Indian Markets Surge After Fed Holds Rates Steady Amid Global Tensions

The Indian stock market rallied on Thursday as investors reacted positively to the US Federal Reserve's decision to maintain interest rates and revise economic projections. With key indices like the Sensex and Nifty making significant gains, market sentiment remains hopeful despite ongoing global trade tensions and FPI sales.

The Indian stock market experienced an upswing on Thursday, buoyed by the US Federal Reserve's announcement to keep interest rates unchanged. The Fed's revised outlook lowered growth projections while increasing inflation and unemployment estimates. This news was well-received by investors, leading to upward movements in both the Sensex and Nifty indices.

The Sensex surged by 381.49 points to reach 75,830.54 at the opening, and the Nifty followed suit with a gain of 118.65 points, settling at 23,026.25. Market sentiment appeared strong as 41 out of the 50 companies in the Nifty index witnessed gains. Among the noteworthy gainers were Wipro, Infosys, Bharat Electronics Limited (BEL), Hero MotoCorp, and HCL Technologies, while key losers included HDFC Life, UltraTech Cement, JSW Steel, Sun Pharma, and Dr Reddy's Laboratories.

Banking and market expert Ajay Bagga noted that central banks aligned with market expectations. He mentioned that the Bank of Japan paused their policies due to trade uncertainties, while Bank Indonesia held interest rates amidst the Rupiah's struggle. Meanwhile, Brazil's Central Bank raised rates to combat inflation. The US markets interpreted the Fed's decisions as dovish, rallying in response and strengthening the dollar.

(With inputs from agencies.)