiment. These measures are expected to inject $17.39 billion into the system, potentially setting the stage for a rate cut in the coming month.

Global Context and Fed Meeting

Market strategist Rohit Srivastava noted that while the FOMC decision is anticipated, it’s unlikely to significantly impact markets as no rate changes are expected. The focus has shifted to the upcoming budget, with expectations centered around fiscal prudence rather than major positive announcements.

Technical Outlook for Sensex

According to Mandar Bhojane from Choice Broking, the Nifty showed strong recovery from its key support at 22,800. He suggests that sustaining above 23,300 could push the index toward 23,650 and 23,800, while 22,800 remains a crucial support level.

Market Sentiment

The overall market sentiment remains positive, supported by global tech recovery and domestic liquidity measures. However, analysts maintain a cautious stance on IT sector prospects, noting that structural changes and valuation concerns persist despite the day’s gains. The market’s immediate focus remains on the upcoming budget and its implications for fiscal policy and sector-specific growth opportunities.

Exit mobile version