The Indian stock market moved into the deep green on Thursday, with Sensex and Nifty rising up to 0.5% each after the Federal Reserve kept its interest rates unchanged on expected lines, although investors will likely remain cautious, bracing for expiry-day volatility.
Sensex jumped over 500 points to 73,798 while Nifty 50 gained over 150 points to trade above the 22,850 level, as seen at around 10.30 AM. Broader markets also recovered sharp gains, with Nifty Smallcap 100 and Nifty Midcap 100 rising up to 0.4%.
Adani Ports and Power Grid shares gained nearly 3% each to lead gains on Sensex, while Kotak Mahindra Bank, NTPC, Reliance Industries, Titan, HUL and ITC shares gained up to 2% to follow. Bucking the trend, Trent shares fell around 2%.
Most of the sectoral indices traded in the green, except Nifty Auto which fell around 0.45%. Nifty FMCG, Nifty PSU Bank, Nifty Consumer Durables and others meanwhile gained up to 1%. The overall market breadth remained positive, with NSE seeing 1,809 advances against 1,337 declines, while 105 stocks remained unchanged.
What lies ahead for Dalal Street?
The Fed holding rates as expected is mildly positive for equity markets, globallyH, said V K Vijayakumar, Chief Investment Strategist, Geojit Investments. He however noted that from the Indian perspective, the headwinds continue to be strong. The 10-year US bond yield continues to hover around 5% and there are no signs of easing of the crude prices. Reports that the chip shortage issue will persist up to 2030 has brought interest back into the chip stocks and AI trade in South Korea and Taiwan. This means that foreign money will continue to chase AI and AI- related stocks, ignoring India.
There is increasing hope now regarding LTCGs tax relief in the coming Budget, the analyst noted. “It appears that this is no longer a matter of choice. Capital flight of this magnitude ($31 billion so far in 2026) is impacting India’s macros. With crude remaining elevated for long, trade and current account deficits will widen, leading to depreciation of the rupee and the consequent imported inflation. This will further aggravate the high inflation which will continue rising in the context of the hugely deficient monsoon this year,” he added.
With directional momentum missing, Anand James, Chief Market Strategist at Geojit Investments, expects Nifty swings on either side of 22,725 initially.
“For now, 22,840 and 22,500 are likely to restrain swings, but we would be encouraged to pursue up moves aiming 23,050-23,600 as long as a close below 22,660 is not seen,” he added.
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