Share Market Surge Following Fed's Interest Rate Cut Hint: Sensex Up 400 Points, Nifty Crosses 23,000. IT Stocks Shine, with Infosys, TCS, and Tech Mahindra Leading the Gains.
Share Market: The Indian share market witnessed a significant surge on Thursday (March 20th) fueled by hints from the US Federal Reserve (US Federal Reserve) about potential interest rate cuts. Domestic markets opened in the green, with IT stocks exhibiting b gains.
Robust Gains in Sensex and Nifty
The BSE Sensex opened bly at 75,917.11. By 9:30 AM, the Sensex had climbed 436.37 points (0.58%) to trade at 75,885.42. Similarly, the NSE Nifty 50 also opened above 23,000 and reached 23,034 by 9:30 AM, up 126.45 points (0.55%).
Top Gainers
Following the Fed's indication of potential interest rate cuts, IT sector stocks saw a substantial surge. Infosys climbed by up to 3%, while TCS, HCL Tech, Tech Mahindra, Titan, and Zomato were among the top gainers.
Fed Holds Interest Rates Steady
The US Federal Reserve maintained interest rates unchanged on Wednesday. However, officials hinted at a potential 0.50% interest rate cut by the end of the year. This decision was taken in light of slower economic growth and potentially decreasing inflation.
Fed's Revised Inflation Strategy
The Federal Reserve raised its US inflation projection to 2.7%, up from the previous estimate of 2.5%. The Trump administration's decision to impose new import tariffs could further exacerbate inflationary pressures. The Fed's long-term goal remains to maintain inflation at 2%.
Mixed Performance in Global Markets
On Wall Street, the Dow Jones rose by 0.92%, the S&P 500 gained 1.08%, and the Nasdaq surged 1.41%. Asian markets showed a mixed performance—Japan's Nikkei fell 0.25%, South Korea's Kospi rose 0.49%, and Australia's ASX200 was up 0.87%.
Market Performance on Wednesday
On Wednesday (March 19th), the Indian markets closed in the green for the third consecutive day.
- The Sensex closed at 75,449.05, up 147.79 points (0.20%).
- The Nifty 50 closed at 22,907.60, up 73.30 points (0.32%).
Foreign Institutional Investors (FIIs) sold shares worth ₹1,096.50 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹2,140.76 crore.
