Sensex jumps 447 pts, Nifty tops 25,400 on Fed rate cut boost; IT stocks shine

Domestic equity benchmarks Sensex and Nifty opened higher on Thursday, extending their Wednesday’s gains, after the US Federal Reserve trimmed its benchmark interest rate by 25 basis points. Investor sentiment was further buoyed as Fed Chair Jerome Powell signalled the possibility of two more quarter-point cuts later this year.

At 9:17 am, the BSE Sensex rose 351.89 points, or 0.43 per cent, to 83,045.60 after climbing as much as 447 points in early trade. The NSE Nifty50 advanced 92.90 points, or 0.37 per cent, to 25,423.15, hitting a day’s high of 25,448.95

Among Sensex stocks, Infosys led gainers, rising 1.60 per cent to Rs 1,547.35.  HCL Technologies shares were up 0.99 per cent. Other gainers included Tech Mahindra (up 0.90 per cent), Sun Pharma (up 0.87 per cent) and HDFC Bank (up 0.73 per cent).

In overnight trade, Wall Street ended on a mixed note. The S&P 500 slipped 0.09 per cent to 6,600.35, while the Nasdaq fell 0.33 per cent to 22,261.33. In contrast, the Dow Jones Industrial Average advanced 0.57 per cent to close at 46,018.32.

Asian markets were also trading mixed earlier on Thursday. Japan’s Nikkei 225 gained 1.09 per cent at 45,277.43, while South Korea’s KOSPI advanced 0.99 per cent to 33,447.34. However, Hong Kong’s Hang Seng Index inched down 0.01 per cent to 26,904.51.

On Wednesday, the Sensex climbed 313.02 points, or 0.38 per cent, to 82,693.71, while the Nifty50 rose 91.15 points, or 0.36 per cent, to close at 25,330.25.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said Fed Chair Jerome Powell termed the 25-basis-point rate cut a “risk management move”.

Vijayakumar said that the Fed’s commentary underscored uncertainties around growth, jobs and inflation. “Since the labour market is cooling and the GDP growth projection for 2025 is only 1.6 per cent, perhaps two more cuts are possible this year even though the Fed chief categorically stated that ‘the policy is not on present path.’ The softening interest rate scenario is favourable for the market to remain bullish,” he said

“The Indian stock market is unlikely to be impacted by the Fed decision. The ongoing rally in the market is driven by expectations of earnings revival and a positive outcome from the India-US trade negotiations,” Vijayakumar said.

Amruta Shinde, a technical & derivative analyst at Choice Equity Broking Private Limited, said, the GIFT Nifty is indicating a gain of nearly 100 points in the Nifty 50. “Market sentiment remains cautiously optimistic, though persistent volatility and mixed global cues continue to weigh on investor confidence,” Shinde said.

Shinde said the 50-pack index held firmly above the 25,300 mark in the previous session, reinforcing psychological strength and signaling investor comfort at higher levels. “The index now shows potential upside momentum, with resistance expected around the 25,400–25,500 zone. On the downside, support remains intact at 25,000–24,900.”