The Indian stock market extended its winning streak for a third consecutive session on Thursday, as benchmark indices closed at their highest levels since early July. The rally was sparked by the U.S. Federal Reserve's decision to cut interest rates, which boosted investor sentiment globally.
The S&P BSE Sensex surged 320.25 points (0.39%) to settle at 83,013.96. The NSE Nifty 50 also climbed 93.35 points (0.37%) to close at 25,423.60, holding firmly above the 25,400 mark.
Key Market Highlights
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Sensex: Gained 320 points to close at 83,013.96.
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Nifty 50: Advanced 93 points to end at 25,423.60.
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Market Sentiment: The mood on Dalal Street was bullish following the much-anticipated rate cut by the U.S. Fed. The India VIX, a measure of market volatility, cooled down by over 3.5% to 9.89 points, indicating increased investor confidence.
Top Gainers and Losers
Gains were led by pharma and IT heavyweights, while some auto and financial stocks saw profit-booking.
| Top Gainers |
Top Losers |
| Eternal Ltd |
Coal India |
| HDFC Life |
Bajaj Finance |
| Sun Pharma |
Trent |
| Cipla |
Tata Motors |
| Infosys |
Tata Consumer Products |
Sectoral Performance
Pharma and IT sectors were the stars of the day, outperforming the broader market.
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Top Gainers: The Nifty Healthcare and Nifty Pharma indices were the top performers, surging by 1.50% and 1.33%, respectively. The Nifty IT index also saw strong gains of 0.83%.
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Top Losers: The Nifty Media and Nifty PSU Bank indices were the main laggards, ending with minor losses.
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Broader Markets: The positive sentiment was widespread, with the Nifty Midcap 100 and Nifty Smallcap 100 indices closing with gains of 0.38% and 0.29%, respectively.
Major News and Stock-Specific Action
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US Fed Rate Cut: The primary driver for the market was the U.S. Federal Reserve's decision to cut its key interest rate by 25 basis points to a range of 4 - 4.25%. This was the first rate cut by the U.S. central bank this year and was in line with market expectations.
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Biocon Surges on FDA Nod: Shares of Biocon jumped over 4% after its subsidiary, Biocon Biologics, received approval from the U.S. Food and Drug Administration (USFDA) for two of its biosimilar products.
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Poonawalla Fincorp Jumps: Poonawalla Fincorp was a top gainer in the small-cap space, surging over 12%. The stock was one of more than 160 on the BSE that touched a new 52-week high.
Global Market Summary
Global stock markets showed a mixed and choppy reaction as investors digested the Fed's commentary.
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Global Stocks: While Asian markets reacted positively to the rate cut, global stocks were choppy as the Fed signalled a measured approach to further easing, leaving investors uncertain about the pace of future cuts.
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Currencies & Commodities: The U.S. dollar drifted higher after the announcement. Oil prices declined, while safe-haven gold saw a slight increase.
Frequently Asked Questions (FAQs)
1. Why did the stock market rally today?
The market's rally was primarily fueled by the U.S. Federal Reserve's decision to cut interest rates by 25 basis points, which boosted global investor sentiment.
2. Which sectors led the gains in today's session?
The Nifty Healthcare, Pharma, and IT indices were the top sectoral performers, leading the market's advance.
3. What was the U.S. Federal Reserve's decision on interest rates?
The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 4 - 4.25%. This was the first rate cut of the year.
4. How did the broader midcap and smallcap stocks perform?
The broader markets mirrored the positive sentiment, with the Nifty Midcap 100 and Smallcap 100 indices both closing in the green with gains of 0.38% and 0.29%, respectively.