Nifty reclaims 23,000, Sensex gains 400 points—What's driving today's rally?
What's the story
The Indian stock market witnessed a major rally on Thursday, following the US Federal Reserve's decision to keep interest rates unchanged. Around 11:00am, the BSE Sensex was up by 442 points to trade at 75,891. Meanwhile, the Nifty50 had gained 136 points to touch 23,044. Nifty has regained 23,000 level after a month. In today's session, all the 13 major sectors logged gains.
Market momentum
IT stocks lead market rally
The rally was largely driven by IT stocks, making it the fourth day of Dalal Street's positive momentum. Dr. V K Vijayakumar of Geojit Financial Services, said that the Fed maintaining the rates and projecting lower growth at 1.7% and higher inflation at 2.8% for 2025 are on expected lines. The evolving outlook is "highly uncertain thanks to Trump's tariff tantrums," he said, adding that the market will be on a wait and watch until reciprocal tariffs are declared.
Market impact
US Fed's steady rates boost emerging markets
The US Federal Reserve's decision to keep interest rates steady (it maintained its benchmark rate in the range of 4.25-4.5%) has made emerging markets such as India more attractive for foreign investors. WealthMills Securities' Kranthi Bathini said while the Fed's decision will have a neutral impact on stocks in the medium to short term, it will positively impact market sentiment in the medium term.