The Indian stock market witnessed a robust uptrend today, with both the benchmark indices, Nifty and Sensex, closing significantly higher. Buoyed by a global equity rally triggered by the US Federal Reserve's commitment to maintaining its projection of three rate cuts this year, domestic investors displayed optimism, leading to a broad-based buying spree.
The Nifty50 closed at 22,011.95, marking a gain of 172.85 points or 0.79 per cent. Similarly, the Sensex surged 539.5 points or 0.75 per cent, settling at 72,641.19.
Financial and power stocks were among the top performers on Dalal Street, driving the market sentiment positively throughout the trading session. Notable gainers in the Nifty basket included NTPC, BPCL, Power Grid, Tata Steel, and Coal India, each posting gains ranging between 3 to 4 per cent. Conversely, stocks such as Bharti Airtel, HDFC Life, Maruti Suzuki, ICICI Bank, and ONGC faced losses.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted the influence of global market trends on domestic sentiments. "The domestic market is taking cues from the global market, infused with optimism as the Federal Reserve signaled its commitment to three interest rate cuts this year. This move comes despite inflation staying above the long-term target," Nair stated.
The rally wasn't confined to the blue-chip indices alone. Broader indices such as Nifty Smallcap100 and Nifty Midcap100 surged 2.51 per cent and 2.43 per cent respectively, outperforming the frontline index. Investors seemed emboldened by the HSBC composite PMI data, which revealed a rise to 61.3 per cent in March compared to 60.6 in February, indicating supportive economic conditions.
Meanwhile, the Nifty Bank index, comprising major banking stocks including SBI, HDFC Bank, and ICICI Bank, closed 0.81 per cent higher at 46,684.9, adding 374 points.
In the global arena, European shares also witnessed a bullish trend. The pan-European STOXX 600 index surged 0.7 per cent, hitting a record high of 510.07 points. Basic resources-linked stocks led the gains, with a 2.7 per cent jump as prices of most metals climbed. Gold, in particular, soared to record highs following the Federal Reserve's announcement.
The overall market sentiment remains positive, with investors eyeing upcoming central bank decisions and continuing to monitor global economic indicators for further cues.
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